Production and Costs MCQ
1. Constant returns to scale are features of a firm's technology that _______.
Answer
Correct Answer:
Keep average total cost constant as output increases
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2. During the progressive era, economic production shifted from ____ to ____.
Answer
Correct Answer:
Capital goods, consumer products.
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3. The __________ function will return the number of characters in a given string.
Answer
Correct Answer:
Length_Of()
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4. What do economists call the cost disadvantages that occur in an output range where LRATC rises as output expands?
Answer
Correct Answer:
Diseconomies of scale
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5. When LRATC falls as output expands, ______.
Answer
Correct Answer:
Economies of scale are present
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6. Business’s long-run average total cost curves are typically better than their short-run total cost curves because ______.
Answer
Correct Answer:
They can adjust more of their inputs in the long run
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7. When ATC falls it is primarily because ______ is declining.
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8. Why is average total cost usually relatively high at very low levels of output?
Answer
Correct Answer:
High average fixed costs
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9. When marginal product rises, ______ falls.
Answer
Correct Answer:
Marginal cost
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10. What is shown in the equation ΔTC/Δq?
Answer
Correct Answer:
Marginal cost
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11. What is average total cost?
Answer
Correct Answer:
A per-unit cost of production
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12. What are the two categories of short-run costs in a business?
Answer
Correct Answer:
Fixed costs and variable costs
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13. What do economists mean by production function?
Answer
Correct Answer:
The relationship between quantity of inputs and quantity of outputs
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14. One way an increase in workers can increase marginal product is that it ______.
Answer
Correct Answer:
Allows workers to specialize
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15. In terms of production, what do economists mean by the short run?
Answer
Correct Answer:
A period too brief for some production inputs to be varied
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16. What do economists call expenses that have been incurred and cannot be recovered?
Answer
Correct Answer:
Sunk costs
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17. Which of the following is TRUE?
Answer
Correct Answer:
An economic profit is less than an accounting profit.
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18. What are implicit costs?
Answer
Correct Answer:
Production costs that do not require an outlay of money
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19. Costs that vary with the level of output are variable costs.
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20. The total output of a good produced by the firm is the total product.
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21. The _____ of the firm’s fixed costs and variable costs is total cost.
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22. Sunk costs can’t be _____.
Answer
Correct Answer:
Recovered
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23. A period too brief for some production inputs to be varied is known as
Answer
Correct Answer:
Short Run
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24. ______ is the difference between total revenues and total costs
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25. _____ function is The relationship between the quantity of inputs and outputs produced
Answer
Correct Answer:
Production
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26. Marginal product is The change in total output of a good that results from a ______ change
Answer
Correct Answer:
One - unit
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27. Change in total costs resulting from a _____ in output is called Marginal cost
Answer
Correct Answer:
One - unit change
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28. A period over which all production inputs are variable is called
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29. The costs of production that do not require a monetary payment is ______
Answer
Correct Answer:
Implicit costs
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30. _______ Costs are the Costs that do not vary with the level of output.
Answer
Correct Answer:
Fixed costs
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31. Opportunity costs of production that require a monetary payment is known as
Answer
Correct Answer:
Explicit costs
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32. ______ falls as output increases in Economies of scale.
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33. Economic profits is Total revenues minus
Answer
Correct Answer:
Both of These
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34. ______ rises as output expands in Diseconomies of scale.
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35. Diminishing marginal product variable input ____, with other inputs ____.
Answer
Correct Answer:
Increases,Fixed
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36. Constant returns to scale are Returns that occur in an output range where _____ does not change.
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37. Average variable cost is ________ divided by output
Answer
Correct Answer:
Variable Cost
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38. Average total cost is ________ divided by output
Answer
Correct Answer:
Total Cost
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39. Average fixed cost is ________ divided by output
Answer
Correct Answer:
Fixed Cost
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40. Accounting profits are Total revenues minus total _______
Answer
Correct Answer:
Explicit Costs
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Microeconomics MCQs | Topic-wise
