ECONOMIC COSTS, PROFITS, AND PRODUCTION long run is: that period of time in whic
ID: 1193928 • Letter: E
Question
ECONOMIC COSTS, PROFITS, AND PRODUCTION long run is: that period of time in which all factors of production are fixed. that period of time in which at least one factor of production is that period of time in which all factors of production are variable a time horizon of up to one year. · d. a time Firms encounter diminishing marginal product (diminishing returns) in the shrt ru a all inputs are fixed. d. at some point, firms must hire inferior labor to increase output. A firm deciding how many workers it should hire to manufacture kitchen countertops 2. because: at least one input is fixed. b. uts can only be varied proportionally using existing equipment is making a: b. short-run decision a. permanent decision. c. long-run decision. d. capital-usage decision. If total output is 40 units when 4 workers are employed and 48 units when 5 workers are employed, then: a. average product is 10 units when 4 workers are employed. the marginal product of the 5th worker is 8 units. average product must be falling because the marginal product of the 5th worker is lower than the average product for 4 workers. all of the above are true. b. c. d. Suppose 9 workers can repair 36 television sets per day. If a tenth worker is hired and the total number of repaired T.V. sets increases to 39, then: a. each worker repairs, on average, 4 T.V. sets per day when nine workers are hired b. the marginal product of the tenth worker is 3.9 T.V.sets. c. average product must be rising because the marginal product of the tenth worker 5. is greater than average product when nine workers are hired. All of the above are true d. Suppose ABC Corporation sold 2,000 units of output at a price of $2 per unit. If ABC Corporation's explicit cost to produce the 2,000 is $1,500 and its implicit cost to produ the 2,000 units is $2,000, then ABC Corp. has total revenue of- - , an accounting profit of , and an economic profit of a. $1,500; $0; $1,000 b. $4,000; $1,000; $O c. $4,000; $500; $2,500 d. $4,000; $2,500; $500 6. . - Chapter 9 Assignments
Explanation / Answer
1. C - that period of time in which all factors of production are variable.
2. B - at least one input is fixed.
3. B - long-run decision
4. C
5. B
6. D
7. D
8. B
9. C
10. D
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