Economics

If a firm has labor as its only variable input, the total cost curve is shaped identically to the __

If a firm has labor as its only variable input, the total cost curve is shaped identically to the __

If a firm has labor as its only variable input, the total cost curve is shaped identically to the __________
A) labor requirements curve.
B) marginal product curve.
C) total product curve.
D) fixed cost curve.

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If a firm has labor as its only variable input, its total variable cost of output is equal to

If a firm has labor as its only variable input, its total variable cost of output is equal to

If a firm has labor as its only variable input, its total variable cost of output is equal to
A) price ÷ labor.
B) price * labor.
C) wage rate ÷ labor.
D) wage rate * labor.

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Your mother yells at you for skipping your Economics class last week. She says, "I paid good money

Your mother yells at you for skipping your Economics class last week. She says, "I paid good money

Your mother yells at you for skipping your Economics class last week.  She says, "I paid good money for you to take that class, now I expect you to attend."  You respond to your mother, "I have learned a lot in economics, and

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A business just spent $100,000 for legal fees in the process of getting a patent for their product.

A business just spent $100,000 for legal fees in the process of getting a patent for their product.

A business just spent $100,000 for legal fees in the process of getting a patent for their product.  Now that they have the patent, they realize that demand for the product is not as good as they thought.  They project their total sales wil

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An example of a variable cost for a golf course would be

An example of a variable cost for a golf course would be

An example of a variable cost for a golf course would be
A) the amount they pay to their workers in wages.
B) insurance premiums.
C) the property taxes they pay.
D) the amount they pay to lease lawn mowers.

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Total cost ________ in the short run as the quantity of output increases.

Total cost ________ in the short run as the quantity of output increases.

Total cost ________ in the short run as the quantity of output increases.
A) remains constant
B) decreases at first and then increases
C) decreases
D) increases

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Total variable costs ________ in the short run as the quantity of output increases.

Total variable costs ________ in the short run as the quantity of output increases.

Total variable costs ________ in the short run as the quantity of output increases.
A) remain constant
B) decrease at first and then increase
C) decrease
D) increase

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Total fixed costs ________ in the short run as the quantity of output increases.

Total fixed costs ________ in the short run as the quantity of output increases.

Total fixed costs ________ in the short run as the quantity of output increases.
A) increase
B) remain constant
C) decrease at first and then increase
D) decrease

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When Jackie's Hot Dog Stand sells 500 hotdogs, it has total fixed costs of $200 and total variable c

When Jackie's Hot Dog Stand sells 500 hotdogs, it has total fixed costs of $200 and total variable c

When Jackie's Hot Dog Stand sells 500 hotdogs, it has total fixed costs of $200 and total variable costs of $400.  What are Jackie's Hot Dog Stand's fixed costs when they sell 1,000 hotdogs?
A) $600
B) $200
C) $400

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Which of the following is not an example of a fixed cost for a firm?

Which of the following is not an example of a fixed cost for a firm?

Which of the following is not an example of a fixed cost for a firm?
A) the wages of hourly labor
B) executive salaries
C) lease payments on real estate
D) property taxes

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Discuss some recent business scandals that have been in the news.

Discuss some recent business scandals that have been in the news.

Discuss some recent business scandals that have been in the news.

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What types of incentives do you think could be put in place in order to improve ethical behavior in

What types of incentives do you think could be put in place in order to improve ethical behavior in

What types of incentives do you think could be put in place in order to improve ethical behavior in business?

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A friend of yours says, "Adam Smith and all economists are only concerned with selfishness and selfi

A friend of yours says, "Adam Smith and all economists are only concerned with selfishness and selfi

A friend of yours says, "Adam Smith and all economists are only concerned with selfishness and selfishness is never in the best interest of the public." What is your response?

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Explain how it might be profitable for a firm in the long-run to spend a lot of money to quickly res

Explain how it might be profitable for a firm in the long-run to spend a lot of money to quickly res

Explain how it might be profitable for a firm in the long-run to spend a lot of money to quickly respond to a defect in its product.

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Which of the following sequences of total product numbers illustrates diminishing returns? Why?

Which of the following sequences of total product numbers illustrates diminishing returns? Why?

Which of the following sequences of total product numbers illustrates diminishing returns?  Why?
a)  15, 25, 32, 37, 40
b)  15, 10, 7, 15, 25
c)  15, 25, 40, 60, 85

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Why is it necessary to have a fixed input in order to have diminishing marginal returns?

Why is it necessary to have a fixed input in order to have diminishing marginal returns?

Why is it necessary to have a fixed input in order to have diminishing marginal returns?

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Explain what a fixed input is and give an example of fixed inputs that a restaurant would have. How

Explain what a fixed input is and give an example of fixed inputs that a restaurant would have. How

Explain what a fixed input is and give an example of fixed inputs that a restaurant would have.  How are these fixed inputs treated in the short run?  in the long run?

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When economists model product, they assume the firm only uses two inputs. What are the two inputs a

When economists model product, they assume the firm only uses two inputs. What are the two inputs a

When economists model product, they assume the firm only uses two inputs.  What are the two inputs and what do they represent?

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Use the law of diminishing returns to explain a student's statement, "I studied too much for the exa

Use the law of diminishing returns to explain a student's statement, "I studied too much for the exa

Use the law of diminishing returns to explain a student's statement, "I studied too much for the exam."

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Explain why the marginal product curve crosses the average product curve at the maximum of the avera

Explain why the marginal product curve crosses the average product curve at the maximum of the avera

Explain why the marginal product curve crosses the average product curve at the maximum of the average product curve.

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Why does the law of diminishing returns only apply in the short run?

Why does the law of diminishing returns only apply in the short run?

Why does the law of diminishing returns only apply in the short run?

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Explain how the marginal product of labor can decrease as more workers are added even if the quality

Explain how the marginal product of labor can decrease as more workers are added even if the quality

Explain how the marginal product of labor can decrease as more workers are added even if the quality of labor is held constant.

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Why does marginal product equal the slope of the total product curve?

Why does marginal product equal the slope of the total product curve?

Why does marginal product equal the slope of the total product curve?

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When the Red Brick Builders increases labor from 70 to 71, their production of red bricks increases

When the Red Brick Builders increases labor from 70 to 71, their production of red bricks increases

When the Red Brick Builders increases labor from 70 to 71, their production of red bricks increases from 1410 to 1420.  How much is the marginal product of the 71st worker?  How much is the average product when there are 71 employees? 

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You own a moving company. You currently own three moving trucks and you hire workers on a per-day b

You own a moving company. You currently own three moving trucks and you hire workers on a per-day b

You own a moving company.  You currently own three moving trucks and you hire workers on a per-day basis.  If you have a very busy week, how can you change production to be able to move more people?  How would your answer be different

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What do economists mean by the "short run"? How is this different from the "long run"?

What do economists mean by the "short run"? How is this different from the "long run"?

What do economists mean by the "short run"?  How is this different from the "long run"?

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The change in total product divided by the change in labor is call the ________.

The change in total product divided by the change in labor is call the ________.

The change in total product divided by the change in labor is call the ________.

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If ________ is greater than average product, then average product will increase.

If ________ is greater than average product, then average product will increase.

If ________ is greater than average product, then average product will increase.

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The ________ is a time period in which the quantity of all inputs can be changed.

The ________ is a time period in which the quantity of all inputs can be changed.

The ________ is a time period in which the quantity of all inputs can be changed.

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The law of diminishing returns implies that as more workers are hired, the ________ product curve is

The law of diminishing returns implies that as more workers are hired, the ________ product curve is

The law of diminishing returns implies that as more workers are hired, the ________ product curve is decreasing.

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If the slope of the total product curve is decreasing, marginal product must be decreasing as well.A

If the slope of the total product curve is decreasing, marginal product must be decreasing as well.A

If the slope of the total product curve is decreasing, marginal product must be decreasing as well.
A) True
B) False

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When John hires five workers, his lawn service can mow 32 lawns per day. When John hires six worker

When John hires five workers, his lawn service can mow 32 lawns per day. When John hires six worker

When John hires five workers, his lawn service can mow 32 lawns per day.  When John hires six workers, his lawn service can mow 36 lawns per day.  The marginal product of the 6th worker is four lawns.
A) True
B) False

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The short run is also called the planning horizon for a firm.

The short run is also called the planning horizon for a firm.

The short run is also called the planning horizon for a firm.
A) True
B) False

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The law of diminishing returns only applies when labor quality decreases as you add more workers.

The law of diminishing returns only applies when labor quality decreases as you add more workers.

The law of diminishing returns only applies when labor quality decreases as you add more workers.
A) True
B) False

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Negative returns to labor are illustrated by the portion of the

Negative returns to labor are illustrated by the portion of the

Negative returns to labor are illustrated by the portion of the
A) average product curve that has a negative slope.
B) marginal product curve that lies below the horizontal axis.
C) marginal product curve that has a negative slope.

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At the J&W restaurant, Ollie would cook the burgers, Lil would put the condiments on them, Betty wou

At the J&W restaurant, Ollie would cook the burgers, Lil would put the condiments on them, Betty wou

At the J&W restaurant, Ollie would cook the burgers, Lil would put the condiments on them, Betty would wrap them, and Ruth Anne would put them all in a bag.  Together the four of them can produce a lot more hamburgers than they each could se

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When a restaurant adds a second worker in the kitchen, it can serve a lot more customers than when o

When a restaurant adds a second worker in the kitchen, it can serve a lot more customers than when o

When a restaurant adds a second worker in the kitchen, it can serve a lot more customers than when only one worker is working in the kitchen.  This is an example of
A) specialization.
B) deadweight loss.
C) the law of diminishing

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Any time that a firm is experiencing diminishing returns to labor

Any time that a firm is experiencing diminishing returns to labor

Any time that a firm is experiencing diminishing returns to labor
A) marginal product is falling as more workers are added.
B) total output is falling as more workers are added.
C) both A and B
D) neither A nor B

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If the slope of total product is decreasing then

If the slope of total product is decreasing then

If the slope of total product is decreasing then
A) marginal product must be decreasing.
B) total product must be increasing.
C) marginal product must be increasing.
D) total product must be decreasing.

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Marginal product equals (Multiple Choice Question)

Marginal product equals (Multiple Choice Question)

Marginal product equals
A) the slope of the demand curve.
B) the slope of the supply curve.
C) the slope of the total product curve.
D) the slope of the production possibilities frontier.

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