1/At 10 units of output, the vertical distance between a firm\'s average total c

Question

1/At 10 units of output, the vertical distance between a firm's average total cost and average variable cost curves will be:
A/smaller than it is at 100 units of output.
B/the same as it is at 100 units of output.
C/larger than it is at 100 units of output.
D/impossible to state from the information given.

2/A firm that is able to more efficiently utilize by-products as it increases production in the long run is an example of:
A/economies of scale.
B/diseconomies of scale.
C/labor-intensive production.
D/capital-intensive production.

3/The slope of the total product curve is the average product curve.
A/True
B/False

4/If a firm's marginal cost at a certain level of output is $10, the change in _______ at that level of output must also be $10.
A/total variable cost
B/average total cost
C/average variable cost
D/average fixed cost

5/If your plant is operating in the negatively sloped portion of a long-run average cost curve, production exhibits:
A/higher wages.
B/economies of scale.
C/diseconomies of scale.
D/increased input prices.

6/Marginal product _______ over the range of _______ and _______ over the range of _______ .
A/falls; increasing marginal returns; rises; diminishing marginal returns
B/falls; decreasing total returns; rises; increasing total returns
C/rises; increasing marginal returns; rises; decreasing total returns
D/rises; increasing marginal returns; falls; diminishing marginal returns

Explanation / Answer

1/At 10 units of output, the vertical distance between a firm's average total cost and average variable cost curves will be:
A/smaller than it is at 100 units of output.
B/the same as it is at 100 units of output.
C/larger than it is at 100 units of output.
D/impossible to state from the information given.

2/A firm that is able to more efficiently utilize by-products as it increases production in the long run is an example of:
A/economies of scale.
B/diseconomies of scale.
C/labor-intensive production.
D/capital-intensive production.

3/The slope of the total product curve is the average product curve.
A/True
B/False

4/If a firm's marginal cost at a certain level of output is $10, the change in _______ at that level of output must also be $10.
A/total variable cost
B/average total cost
C/average variable cost
D/average fixed cost

5/If your plant is operating in the negatively sloped portion of a long-run average cost curve, production exhibits:
A/higher wages.
B/economies of scale.
C/diseconomies of scale.
D/increased input prices.

6/Marginal product _______ over the range of _______ and _______ over the range of _______ .
A/falls; increasing marginal returns; rises; diminishing marginal returns
B/falls; decreasing total returns; rises; increasing total returns
C/rises; increasing marginal returns; rises; decreasing total returns
D/rises; increasing marginal returns; falls; diminishing marginal returns

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