1. Which of the following is most likely to represent a fixed cost of a firm? A)...
Question:
1. Which of the following is most likely to represent a fixed cost of a firm?
A) Rental cost of the factory space a firm uses.
B) Shipping charges for the delivery of products.
C) Electricity.
D) Expenditures on assembly-line labor.
2. When costs that change in the short run are divided by the output level, you have calculated
A) total fixed costs.
B) average fixed costs.
C) average variable costs.
D) marginal costs.
3. Inputs a manager cannot adjust in order to alter production are:
A. All factors.
B. Variable factors.
C. Long-run factors.
D. Fixed factors.
4. What is the average product of labor, given that the level of labor equals 10, total output equals 2000 and the marginal product of labor equals 200? A. 200. B. 120. C. 6. D. 2000. If a firm is operating on the production function, then workers
A. must be putting forth maximal effort.
B. may not be putting forth maximal effort.
C. are usually putting forth average effort.
D. are usually putting forth minimal effort
5. When marginal cost curve is below an average cost curve, average cost is
A. increasing with output.
B. declining with output.
C. not varying with output.
D. none of the statements associated with this question are correct.
6. Economies of scale exist whenever long-run average costs
A. increase as output is increased.
B. decrease as output is increased.
C. remain constant as output is increased.
D. none of the statements associated with this question are correct.
7. Which of the following "costs" could a firm that wants to remain in business avoid if it halted current production?
A. Fixed costs.
B. Variable costs.
C. Sunk costs.
D. Opportunity costs.
8. What is implied when the total cost of producing Q1 and Q2 of good X together is less than the total cost of producing Q1 and Q2 separately?
A. Economies of scale.
B. Diminishing average fixed costs.
C. Cost complementarity.
D. Economies of scope.
Expert Answer:
