Production and Costs 13 CLICKER QUESTIONS © 2013 Pearson Production and Costs 14 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 14.1 Checkpoint 14.3 Checkpoint 14.4 Question Question 11 Question Question 66 Question Question 99 Question Question 22 Question Question 77 Question Question 10 10 Question Question 88 Checkpoint 14.2 Question Question 33 Question Question 44 Question Question 55 © 2013 Pearson CHECKPOINT 14.1 Question Which of the following is an example of an implicit cost? A wages paid to employees B interest paid to a bank on a building loan C the cost of the firm using capital that is owned by the entrepreneur of the firm D dollars paid to a supplier for materials used in production E liability insurance payments made only once a year © 2013 Pearson CHECKPOINT 14.1 Question For a business, opportunity cost equals A the cost of labor and materials B the implicit costs of the business C all of the firm's costs including its normal profit and its economic profit D the cost of all the factors of production the firm employs E the firm’s explicit costs © 2013 Pearson CHECKPOINT 14.2 Question If workers can wash 30 cars a day and workers can wash 33 cars a day, then the marginal product of the 6th worker equals A B C D E 30 cars a day 33 cars a day cars a day 5.5 cars a day cars a day © 2013 Pearson CHECKPOINT 14.2 Question Increasing marginal returns occur when the _ A average product of a worker is less than the average product of the previous worker B marginal product of a worker exceeds the marginal product of the previous worker C average product of labor is at a maximum D marginal product of labor exceeds the average product of labor E marginal product of labor is at a maximum © 2013 Pearson CHECKPOINT 14.2 Question Average product increases if _ A marginal product increases B average product exceeds marginal product C marginal product is less than average product D marginal product exceeds average product E total product increases © 2013 Pearson CHECKPOINT 14.3 Question Jay set up his hot dog stand near the business district His total variable cost includes the _ A B C D annual insurance for the hot dog stand cost of buying the hot dog stand cost of the hot dogs and condiments interest he pays on the funds he borrowed to pay for advertising E revenue he gets when he sells his first hot dog each day © 2013 Pearson CHECKPOINT 14.3 Question One reason the ATC curve is U-shaped is that _ A returns from labor increase regardless of the number of workers employed B returns from labor eventually decrease as more workers are employed C the price of the good fall as output of the good increases D the average fixed cost increases as more output is produced E the variable cost decreases as more output is produced © 2013 Pearson CHECKPOINT 14.3 Question If the wage rate paid to workers increases, then _ A the AFC curve shifts upward B the AVC curve doesn’t change, but ATC shifts upward C the MC curve remains the same, but the AVC curve shift upward D both the MC curve and the AVC curve shift upward E both the AFC curve and the ATC curve shift upward © 2013 Pearson CHECKPOINT 14.4 Question Economies of scale occur whenever A marginal cost decreases as output increases B output is increased by increasing all inputs by the same percentage and total cost increases by smaller percentage C marginal product increases as labor increases with capital unchanged D a firm increases its plant size and labor by the same percentage, but its output increases by a larger percentage E marginal product increases as the firm increases its plant size © 2013 Pearson CHECKPOINT 14.4 Question 10 The figure shows four ATC curves of a firm If the firm produces 3,000 units per day, in the long run, it will use the plant size that corresponds to _ A ATC1 B ATC2 C ATC3 D ATC4 E either ATC1 or ATC4 © 2013 Pearson ... A the cost of labor and materials B the implicit costs of the business C all of the firm's costs including its normal profit and its economic profit D the cost of all the factors of production... average product of a worker is less than the average product of the previous worker B marginal product of a worker exceeds the marginal product of the previous worker C average product of labor is... Question Which of the following is an example of an implicit cost? A wages paid to employees B interest paid to a bank on a building loan C the cost of the firm using capital that is owned by the entrepreneur