In economics, the short run is the time frame in which ______________ and the long run is the period of time in which ______________.

all resources are variable but technology is fixed, technology is variable
some resources are variable, all resources are fixed
all resources are fixed, all resources are variable
some resources are fixed, all resources are variable

Which of the following statements is true?

When average product exceeds marginal product, marginal product is rising.
When marginal product exceeds average product, average product is rising.
When average product is rising, marginal product is rising.
When marginal product is falling, average product is falling.

Diminishing marginal returns start when as output increases,

average product reaches a maximum.
total product reaches a maximum.
average product begins to decrease.
marginal product begins to decrease.

Which of the following statements is true?

If marginal product exceeds average product, marginal product rises.
If marginal product equals average product, average product is a maximum.
If marginal product equals average product, marginal product is a maximum.
If average product equals marginal product, average product falls.

If marginal cost is below ______________________, then __________________ is ____________.

average total cost; average variable cost; falling
average total cost; marginal cost; rising
average variable cost; marginal cost; falling
average variable cost; average variable cost; falling

If marginal cost exceeds average variable cost, then ___________________cost is ____________.

average total; rising
average variable; rising
average total; at a minimum
average fixed; rising

The marginal cost curve passes through the __________ points of the ____________ cost curve and the _________ cost curve.

minimum; average variable; average fixed
minimum; average total; average fixed
maximum; total cost; total variable
minimum; average total; average variable

When a firm experiences diseconomies of scale, its __________________ cost curve slopes ____________.

short-run average total; downward
long-run average; upward
short-run marginal cost; downward
long-run average; downward

A firm experiences ___________ when its ___________ downward at larger outputs.

economies of scale; long-run average cost curve slopes
diminishing marginal returns; long-run average cost curve slopes
diminishing marginal returns; average total cost curve shifts
economies of scale; average total cost curve slopes

The firm's production function is the relationship between the _________ and ____________.

maximum output possible; the quantity of variable inputs
output produced; the quantities of all inputs
maximum output possible; the quantities of all inputs
possible range of maximum output; the quantity of variable inputs

Please enter your name and press the SEND button