ECON 1580 Graded Quiz 1 with Detailed
Verified and 100% Accurate Solutions
At 36 units of labor, a firm finds that both average product of labor and marginal product
of labor equal 42. We can conclude that the average product curve at 36 units of labor is:
horizontal
Diminishing marginal returns for the first four units of a variable input is exhibited by the
marginal product sequence:
50, 40, 30, 20
Fixed costs include:
op management salaries
If the slope of the total product curve is decreasing, the slope of the total variable cost curve
is:
increasing
The marginal cost curve intersects the total variable cost curve at:
no point; the curves don't intersect
Average total cost is the ratio of:
total cost to the quantity of output
If marginal cost is equal to average total cost, then:
average total cost is at its minimum
, (Graph) In this exhibit (A Firm's Cost Curves) the curve labeled W represents the firm's
_______ curve.
average total cost
When an increase in the firm's output reduces its long-run average cost, it experiences:
economies of scale
The slope of a long-run average cost curve exhibiting diseconomies of scale is:
positive
Which of the following statements is false?
Select one:
a. The income effect of normal goods counters the substitution effect so the demand curve
is upsloping.
b. The income effect and the substitution effect reinforce each other when there are price
changes for a normal good.
c. The income effect represents the decrease in quantity demanded caused by the implicit
change in income due to a fall in the price of an inferior good but not for a normal good.
d. The substitution effect represents the change in quantity demanded solely due to a
change in the relative price of a good.
The income effect of normal goods counters the substitution effect so the demand curve is
upsloping
For a/an _______ good, an increase in income will lead to an increase in _______ .
normal; consumption
Verified and 100% Accurate Solutions
At 36 units of labor, a firm finds that both average product of labor and marginal product
of labor equal 42. We can conclude that the average product curve at 36 units of labor is:
horizontal
Diminishing marginal returns for the first four units of a variable input is exhibited by the
marginal product sequence:
50, 40, 30, 20
Fixed costs include:
op management salaries
If the slope of the total product curve is decreasing, the slope of the total variable cost curve
is:
increasing
The marginal cost curve intersects the total variable cost curve at:
no point; the curves don't intersect
Average total cost is the ratio of:
total cost to the quantity of output
If marginal cost is equal to average total cost, then:
average total cost is at its minimum
, (Graph) In this exhibit (A Firm's Cost Curves) the curve labeled W represents the firm's
_______ curve.
average total cost
When an increase in the firm's output reduces its long-run average cost, it experiences:
economies of scale
The slope of a long-run average cost curve exhibiting diseconomies of scale is:
positive
Which of the following statements is false?
Select one:
a. The income effect of normal goods counters the substitution effect so the demand curve
is upsloping.
b. The income effect and the substitution effect reinforce each other when there are price
changes for a normal good.
c. The income effect represents the decrease in quantity demanded caused by the implicit
change in income due to a fall in the price of an inferior good but not for a normal good.
d. The substitution effect represents the change in quantity demanded solely due to a
change in the relative price of a good.
The income effect of normal goods counters the substitution effect so the demand curve is
upsloping
For a/an _______ good, an increase in income will lead to an increase in _______ .
normal; consumption
