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Question
Average fixed cost equalsa. total cost divided by output.
b. total cost minus total variable cost.
c. average total cost plus average variable cost.
d. total fixed cost minus total variable cost.
e. total fixed cost divided by output.
Answer
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Related questions
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One problem with using historical data to estimate demand is the
a. fact that people do not always buy what they need.
b. large number of interviews that must be conducted to gather information on buyers' intentions.
c. many variations in price necessary to measure changes in demand.
d. likelihood that the demand curve has shifted over the time period covered by the data.
e. need to have both price and quantity data to estimate demand.
Q:
The idea behind the direct market experiment to measure demand is to
a. see the effects on the quantity demanded of actual variations in the price of a product.
b. use statistical methods to estimate demand curves from historical data.
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The following questions are based on the following graph. The curves D and S represent the market demand and supply curves for farm products in 19 The curves D1 and S1 represent the market demand and supply curves for farm products in It is supposed that there were no support programs in either year. The relatively large shift in the supply curve over the 40 years illustrates that
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Q:
Low or negative income elasticities of demand indicate that the items are
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Q:
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Q:
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$43,750 $4.50
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$45,000 $3.50
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Q:
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Q:
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Total cost
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$46 3 $20 4 $18 5
$130
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Q:
The following questions are based on the following table: Units of output
Total cost
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Marginal cost 0 1 $10 2
$46 3 $20 4 $18 5
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Q:
As output increases, average variable cost first declines but eventually rises because
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b. falling.
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Q:
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a. $0.65.
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d. $65.
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Q:
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Q:
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Q:
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Q:
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Q:
The decline in additional satisfaction received as more and more units of a commodity are consumed (the consumption of other commodities held constant) is known as the law of
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Q:
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Q:
The use of computerized photo composition methods allowed the Asbury Park Press to
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Q:
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c. rise.
d. fall.
e. remain the same, but total input cost will rise.
Q:
Costs are clearly minimized for a given level of output as long as the firm
a. uses inputs that do not exhibit declining productivity.
b. pays the same price for all of its inputs.
c. is not able to increase output by substituting a dollar's worth of input A for a dollar's worth of input B, or vice versa.
d. can increase output without increasing its cost.
e. equates the marginal products of both inputs A and B.
Q:
The law of diminishing marginal returns means that as you increase the number of units of a variable input, after some point ________ will fall.
a. total output
b. costs of production
c. demand
d. marginal output
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Q:
The following questions are based on the following information:
A firm uses inputs of labor, fertilizer, and land to produce strawberries (which are sold to wholesalers and processors). The quantity of land used is fixed at eight acres per season and the production function implies the relationships in the following table: Number of units of labor
Bushels of strawberries produced per year 0
0 1
3,000 2
8,000 3
12,000 4
14,000 5
15,500 It can be said that this firm experiences diminishing returns beyond the employment of the ________ unit of labor.
a. first
b. second
c. third
d. fourth
e. fifth
Q:
The following questions are based on the following diagram illustrating the weekly average and marginal products for salespersons in the appliance department of a large department store: Diminishing marginal returns set in when adding the ________ salesperson.
a. first
b. second
c. third
d. fourth
e. fifth
Q:
If the average product of labor falls from 5 to 4.5 when a sixth unit of labor is added, the marginal product of this sixth person is
a. 27.
b. 9.5.
c. 4.5.
d. 2.
e. 0.5.
Q:
The following questions are based on the following production function: Number of person-hours
Quantity of oysters harvested (in bushels) 0
0 1
4 2
7 3
9 4
10 5
10.5 Person-hours of labor would be considered a(n) ________ input.
a. fixed
b. variable
c. average
d. break-even
e. diminishing