Glendale GBS 205 –  marginal product

Subject: General Questions    / General General Questions
Question

1 of 20
If marginal product is zero:
total product is also zero.
average product is also zero.
total output is maximized.
average product is constant.

Question

2 of 20
As the quantity of labor increases while the amount of other inputs are held constant, marginal product of labor will:
increase continuously.
decrease continuously.
initially decrease and then increase.
initially increase and then decrease.

Question

3 of 20
A firm’s short-run costs contain
only variable costs.
only fixed costs.
both variable and fixed costs.
only opportunity costs.

Question

4 of 20
If in the short run total product is decreasing as more workers are hired, the marginal physical product is:
increasing.
zero.
negative.
positive.

Question

5 of 20
Which of the following istrueabout the long run?
All resources are variable.
All resources are fixed.
At least one resource is fixed.
None of the above

Question

6 of 20
In economics, a fixed cost is a cost that
is present only in the short run.
goes up as the level of output goes up.
goes down as the level of output goes up.
does not vary with the level of output.

Question

7 of 20

The image is a curve that starts at zero and heads up and back down like a rainbow
Refer to the above figure. The curve reflects
the law of diminishing marginal product in labor.
the law of increasing marginal product in labor.
the law of diminishing marginal product in capital.
the law of increasing marginal product in capital.

Question

8 of 20
The focus of firm decisions in the short run is primarily on
variable inputs.
capital investment.
plant size.
economies of scale.

Question

9 of 20
If the price of labor is constant and a firm experiences diminishing marginal product, its:
marginal costs will increase.
marginal costs will decrease.
fixed costs will increase.
total costs will decrease.

Question

10 of 20
Fixed costs are
costs that never change.
costs that a firm incurs, even when output is zero.
not actually costs since they do not affect the decisions of a firm.
costs that increase at a constant rate when output increases.

Question

11 of 20
Production functions indicate the relationship between
factor costs and output prices.
factor inputs and the quantity of output.
the value of inputs and average costs.
factor inputs and factor prices.

Question

12 of 20
A negative value for the marginal physical product would indicate that:
the company has not yet reached the point of saturation.
total output increased by a significant amount.
total output decreased when the extra unit of the variable input was added.
total output increased, but the increase was very small.

Question

13 of 20
Average physical product is calculated by dividing total product by the
amount of variable and fixed inputs employed.
quantity of the variable input.
quantity of the fixed input.
production function.

Question

14 of 20
Mr. James’ company produces candy bars. Which isnota variable input for this firm?
Sugar
Assembly-line workers
The big chocolate-stirring machines
Packaging materials

Question

15 of 20
Phil found that, as he continued to crowd laborers into his hot dog stand, the extra output he received from each additional laborer was beginning to fall off. This is an example of the
law of increasing opportunities.
law of demand.
law of diminishing marginal utility.
law of diminishing product.

Question

16 of 20
Which of the following would be an example of a fixed cost to a firm?
Rent for the building that it occupies
Wages for the laborers
Cost of raw materials
electricity and other fuel costs

Question

17 of 20
Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?
Diseconomies of scale
Diminishing marginal product
Constant returns to scale
Economies of scale

Question

18 of 20
Economies of scale exist where the long-run average cost curve is
horizontal.
downward sloping.
upward sloping.
tangent to the marginal cost curve.

Question

19 of 20
Marginal costs will begin to rise at the point where
fixed costs increase.
variable costs increase.
average variable costs increase.
diminishing marginal product begins.

Question

20 of 20
If a firm gets so large that the management of employees and other resources becomes a costly problem, it will experience
diseconomies of scale.
diminishing marginal product.
constant returns to scale.
economies of scale.