Econ 528 Final || 100% SOLVED SOLUTIONS!!
The law of diminishing marginal returns states that increases in the variable input reduce the
total product.
a. True
b. False correct answers b. False
We should use relatively more labor if we learn that the marginal product per dollar of labor
expenditures is less than a marginal product per dollar of capital expenditures.
a. True
b. False correct answers b. False
If a firm has increasing returns to scale, then increasing all inputs by 1% will increase output
by more than 1%
a. True
b. False correct answers a. True
If production displays economies of scale, the long-run average cost curve is
a. downward sloping
b. below the long-run marginal cost curve.
c. upward sloping
d. above the short-run average total cost curve. correct answers a. downward sloping
Over time, more experienced workers will demand higher wage and therefore, will lead to an
increased in the cost of production for the producers
a. true
b. false correct answers b. False
Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for
Jason's House of Apples. Refer to Figure 12-6. To maximize his profit, Jason should produce
the rate of output indicated by point Select one or more:
a. a
b. b
c. e
d. d correct answers d. D
The graph in this figure illustrates an initial competitive equilibrium in the market for apples
at the intersection of D1 and S1 (point A). If the price of oranges, a substitute for apples for
buyers, decreases and the wages of apple workers increase, how will the equilibrium point
change? Select one or more:
a. The equilibrium will first move from A to B, then return to A.
b. The equilibrium point will move from A to C.
c. The equilibrium point will move from A to B
The law of diminishing marginal returns states that increases in the variable input reduce the
total product.
a. True
b. False correct answers b. False
We should use relatively more labor if we learn that the marginal product per dollar of labor
expenditures is less than a marginal product per dollar of capital expenditures.
a. True
b. False correct answers b. False
If a firm has increasing returns to scale, then increasing all inputs by 1% will increase output
by more than 1%
a. True
b. False correct answers a. True
If production displays economies of scale, the long-run average cost curve is
a. downward sloping
b. below the long-run marginal cost curve.
c. upward sloping
d. above the short-run average total cost curve. correct answers a. downward sloping
Over time, more experienced workers will demand higher wage and therefore, will lead to an
increased in the cost of production for the producers
a. true
b. false correct answers b. False
Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for
Jason's House of Apples. Refer to Figure 12-6. To maximize his profit, Jason should produce
the rate of output indicated by point Select one or more:
a. a
b. b
c. e
d. d correct answers d. D
The graph in this figure illustrates an initial competitive equilibrium in the market for apples
at the intersection of D1 and S1 (point A). If the price of oranges, a substitute for apples for
buyers, decreases and the wages of apple workers increase, how will the equilibrium point
change? Select one or more:
a. The equilibrium will first move from A to B, then return to A.
b. The equilibrium point will move from A to C.
c. The equilibrium point will move from A to B
