Econ 112 Exam Questions And Answers Verified 100% Correct

Econ 112 Exam Questions And Answers Verified 100% Correct Based on the production data for Pat's Pizza Parlor in the above table, the marginal product of the 4th worker is ________ pizzas. a) 5 b) 10 c) 8 d) 45 -ANSWER C At that amount of output where diminishing marginal returns first sets in? a) Marginal product will begin to decline. b) Average product will begin to decline. c) Total product will begin to decline. d) All of the above -ANSWER A "Diminishing marginal returns" refer to a situation in which the... a) Marginal product of the last worker hired is less than the marginal product of the previous worker hired. b) Marginal cost of the last worker hired is less than the marginal cost of the previous worker hired. c) Average cost of the last worker hired is less than the average cost of the previous worker hired. d) Average product of the last worker hired is less than the average product of the previous worker hired. -ANSWER A The law of diminishing returns states that as... a) The size of a plant increases, the firm's fixed cost decreases. b) The size of a plant increases, the firm's fixed cost increases. c) A firm uses more of a variable input, given the quantity of fixed inputs, the firm's average total cost will decrease eventually. d) A firm uses more of a variable input, given the quantity of fixed inputs, the marginal product of the variable input eventually diminishes -ANSWER C Labor Quantity (workers) (T shirts per day) 0 0 1 10 2 22 3 30 4 34 5 35 The table above shows some data that describe Tom's T-Shirts' total product when Tom's has 1 sewing machine. Diminishing marginal returns begin when the ________ is employed. a) Fifth worker b) Fourth worker c) Second worker d) Third worker -ANSWER D A firm's total cost (TC) equals the sum of its fixed cost plus its A.) Sunk cost plus its variable cost plus its marginal cost. B.) variable cost plus its marginal cost. C. variable cost. D.marginal cost. -ANSWER C. Total cost is equal to the A.)product of the marginal cost multiplied by the average total cost. B.)sum of the average fixed cost and the average variable cost. C.)sum of the total fixed cost and the total variable cost. D.)difference between the average variable cost and the average fixed cost. -ANSWER C Total fixed cost is the sum of all A.)costs associated with the production of goods. B.)explicit costs. C.)costs of the firm's fixed inputs. D.)costs that rise as output increases. -ANSWER c. A firm's total fixed cost (TFC) is defined as a cost A. that is dependent on marginal cost. B. that does not change as output changes. C. it is certain ("fixed") that the firm must pay. D. that is paid in only the long run. -ANSWER B.) . B.)total cost C.)marginal cost D.)fixed cost -ANSWER D. Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost? A.$2,400 B.$2,000 C.$1,600 D.$800 -ANSWER c. Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's average total cost? A. $8 B. $10 YourANSWER is correct.C. $12 D. $2 -ANSWER B. Marginal cost is equal to