ECON 528 Final || QUESTIONS WITH 100% ACCURATE SOLUTIONS!!
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Course
Econ 528
Institution
Econ 528
If, when a firm double all its inputs, its average cost of production decreases, then production displays correct answers economies of scale
The long-run average cost curve shows correct answers the lowest average cost of producing every level of output in the long run
All of the following st...
ECON 528 Final || QUESTIONS WITH 100%
ACCURATE SOLUTIONS!!
If, when a firm double all its inputs, its average cost of production decreases, then production
displays correct answers economies of scale
The long-run average cost curve shows correct answers the lowest average cost of producing
every level of output in the long run
All of the following statements are true of the minimum efficient scale except one. Which
one? correct answers an increase in the output level will increase profit
At the minimum efficient scale correct answers the firm has achieved the lowest possible
average cost of production
The president of Toyota's Georgetown plant was quoted as saying, "Demand for high
volumes saps your energy. Over a period of time, it eroded our focus [and] thinned out the
expertise and knowledge we painstakingly built up over the years." Based on this quote, what
must be true of the plant's average cost of production curve? correct answers it is upward
sloping
Economies of scope refers to the decrease in average total cost that can occur when a firm
correct answers produces more than one product
Producing 200 units of good Y and 100 units of good X in the same factory costs the firm
$50,000. In contrast, producing 200 units of good Y in one factory and 100 units of good X in
another factory costs the firm $75,000. So if the firm produces the two goods together, it
achieves: correct answers economies of scope
The marginal revenue product of labor for a firm correct answers will increase if the price of
the firm's output increases
is the firm's demand curve for labor
will decrease if the firm hires more labor
true or false:
Over time, more experienced workers will demand higher wage and therefore, will lead to an
increased in the cost of production for the producers. correct answers false
true or false:
When you produce more, average cost of production increases. correct answers false
A reason why a perfectly competitive firm's demand for labor curve slopes downward is that
correct answers in the short run, as more labor is hired, labor's marginal product falls because
of the law of diminishing returns
The term "derived demand" refers to correct answers the demand for a factor of production
that is derived from the demand for the good the factor produces
, The price of a factor of production that is in fixed supply is called correct answers economic
rent
Which of the following is a reason why a firm would experience diseconomies of scale?
correct answers as the size of the firm increases it becomes more difficult to coordinate the
operations of its manufacturing plants
The minimum efficient scale is correct answers level of operation where long run average
costs are lowest
Which of the following is not a reason why firms experience economies of scale? correct
answers as output increases, the managers can begin to have difficulty coordinating the
operations of their firms
Economies of scope exist between book publishing and magazine publishing if correct
answers the cost of publishing a magazine is lower for book publishers than for other firms
Learning curves represent the relationship between correct answers average variable cost and
the cumulative number of units produced
If the marginal product of labor is 2, the marginal product of capital is 4, the wage rate is $3,
the rental price of capital is $6, and the price of output is $1.50, then the firm should correct
answers none of the above is correct
Answer whether the following statement is true or false: If the marginal revenue product of
an input is less than the price of that input, the input is too expensive and the firm should stop
using that input and try to find some alternate inputs. correct answers false
true or false:
Economic rent for an input is higher if the input is abundant is supply correct answers false
A firm's demand curve for labor slopes downwards because correct answers of the law of
diminishing marginal returns
Economic rent is defined as correct answers the price of a factor of production that is fixed in
supply
Economies of scale exist as a firm increases its size in the long run because of all of the
following except correct answers as a firm expands its production, its profit margin, per unit
of output increases
Over the past twenty years, the number of small family farms has fallen significantly and in
their place there are fewer, but larger, farms owned by corporations. Which of the following
best explains this trend? correct answers economies of scale in farming
The president of Toyota's Georgetown plant was quoted as saying, "Demand for high
volumes saps your energy. Over a period of time, it eroded our focus [and] thinned out the
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