Question 1

Figure 11-9 
-Refer to Figure 11-9.Starting from point e,a movement along the isocost to point f

Accepted Answer

A)  decreases the total cost of production but not output.
B)  increases the total cost of production and decreases output.
C)  decreases both the total cost of production and output.
D)  decreases output but not the total cost of production.E) B) and C)
F) A) and D)

Question 2

The Santa Fe Spark Plug Company supplies spark plugs to automotive parts dealers.An increase in the demand for its product led Santa Fe to hire 150 new workers.Santa Fe also plans to expand the capacity of its plant but this project will take 2 years to complete.Which of the following statements is true?

Accepted Answer

A)  The wages and benefits paid to the new workers are implicit costs.
B)  The long run for Santa Fe is longer than 1 year.
C)  The short run for Santa Fe is 1 year.
D)  In the short run Santa Fe's variable costs increase but its fixed costs decrease.E) A) and D)
F) A) and C)

Question 3

Figure 11-8 
-Refer to Figure 11-8.Assume that production isoquants are convex.Total cost and output produced must increase for each of the following movements except one.Which movement is the exception?

Accepted Answer

A)  point a to point b
B)  point a to point c
C)  point b to point c
D)  point b to point dE) A) and B)
F) A) and C)

Question 4

If average total cost is falling marginal cost must also be falling.

Accepted Answer

A) True 
 B)False

Question 5

If 11 workers can produce 53 units of output while 12 workers can produce 56 units of output,what is the marginal product of the 12th worker?

Accepted Answer

A)  0.16
B)  3
C)  4.67
D)  36E) A) and B)
F) A) and C)

Exam 11: Technology, production, and Costs

Figure 11-8 -Refer to Figure 11-8.Assume that production isoquants are convex.Total cost and output produced must increase for each of the following movements except one.Which movement is the exception?

Correct Answer
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If 11 workers can produce 53 units of output while 12 workers can produce 56 units of output,what is the marginal product of the 12th worker?

Correct Answer
verified

Correct Answer
verified

Figure 11-9 -Refer to Figure 11-9.Starting from point e,a movement along the isocost to point f

Correct Answer
verified

If average total cost is falling marginal cost must also be falling.

Correct Answer
verified

Exam 11: Technology, production, and Costs

Figure 11-8 -Refer to Figure 11-8.Assume that production isoquants are convex.Total cost and output produced must increase for each of the following movements except one.Which movement is the exception?

Correct AnswerverifiedShow Answer

If 11 workers can produce 53 units of output while 12 workers can produce 56 units of output,what is the marginal product of the 12th worker?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 11-9 -Refer to Figure 11-9.Starting from point e,a movement along the isocost to point f

Correct AnswerverifiedShow Answer

If average total cost is falling marginal cost must also be falling.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified