Eco11L3
1
The table gives the output that Terry's T Shirts can produce when it has 1 sewing machine. An increase in the number of workers from 1 to 2 a day increases average product from ___________T shirts a day and marginal product is _______T shirts per worker.
0 to 18; 18
8 to 18; 9
8 to 9; 10
8 to 9; 1
2
Diminishing marginal returns begin when the ____________ is employed.
third worker
fourth worker
fifth worker
second worker
3
When marginal product is a maximum, average product is _____________.
increasing
equal to marginal product
a maximum
decreasing
4
The table gives the output that Terry's T Shirts can produce when it has 1 sewing machine. When 4 workers are employed, ____________________________.
marginal product exceeds average product
average product is a maximum
marginal product is less than average product
marginal product equals average product
5
The table gives the cost of producing T shirts. The total fixed cost is _____________ and the marginal cost of increasing production from 5 to 6 T shirts is ______________.
$5; $0
$18; $10
$15; $5
$10; $8
6
The table gives the cost of producing T shirts. When 5 T shirts are produced, the average fixed cost is _____________ and the average variable cost is ______________.
$2.00; $8.50
$2.00; $6.40
$5.00; $3.00
$10.00; $8.50
7
If total fixed cost increases, then the average total cost curve ___________ and the marginal cost curve _________________.
does not shift; does not shift
shifts upward; shifts upward
does not shift; shifts upward
shifts upward; does not shift
8
If as output increases average product increases, then ______________.
average fixed cost decreases
average total cost decreases
marginal cost decreases
average variable cost decreases
9
An increase in the quantity of fixed inputs shifts the average total cost curve ___________ if _________________ exist.
upward; constant returns to scale
downward; diseconomies of scale
downward; economies of scale
upward; economies of scale
10
If all inputs are increased by 5 percent and output increases by 8 percent, then all the following are true except ______________________.
the firm experiences economies of scale
the long-run average cost curve slopes downward
the long-run average cost curve shifts downward
the firm experiences increasing returns to scale
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