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DEC5114 Tutorial 08
21 minutes ago by
yvonne_lelee_06247
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  • Question 1
    30 seconds
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    Q.

    Economists assume that the typical person who starts her own business does so with the intention of

    answer choices

    donating the profits from her business to charity.

    capturing the highest number of sales in her industry.

    maximizing profits.

    minimizing costs.

  • Question 2
    30 seconds
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    Q.

    Economists assume that the goal of the firm is to maximize total

    answer choices

    revenue.

    profits.

    costs.

    satisfaction.

  • Question 3
    30 seconds
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    Q.

    If Danielle sells 300 wrist bands for $0.50 each, her total revenues are

    answer choices

    $150.

    $299.50.

    $300.

    $600.

  • Question 4
    30 seconds
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    Q.

    The Wax Works sells 400 candles at a price of $10 per candle. The Wax Works' total costs for producing 400 candles are $500. The Wax Works' economic profit is

    answer choices

    -$100.

    $3,500.

    $4,500.

    indeterminate from this information.

  • Question 5
    30 seconds
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    Q.

    Scenario 8.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year.


    Refer to Scenario 8.1. During the year your economic costs were

    answer choices

    $40,000.

    $60,000.

    $100,000.

    $130,000.

  • Question 6
    30 seconds
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    Q.

    Scenario 8.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year.

    Refer to Scenario 8.1. A yearly normal return for your computer software firm would be

    answer choices

    $20,000.

    $40,000.

    $60,000.

    $100,000.

  • Question 7
    30 seconds
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    Q.

    Scenario 8.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year.

    Refer to Scenario 8.1. Your accounting profit last year was

    answer choices

    $10,000.

    $30,000.

    $50,000.

    $60,000.

  • Question 8
    30 seconds
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    Q.

    Scenario 8.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year.

    Refer to Scenario 8.1. Your economic profit last year was

    answer choices

    -$40,000.

    -$10,000.

    $10,000.

    $30,000.

  • Question 9
    30 seconds
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    Q.

    When adding another unit of labor leads to an increase in output that is smaller than the increases in output that resulted from adding previous units of labor, the firm is experiencing

    answer choices

    diminishing labor.

    diminishing output.

    diminishing marginal product.

    negative marginal product.

  • Question 10
    30 seconds
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    Q.

    Refer Figure 8.1. The marginal product of the second worker is ________ lawns mowed.

    answer choices

    3

    5

    8

    11

  • Question 11
    30 seconds
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    Q.

    Refer to Figure 8.1. The average product with two workers is ________ lawns mowed.

    answer choices

    4

    5

    5.5

    11

  • Question 12
    30 seconds
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    Q.

    Refer to Figure 8.1. The marginal product of the first worker is ________ lawns moved.

    answer choices

    3

    4

    5

    11

  • Question 13
    30 seconds
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    Q.

    Refer to Figure 8.1. The average product of the first worker is ________ lawns moved.

    a. 3

    b. 4

    c. 5

    d. 11

    answer choices

    3

    4

    5

    11

  • Question 14
    30 seconds
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    Q.

    Refer to Table 8.1. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. If the factory produces at a rate of 70 chairs per hour and operates 8 hours per day, what is the factory’s total labor cost per day?

    answer choices

    $72

    $112

    $576

    $616

  • Question 15
    30 seconds
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    Q.

    Refer to Table 8.1. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is$20 per day regardless of the number of chairs produced. What is the total daily cost of producing at a rate of 55 chairs per hour if the factory operates 8 hours per day?

    answer choices

    $480

    $576

    $520

    $616

  • Question 16
    30 seconds
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    Q.

    Refer to Table 8.1. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. If the factory produces at a rate of 35 chairs per hour, what is the total labor cost per hour?

    answer choices

    $40

    $48

    $384

    $424

  • Question 17
    30 seconds
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    Q.

    Refer to Table 8.1. Assume the Wooden Chair Factory currently employs 5 workers. What is the marginal product of labor when the factory adds a 6th worker?

    answer choices

    5 chairs per hour

    15 chairs per hour

    25 chairs per hour

    70 chairs per hour

  • Question 18
    30 seconds
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    Q.

    Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 181 units of output per day when 16 workers are hired, holding other inputs fixed. The marginal product of the 16th worker is

    answer choices

    10 units of output.

    11 units of output.

    16 units of output.

    181 units of output.

  • Question 19
    30 seconds
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    Q.

    Diseconomies of scale occur when

    answer choices

    average fixed costs are falling.

    average fixed costs are constant.

    long-run average total costs rise as output increases.

    long-run average total costs fall as output increases.

  • Question 20
    30 seconds
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    Q.

    Firms may experience diseconomies of scale when

    answer choices

    they are too small to take advantage of specialization.

    large management structures are bureaucratic and inefficient.

    there are too few employees, and managers do not have enough to do.

    average fixed costs begin to rise again.

  • Question 21
    30 seconds
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    Q.

    Refer to Figure 8.2. The three average total cost curves on the diagram labeled ATC1, ATC2, and ATC3 most likely correspond to three different

    answer choices

    time horizons.

    products.

    firms.

    factory sizes.

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