Eco practice 4 | Economics homework help

Practice 4

1. In the short run marginal product is diminishing because: 

A. barriers to entry prevent new firms from entering the industry.
B. the firm does not have sufficient time to change the size of its plant.
C. the firm does not have sufficient time to cut its rate of output to zero.
D. a firm does not have sufficient time to change the amounts of any of the resources it employs.

2. The law of diminishing marginal product indicates that: 
A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
B. because of economies and diseconomies of scale a competitive firm’s long-run average total cost curve will be U-shaped.
C. the demand for goods produced by purely competitive industries is downsloping.
D. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.

3. Fixed cost is: 
A. the cost of producing one more unit of capital, say, machinery.
B. any cost which does not change when the firm changes its output.
C. average cost multiplied by the firm’s output.
D. usually zero in the short run.

4. If you owned a small farm, which of the following would be a fixed cost? 
A. harvest labor
B. hail insurance
C. fertilizer
D. seed

 Answer the next question(s) on the basis of the following cost data. Notice that fixed cost is $24.

  

 

5. Refer to the above data. The variable cost of producing 5 units is: 
A. $61.
B. $48.
C. $37.
D. $24.

 6. Refer to the above data. The average total cost of producing 3 units of output is: 
A. $14.
B. $12.
C. $13.50.
D. $16.

7. Refer to the above data. The average fixed cost of producing 3 units of output is: 
A. $8.
B. $7.40.
C. $5.50.
D. $6.

8. Refer to the above data. The marginal cost of producing the sixth unit of output is: 
A. $24.
B. $12.
C. $16.
D. $8.

9. Refer to the above data. The profit-maximizing output for this firm: 
A. is 3.
B. is 4.
C. is 5.
D. cannot be determined from the information given.

 

   

10. In the above diagram curves 1, 2, and 3 represent: 
A. average variable cost, marginal cost, and average fixed cost respectively.
B.  variable cost, fixed cost, and total cost respectively.
C.  fixed cost, variable cost, and total cost respectively.
D. marginal product, average variable cost, and average total cost respectively.

 Answer the next question(s) on the basis of the following cost data:

  

11. Refer to the above data. Total fixed cost is: 
A. $6.25.
B. $100.00.
C. $150.00.
D. $50.00.

12. Refer to the above data. The average total cost of five units of output is: 
A. $69.
B. $78.
C. $3.
D. $10.

13. Refer to the above data. The total cost of four units of output is: 
A. $260.
B. $77.50.
C. $310.
D. $215.

14. Refer to the above data. If the firm shut down and produced zero units of output, its total cost would be: 
A. zero.
B. $50.
C. $150.
D. $100.

 15. Refer to the above data. The marginal cost of the fifth unit of output is: 
A. $3.
B. $62.
C. $80.
D. $78.

 

16. Refer to the above data. The marginal cost curve would intersect the average variable cost curve at about: 
A. 2 units of output.
B. 4 units of output.
C. 6 units of output.
D. 7 units of output.

17. Refer to the above data. If the firm decided to increase its output from 6 to 7 units, its total costs would rise by: 
A. $87.14.
B. $80.00.
C. $6.67.
D. $120.00.

   

 18. Refer to the above diagram for a purely competitive producer. The lowest price at which the firm should produce (as opposed to shutting down) is: 
A. P1.
B. P2.
C. P3.
D. P4.

 

19. Refer to the above diagram for a purely competitive producer. The firm will produce at a loss at all prices: 
A. above P1.
B. above P3.
C. above P4.
D. between P2 and P3.

 

20. Refer to the above diagram for a purely competitive producer. If product price is P3
A. the firm will maximize profit at point d.
B. the firm will earn an economic profit.
C. economic profits will be zero.
D. new firms will enter this industry.

 

21. Refer to the above diagram for a purely competitive producer. The firm’s short-run supply curve is: 
A. the abcd segment and above on the MC curve.
B. the bcd segment and above on the MC curve.
C. the cd segment and above on the MC curve.
D. not shown.

 

 

22. The short-run supply curve of a purely competitive producer is based primarily on its: 
A. AVC curve.
B. ATC curve.
C. AFC curve.
D. MC curve.

Prime Paper Help
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.