True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered by current decisions. 2. It is possible for the economic profit and accounting profit to be equal to one another. 3. If Ed<1, an increase in price leads to higher revenue. 4. In the long run, at least some of the inputs should be variable. 5. Production is a transformation of resources in to goods and services.

True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered by current decisions. 2. It is possible for the economic profit and accounting profit to be equal to one another. 3. If Ed<1, an increase in price leads to higher revenue. 4. In the long run, at least some of the inputs should be variable. 5. Production is a transformation of resources in to goods and services.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 22RQ: What are diminishing marginal returns as they relate to costs?

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True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered by current decisions. 2. It is possible for the economic profit and accounting profit to be equal to one another. 3. If Ed<1, an increase in price leads to higher revenue. 4. In the long run, at least some of the inputs should be variable. 5. Production is a transformation of resources in to goods and services.
What happen to salaries and wages when you are in a production/manufacturing business that you want to operate on and on for many production cycles? a. it will either be a variable and/ or fix cost b. it becomes fixed cost c. It becomes variable cost d. it is an operating expense When there are 3 indifference curves in a graph, what ideal point is desired? a. a point where budget and satisfaction coincides with each other b. a point that is within the highest budget line c. point that is within the highest indifference curve d. the point where there is satisfaction yielded An example of business that is servicing a captive consumers as there is an absence of choices to serve them. a. Duopoly b. Monopsony c. Monopoly d. Oligopoly
__________ refers to the expenditures incurred by a firm to obtain the factors of production that are needed in the process of production. a. Cost of production b. Opportunity cost c. Selling cost d. Direct cost
Focusing only on transportation costs, if a firm pays both the costs of transporting inputs to its plant and the finished product to its customers, the profit maximizing plant location A. minimizes the sum of the two transportation costs. B. can be anywhere between the location of the inputs and of the customers because the firm pays both sets of transportation costs. C. must always be closer to the location of the inputs because transporting inputs is always more expensive than transporting finished products. D. None of the above answers are correct.
1.Costs that are "fixed": a. do not vary in the short run, but can change in the long run. b. will never change. c. vary with output, but not with resource prices. d. are better predictors of profit than variable costs.
1. Factors that increase productivity and explain each 2. Explain what is Short run and Long run Period by giving an example. 3. Describe common productivity killers and then find strategies to help eradicate the specific problems 4. What is Production Function? 5. What is Marginal Product? 6. Diminishing Marginal Product? 7. What are cost? 8. Explain total revenue, total cost, profit with a given example 9. Differentiate explicit and implicit costs 10. Differentiate Economic profit from accounting profit and example scenario 11. Why is Productivity important in economics? Give an example scenario 12. Describe Productivity in Economics. Give and example scenario 13. Using the economic definition of productivity can help us to determine how productive we really are. Explain it’s impact on wages, Role of technology and Relationships with consumption.
QUESTION 17 Whenever marginal revenues are higher than marginal costs, a. a firm should stop its production in order to maximize profits. b. a firm should decrease its production in order to maximize profits. c. a firm should increase its production in order to maximize profits. d. none of them are correct.
Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year. He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year. Downloads generated $130,000 in revenue during the first year. What is his accounting profit? Selected Answer: b. $37,000 Answers: a. $50,000 b. $37,000 c. $130,000 d. $43,000 e. $93,000
What is the optimization condition for economically efficient use of energy in productionin the short run?a. The marginal revenue product equals the price of the input.b. The total revenue from the production equals the total cost of the input.c. The average revenue from the production equals the price of the input.d. Revenue is maximized
3. What name is given to expenditures that must be made before production starts and that do not change regardless of the level of production? A. Marginal costs B. Diseconomies of scale C. Variable costs D. Fixed costs I
1. Maximizing profits means to ______. a. create a balance between seeking economic profits and seeking accounting profits b. reinvest accounting profits in an effort to increase production outputs in the long run c. increase the difference between what is given up for inputs and what is received for outputs d. operate in an output range in which the firm experiences constant returns to scale 2. A firm’s profits are calculated as the difference between ______. a. all the money received for its products and all that was spent to produce them b. the cost of producing the firm’s last unit and the firm’s average per-unit cost c. the cost of production in the short run and the cost of production in the long run d. the maximum market price accepted for the firm’s product and the cost to produce it 3. What is the term used to describe total revenues minus total explicit costs? a. marginal benefits b. economic profits c. accounting profits d. marginal costs 4. Which of the following must…
Σ 市 T F. apter 12 Saved Help Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? (Click to select) v c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) < Prev 6 of 8 68°F Mostly clear e here to search 查。 Profile Ball®1.0 F6 F4 F3 F2 F1 %23 $4 8. 4. 5. 3. B.