Question 1

​​​Table 13-7 
-​Refer to Table 13-7. ​What is total output when 1 worker is hired?

Accepted Answer

A)  ​0
B)  ​40
C)  45
D)  ​85E) B) and C)
F) C) and D)

Question 2

Figure 13-2 
-Refer to Figure 13-2. The graph illustrates a typical

Accepted Answer

A)  total-cost curve.
B)  production function.
C)  production possibilities frontier.
D)  marginal product of labor curve.E) C) and D)
F) A) and B)

Question 3

Consider a small hair styling salon. List some examples of explicit costs of this business.

Accepted Answer

shampoo, conditioner, other products for...

Question 4

The marginal-cost curve intersects the average-fixed-cost curve at the minimum of marginal cost.

Accepted Answer

A) True 
 B)False

Question 5

Scenario 13-6
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce.
-Refer to Scenario 13-6. Ziva's accountant would calculate the total cost for the day of farming to equal

Accepted Answer

A)  $25.
B)  $130.
C)  $300.
D)  $380.E) A) and B)
F) C) and D)

Question 6

Explicit costs

Accepted Answer

A)  require an outlay of money by the firm.
B)  include all of the firm's opportunity costs.
C)  include the value of the business owner's time.
D)  Both b and c are correct.E) B) and D)
F) B) and C)

Question 7

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Accepted Answer

A)  output levels greater than N
B)  output levels between M and N
C)  output levels less than M
D)  All of the above are correct as long as the firm is operating in the long run.E) A) and B)
F) A) and C)

Question 8

Scenario 13-7
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000, and her expenses for the business were $15,000. When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting business.
-Refer to Scenario 13-7. Julia's accounting profits are

Accepted Answer

A)  $160,000.
B)  $150,000.
C)  $135,000.
D)  $125,000.E) B) and C)
F) C) and D)

Question 9

What are opportunity costs? How do explicit and implicit costs relate to opportunity costs?

Accepted Answer

The opportunity cost of an ite...

Exam 13: The Costs of Production

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The marginal-cost curve intersects the average-fixed-cost curve at the minimum of marginal cost.

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Figure 13-2 -Refer to Figure 13-2. The graph illustrates a typical

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Explicit costs

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Correct Answer
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Consider a small hair styling salon. List some examples of explicit costs of this business.

Correct Answer
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shampoo, conditioner, other products for...
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Table 13-7 -Refer to Table 13-7. What is total output when 1 worker is hired?

Correct Answer
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What are opportunity costs? How do explicit and implicit costs relate to opportunity costs?

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The opportunity cost of an ite...
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Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

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Exam 13: The Costs of Production

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The marginal-cost curve intersects the average-fixed-cost curve at the minimum of marginal cost.

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Figure 13-2 -Refer to Figure 13-2. The graph illustrates a typical

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Explicit costs

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Correct AnswerverifiedShow Answer

Consider a small hair styling salon. List some examples of explicit costs of this business.

Correct Answerverifiedshampoo, conditioner, other products for...View AnswerShow Answer

​​​Table 13-7 -​Refer to Table 13-7. ​What is total output when 1 worker is hired?

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What are opportunity costs? How do explicit and implicit costs relate to opportunity costs?

Correct AnswerverifiedThe opportunity cost of an ite...View AnswerShow Answer

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

Correct AnswerverifiedShow Answer

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Correct Answer
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shampoo, conditioner, other products for...
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Table 13-7 -Refer to Table 13-7. What is total output when 1 worker is hired?

Correct Answer
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Correct Answer
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The opportunity cost of an ite...
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Correct Answer
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