ECO 2023 Final Exam || with A+ Guaranteed Solutions.

Robert withdrew $100,000 from an account that paid 10 percent annual interest and used the funds to purchase real estate. After one year he sold the property for $120,000. Robert's economic profit on this deal was: a) $120,000 b) $100,000 c) $20,000 d) $10,000 correct answers D, $10,000 In the long run: a)some inputs are fixed. b) the firm is constrained in regard to what production decisions it can make. c) all inputs are variable. d) some inputs are variable and some are fixed. correct answers C, all inputs are variable When labor is the variable input, marginal product is defined as: a) output per worker. b) total output divided by the number of workers. c) the additional output produced by an additional worker. d) the total production of a group of workers. correct answers C, the additional output produced by an additional worker. The law of diminishing marginal productivity states that as more units of a variable input are added to a fixed input, the additional output the firm gets will: a) be constant. b) eventually decrease. c) eventually increase. d) always be positive. correct answers B, eventually decrease What is a production function? a) The relationship between a firm's profits and the technology it uses in its production processes. b) The relationship between a firm's output and its profits. c) The relationship between any combination of inputs and the maximum output obtained from that combination. d) The relationship between inputs and input costs. correct answers C, The relationship between any combination of inputs and the maximum output obtained from that combination. Average total cost is equal to: a) total cost divided by marginal cost. b) total variable cost divided by total fixed cost. c) fixed cost divided by total output. d) total cost divided by total output. correct answers D, total cost divided by total output. The increase in cost associated with a one unit increase in output is called: