Chapter 13 Questions

____ 1. Average total cost is increasing whenever

a total cost is increasing.
.
b marginal cost is increasing.
.
c marginal cost is less than average total cost.
.
d marginal cost is greater than average total cost.
.

Table 13-8
Quantity Fixed Variable
of Output Cost Cost
0 $20 $0
1 $20 $10
2 $20 $40
3 $20 $80
4 $20 $130
5 $20 $200
6 $20 $300

____ 2. Refer to Table 13-8. What is the average variable cost of producing 5 units of output?
a $4
.
b $5
.
c $40
.
d $44
.

____ 3. Economists normally assume that the goal of a firm is to

a maximize its total revenue.
.
b maximize its profit.
.
c minimize its explicit costs.
.
d minimize its total cost.
.

____ 4. Assume a firm in a competitive industry is producing 800 units of output, and it sells each unit for $6. Its
average total cost is $4. Its profit is
a $-1,600.
.
b $1,600.
 .
c $3,200.
.
d $8,000.
.
Figure 13-10

____ 5. Refer to Figure 13-10. The firm experiences constant returns to scale if it changes its level of output
from
a Q1 to Q2.
.
b Q2 to Q4.
.
c Q1 to Q3.
.
d Q4 to Q5.
.

____ 6. Katherine gives piano lessons for $20 per hour. She also grows flowers, which she arranges and sells at
the local farmer’s market. One day she spends 5 hours planting $50 worth of seeds in her garden. Once
the seeds have grown into flowers, she can sell them for $150 at the farmer’s market. Katherine’s
accounting profits are
a $100, and her economic profits are $100.
.
b $100, and her economic profits are $0.
.
c $0, and her economic profits are $100.
.
d $0, and her economic profits are $-100.
.
Table 13-5
Number of Output
Workers
0 0
 1 1,000
2 2,000
3 2,700
4 3,200
5 3,500
6 3,600

____ 7. Refer to Table 13-5. Diminishing marginal product begins with the addition of the
a second worker.
.
b third worker.
.
c fourth worker.
.
d fifth worker.
.

Table 13-11
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled
children in public school districts. The owner rents several small rooms in an office building in the
suburbs for $600 a month and has leased computer equipment that costs $480 a month.

Output
(Instructional Average Average Average
Modules Fixed Variable Total Fixed Variable Total Marginal
per Month) Costs Costs Cost Cost Cost Cost Cost
0 $1,080
1 $1,080 $ 400 $1,480 $400
2 $965 $450
3 $1,350 $2,430
4 $1,900 $475
5 $2,500 $216
6 $4,280 $700
7 $4,100
8 $5,400 $135
9 $7,300
10 $10,880 $980

____ 8. Refer to Table 13-11. What is the marginal cost of creating the tenth instructional module in a given
month?
a $900
.
b $1,250
.
c $2,500
.
d $3,060
.
____ 9. In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40
units. Firm A exhibits
a diseconomies of scale because total cost is rising as output rises.
.
b constant returns to scale because average total cost is constant as output rises.
.
c diseconomies of scale because average total cost is rising as output rises.
.
d economies of scale because average total cost is falling as output rises.
.

____ 10. Price discrimination

a forces monopolies to charge a lower price as a result of government regulation.
.
b is an attempt by a monopoly to prevent some customers from purchasing its product by
. charging a high price.
c is an attempt by a monopoly to increases its profit by selling the same good to different
. customers at different prices.
d increases the consumer surplus associated with a monopolistic market.
.
Table 13-12
Betty’s Bakery
Quantity Average Average Average
of Fixed Variable Total Fixed Variable Total Marginal
cakes Cost Cost Cost Cost Cost Cost Cost
1 $13 $38
2 $28
3 $70
4 $64
5 $110
6 $108
7 $133
8 $185

____ 11. Refer to Table 13-12. What is the variable cost of producing 8 cakes at Betty’s Bakery?
a $120
.
b $140
.
c $155
.
d $160
.
____ 12. The term economists use to describe a situation in which the economy’s overall price level is rising is
a growth.
.
b inflation.
 .
c recession.
.
d expansion.
.

____ 13. Refer to Figure 13-1. Which of the following could explain why the total product curve would shift from
TP2 to TP1?
a There is additional capital equipment available to the firm.
.
b Labor skills have become rusty and outdated in the firm.
.
c The firm has developed improved production technology.
.
d The firm is now receiving a higher price for its product.
.
Figure 13-1

____ 14. A firm that shuts down temporarily has to pay

a its variable costs but not its fixed costs.
.
b its fixed costs but not its variable costs.
.
c both its variable costs and its fixed costs.
.
d neither its variable costs nor its fixed costs.
.
____ 15. Which of the following is an example of an implicit cost?
(i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall
Street brokerage firm
(ii) interest paid on the firm's debt
(iii) rent paid by the firm to lease office space

a (ii) and (iii) only

.
 b (i) and (iii) only
.
c (i) only
.
d (iii) only
.
____16.Economic profit
a will never exceed accounting profit.
.
b is most often equal to accounting profit.
.
c is always at least as large as accounting profit.
.
d is a less complete measure of profitability than accounting profit.
.

Scenario 13-2
Chelsea wants to start her own Christmas ornament business. She can purchase a suitable factory that
costs $100,000. Chelsea currently has $150,000 in the bank earning 3 percent interest per year.

____ 17. Refer to Scenario 13-2. Suppose Chelsea purchases the factory using her own money. What is Chelsea’s
annual implicit opportunity cost of purchasing the factory?
a $2,000
.
b $3,000
.
c $4,500
.
d $5,000
.

Scenario 13-4
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws
$50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on
his savings account is 2%.

____ 18. Refer to Scenario 13-4. Abdul’s implicit cost of capital is

a $8,000.
.
b $4,000.
.
c $2,000.
.
d $1,000.
.
____ 19. On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is
able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is
consistent with the property of diminishing marginal product?
a The farmer is able to produce 5,600 bushels of wheat when he hires 4 workers.
 .
b The farmer is able to produce 5,800 bushels of wheat when he hires 4 workers.
.
c The farmer is able to produce 6,000 bushels of wheat when he hires 4 workers.
.
d Any of the above could be correct.
.
____ 20. When the marginal product of an input declines as the quantity of that input increases, the production
function exhibits
a increasing marginal product.
.
b diminishing marginal product.
.
c diminishing total product.
.
d Both b and c are correct.
.

Table 13-4
Charles’s Math Tutoring
Number of Output (number
Workers of students tutored
per week)
0 0
1 20
2 45
3 60
4 70

____ 21. Refer to Table 13-4. Charles’s math tutoring company experiences diminishing marginal productivity
with the addition of the
a first worker.
.
b second worker.
.
c third worker.
.
d fourth worker.
.
____ 22. Which of the following statements about a production function is correct for a firm that uses labor to
produce output?
a The production function depicts the relationship between the quantity of labor and the
. quantity of output.
b The slope of the production function measures marginal product.
.
c The slopes of the production function and the total cost curve are inversely related; if one
. is increasing, the other is decreasing.
d All of the above are correct.
.
____ 23. Suppose Jan started up a small lemonade stand business last month. Variable costs for Jan's lemonade
stand now include the cost of
a building the lemonade stand.
.
b hiring an artist to design a logo for her sign.
.
c lemons and sugar.
.
d All of the above are correct.
.
____ 24. When a firm is able to put idle equipment to use by hiring another worker,
a variable costs will rise.
.
b variable costs will fall.
.
c fixed costs will fall.
.
d both fixed costs and variable costs will rise.
.
____ 25. Tom’s Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $80
for 10,000 tents. At that level of output, the firm's average total costs equal
a $80
.
b $90
.
c $100
.
d $110
.

Table 13-7
The Flying Elvis Copter Rides
Quantity Total Fixed Variable Marginal Average Average Average
Cost Cost Cost Cost Fixed Variable Total
Cost Cost Cost
0 $50 $50 $0 -- -- -- --
1 $150 A B C D E F
2 G H I $120 J K L
3 M N O P Q $120 R

____ 26. Refer to Table 13-7. What is the value of R?

a $16.67
.
b $50
.
c $136.67
.
d $360
 .

Table 13-8
Quantity Fixed Variable
of Output Cost Cost
0 $20 $0
1 $20 $10
2 $20 $40
3 $20 $80
4 $20 $130
5 $20 $200
6 $20 $300

____ 27. Refer to Table 13-8. What is the average fixed cost of producing 5 units of output?
a $4
.
b $5
.
c $40
.
d $44
.

Scenario 13-16
A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for
$6. In producing the 7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,000.

____ 28. Refer to Scenario 13-16. Suppose the owner of the business had an offer to work for another firm for
$25,000. The firm's accounting profit for the year was
a $-28,000.
.
b $-25,000
.
c $-3,000.
.
d $17,000.
.
____ 29. Marginal cost tells us the
a value of all resources used in a production process.
.
b marginal increment to profitability when price is constant.
.
c amount by which total cost rises when output is increased by one unit.
.
d amount by which output rises when labor is increased by one unit.
.
____ 30. If Franco's Pizza Parlor knows that the marginal cost of the 500th pizza is $3.50 and that the average total
cost of making 499 pizzas is $3.30, then
 a average total costs are rising at Q = 500.
.
b average total costs are falling at Q = 500.
.
c total costs are falling at Q = 500.
.
d average variable costs must be falling.
.
____ 31. If marginal cost is equal to average total cost, then
a marginal cost is minimized.
.
b average total cost is minimized.
.
c average variable cost is minimized.
.
d marginal cost is zero.
.
____ 32. Economies of scale arise when
a an economy is self-sufficient in production.
.
b individuals in a society are self-sufficient.
.
c fixed costs are large relative to variable costs.
.
d workers are able to specialize in a particular task.
.
____ 33. In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40
units. Firm A exhibits
a diseconomies of scale because total cost is rising as output rises.
.
b constant returns to scale because average total cost is constant as output rises.
.
c diseconomies of scale because average total cost is rising as output rises.
.
d economies of scale because average total cost is falling as output rises.
.
____ 34. Firms may experience diseconomies of scale when
a they are too small to take advantage of specialization.
.
b large management structures are bureaucratic and inefficient.
.
c there are too few employees, and managers do not have enough to do.
.
d average fixed costs begin to rise again.
.

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.
____ 35. Refer to Figure 13-9. At output levels greater than N, the firm experiences
a economies of scale.
.
b constant returns to scale.
.
c diseconomies of scale.
.
d minimum efficient scale.
.

Figure 13-10

____ 36. Refer to Figure 13-10. The firm experiences constant returns to scale if it changes its level of output
from
a Q1 to Q2.
.
b Q2 to Q4.
 .
c Q1 to Q3.
.
d Q4 to Q5.
.

Table 13-15
Consider the following table of long-run total cost for four different firms:

Quantity 1 2 3 4 5 6 7
Firm 1 $210 $340 $490 $660 $850 $1,060 $1,290
Firm 2 $180 $350 $510 $660 $800 $930 $1,050
Firm 3 $120 $250 $390 $540 $700 $870 $1,050
Firm 4 $150 $300 $450 $600 $750 $900 $1,050

____ 37. Refer to Table 13-13. Which firm has economies of scale over the entire range of output?
a Firm 1 only
.
b Firms 1 and 2 only
.
c Firm 2 only
.
d Firm 3 only
.

____ 38. Economists normally assume that the goal of a firm is to

(i) sell as much of its product as possible.
(ii) set the price of the product as high as possible.
(iii) maximize profit.

a. (i) and (ii) only

b. (ii) and (iii) only
c. (iii) only
d. (i), (ii), and (iii)

____ 39. When a firm is making a profit-maximizing production decision, which of the following principles of
economics is likely to be most important to the firm's decision?
a. The cost of something is what you give up to get it.
b. A country's standard of living depends on its ability to produce goods and services.
c. Prices rise when the government prints too much money.
d. Governments can sometimes improve market outcomes.

____ 40. Total cost is the

a. amount a firm receives for the sale of its output.
b. fixed cost less variable cost.
c. market value of the inputs a firm uses in production.
 d. quantity of output minus the quantity of inputs used to make a good.

Scenario 13-10
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30
minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for
$20 each.

____ 41. Refer to Scenario 13-10. An accountant would calculate the total cost for one birdhouse to be
a. $5.
b. $8.
c. $9.
d. $13.

____ 42. The marginal product of labor can be defined as the change in
a. profit divided by the change in labor.
b. output divided by the change in labor.
c. labor divided by the change in output.
d. labor divided by the change in total cost.

Table 13-4
Charles’s Math Tutoring
Number of Output (number
Workers of students tutored
per week)
0 0
1 20
2 45
3 60
4 70

____ 43. Refer to Table 13-4. Charles’s math tutoring company experiences diminishing marginal productivity
with the addition of the
a. first worker.
b. second worker.
c. third worker.
d. fourth worker.

____44.If a firm produces nothing, which of the following costs will be zero?
a. total cost
b. fixed cost
c. opportunity cost
d. variable cost
 Table 13-7
The Flying Elvis Copter Rides
Quantity Total Fixed Variable Marginal Average Average Average
Cost Cost Cost Cost Fixed Variable Total
Cost Cost Cost
0 $50 $50 $0 -- -- -- --
1 $150 A B C D E F
2 G H I $120 J K L
3 M N O P Q $120 R

____ 45. Refer to Table 13-7. What is the value of P?

a. $50
b. $140
c. $360
d. $410

____ 46. Refer to Table 13-7. What is the value of Q?

a. $16.67
b. $50
c. $136.67
d. $360

Table 13-9
Measures of Cost for Very Brady Poster Factory
Quantity Variable Total Fixed
of Posters Costs Costs Costs
0 $10
1 $1
2 $3 $13
3 $6 $16
4 $10
5 $25
6 $21 $10

____ 47. Refer to Table 13-9. What is the marginal cost of producing the 1st poster?
a. $1.00
b. $10.00
c. $11.00
d. It can't be determined from the information given.
____ 48. A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output,
its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the
total cost of producing 101 units?
a. $46.53
b. $800
c. $4,800
d. $5,300

Scenario 13-17
Suppose that a given firm experiences decreasing marginal product of labor with the addition of each
worker regardless of the current output level.

____ 49. Refer to Scenario 13-17. Average fixed cost will be

a. rising at all points.
b. falling at all points.
c. U-shaped.
d. constant.

Figure 13-5

____ 50. Refer to Figure 13-5. Which curve is most likely to represent average total cost?
a. A
b. B
c. C
d. D

____ 51. When marginal cost is less than average total cost,
a. marginal cost must be falling.
b. average variable cost must be falling.
c. average total cost is falling.
d. average total cost is rising.

____ 52. When average cost is greater than marginal cost, marginal cost must be
a. rising.
b. falling.
c. constant.
d. The direction of change in marginal cost cannot be determined from this information.

____ 53. In the long run,

a. inputs that were fixed in the short run remain fixed.
b. inputs that were fixed in the short run become variable.
 c. inputs that were variable in the short run become fixed.
d. variable inputs are rarely used.

____ 54. When a firm’s long-run average total costs do not vary as output increases, the firm exhibits
a. economies of scale.
b. constant returns to scale.
c. diseconomies of scale.
d. an efficient use of resources.

____ 55. Diseconomies of scale occur when

a. average fixed costs are falling.
b. average fixed costs are constant.
c. long-run average total costs rise as output increases.
d. long-run average total costs fall as output increases.

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.

____ 56. Refer to Figure 13-9. Which of the curves is most likely to characterize the short-run average total cost
curve of the smallest factory?
a. ATCA
b. ATCB
c. ATCC
d. ATCD

Figure 13-10

____ 57. Refer to Figure 13-10. The firm experiences diseconomies of scale if it changes its level of output from
a. Q1 to Q2.
b. Q2 to Q3.
c. Q3 to Q4.
d. Q4 to Q5.

Table 13-15
Consider the following table of long-run total cost for four different firms:

Quantity 1 2 3 4 5 6 7
Firm 1 $210 $340 $490 $660 $850 $1,060 $1,290
Firm 2 $180 $350 $510 $660 $800 $930 $1,050
Firm 3 $120 $250 $390 $540 $700 $870 $1,050
 Firm 4 $150 $300 $450 $600 $750 $900 $1,050

____ 58. Refer to Table 13-13. Which firm has diseconomies of scale over the entire range of output?
a. Firm 1 only
b. Firms 1 and 2 only
c. Firm 3 only
d. Firm 4 only

____ 59. Refer to Table 13-13. Firm 1's efficient scale occurs at what quantity?
a. 2
b. 3
c. 4
d. 5
Chapter 13 Answers
Answer Section

MULTIPLE CHOICE

1. ANS: D PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Cost curves
MSC: Interpretive
2. ANS: C PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average variable cost
MSC: Analytical
3. ANS: B PTS: 1 DIF: 1 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Profit maximization
MSC: Definitional
4. ANS: B PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Diseconomies of scale
MSC: Definitional
5. ANS: B PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Constant returns to scale
MSC: Analytical
6. ANS: B PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Economic profit | Accounting profit
MSC: Analytical
7. ANS: B PTS: 1 DIF: 2 REF: 13-2
NAT: Analytic LOC: Costs of production TOP: Diminishing marginal product
MSC: Analytical
8. ANS: C PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Marginal cost
MSC: Applicative
9. ANS: B PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Constant returns to scale
MSC: Analytical
10. ANS: C PTS: 1 DIF: 2 REF: 13-2
NAT: Analytic LOC: Costs of production TOP: Diminishing marginal product
MSC: Interpretive
11. ANS: D PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Variable costs
MSC: Applicative
12. ANS: B PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Constant returns to scale
MSC: Interpretive
13. ANS: B PTS: 1 DIF: 2 REF: 13-2
NAT: Analytic LOC: Costs of production TOP: Production function
MSC: Interpretive
14. ANS: B PTS: 1 DIF: 2 REF: 13-3
 NAT: Analytic LOC: Costs of production TOP: Average fixed cost
MSC: Applicative
15. ANS: C PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Implicit costs
MSC: Interpretive
16. ANS: A PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Economic profit
MSC: Interpretive
17. ANS: B PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Implicit costs | Opportunity cost
MSC: Applicative
18. ANS: D PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Implicit costs
MSC: Analytical
19. ANS: A PTS: 1 DIF: 2 REF: 13-2
NAT: Analytic LOC: Costs of production TOP: Diminishing marginal product
MSC: Analytical
20. ANS: B PTS: 1 DIF: 2 REF: 13-2
NAT: Analytic LOC: Costs of production TOP: Diminishing marginal product
MSC: Definitional
21. ANS: C PTS: 1 DIF: 3 REF: 13-2
NAT: Analytic LOC: Costs of production TOP: Diminishing marginal product
MSC: Analytical
22. ANS: D PTS: 1 DIF: 3 REF: 13-2
NAT: Analytic LOC: Costs of production
TOP: Production function | Total-cost curve MSC: Interpretive
23. ANS: C PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Variable costs
MSC: Interpretive
24. ANS: A PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Variable costs
MSC: Interpretive
25. ANS: D PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average total cost
MSC: Applicative
26. ANS: C PTS: 1 DIF: 3 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average total cost
MSC: Analytical
27. ANS: A PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average fixed cost
MSC: Analytical
28. ANS: C PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Accounting profit
MSC: Applicative
29. ANS: C PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Marginal cost
MSC: Interpretive
30. ANS: A PTS: 1 DIF: 3 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Marginal cost | Average total cost
 MSC: Analytical
31. ANS: B PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Cost curves
MSC: Interpretive
32. ANS: D PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Economies of scale
MSC: Interpretive
33. ANS: B PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Constant returns to scale
MSC: Analytical
34. ANS: B PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Diseconomies of scale
MSC: Interpretive
35. ANS: C PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Diseconomies of scale
MSC: Analytical
36. ANS: B PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Constant returns to scale
MSC: Analytical
37. ANS: C PTS: 1 DIF: 3 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Economies of scale
MSC: Applicatie
38. ANS: C PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Profit maximization
MSC: Interpretive

39. ANS: A PTS: 1 DIF: 2 REF: 13-1

NAT: Analytic LOC: Costs of production TOP: Profit maximization
MSC: Interpretive

40. ANS: C PTS: 1 DIF: 2 REF: 13-1

NAT: Analytic LOC: Costs of production TOP: Total cost
MSC: Definitional

41. ANS: A PTS: 1 DIF: 2 REF: 13-1

NAT: Analytic LOC: Costs of production TOP: Explicit costs
MSC: Applicative

42. ANS: B PTS: 1 DIF: 2 REF: 13-2

NAT: Analytic LOC: Costs of production TOP: Marginal product
MSC: Definitional

43. ANS: C PTS: 1 DIF: 3 REF: 13-2

NAT: Analytic LOC: Costs of production TOP: Diminishing marginal product
MSC: Analytical

44. ANS: D PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Variable costs
MSC: Interpretive
45. ANS: B PTS: 1 DIF: 3 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Marginal cost
MSC: Analytical

46. ANS: A PTS: 1 DIF: 3 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Marginal cost
MSC: Analytical

47. ANS: A PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Marginal cost
MSC: Applicative

48. ANS: C PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Marginal cost
MSC: Analytical

49. ANS: B PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Cost curves | Average fixed cost
MSC: Analytical

50. ANS: C PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Cost curves | Average total cost
MSC: Interpretive

51. ANS: C PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Cost curves
MSC: Interpretive

52. ANS: D PTS: 1 DIF: 2 REF: 13-3

NAT: Analytic LOC: Costs of production TOP: Cost curves
MSC: Analytical

53. ANS: B PTS: 1 DIF: 2 REF: 13-4

NAT: Analytic LOC: Costs of production TOP: Long run
MSC: Interpretive

54. ANS: B PTS: 1 DIF: 2 REF: 13-4

NAT: Analytic LOC: Costs of production TOP: Constant returns to scale
MSC: Interpretive

55. ANS: C PTS: 1 DIF: 2 REF: 13-4

NAT: Analytic LOC: Costs of production TOP: Diseconomies of scale
MSC: Definitional

56. ANS: A PTS: 1 DIF: 1 REF: 13-4

NAT: Analytic LOC: Costs of production TOP: Average total cost
MSC: Analytical

57. ANS: D PTS: 1 DIF: 2 REF: 13-4

NAT: Analytic LOC: Costs of production TOP: Diseconomies of scale
MSC: Analytical
58. ANS: C PTS: 1 DIF: 3 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Diseconomies of scale
MSC: Applicative

59. ANS: B PTS: 1 DIF: 3 REF: 13-4

NAT: Analytic LOC: Costs of production TOP: Efficient scale
MSC: Applicative