Econ B251 Quizzes 11-15 Review With
All Solved Solutions 2025\2026.
b) Capital is fixed and Labor is variable - Answer In the short run, economists assume:
a) Capital is fixed and Labor is fixed
b) Capital is fixed and Labor is variable
c) Capital is variable and Labor is variable
d) Capital is variable and Labor is fixed
a) production function - Answer The way that a firm combines inputs and factors of
production in order to determine how much they can produce is represented by the firm's
a) production function
b) cost function
c) profit function
d) revenue function
c) Output increases at a decreasing rate as inputs are increased - Answer Diminishing marginal
returns implies
a) Output always increases at the same rate as inputs are increased..
b) Output always decreases as inputs are increased.
c) Output increases at a decreasing rate as inputs are increased
d) Output never changes as inputs are increased.
a) higher than economic profit because economic cost includes implicit and explicit costs. -
Answer Accounting profit is
a) higher than economic profit because economic cost includes implicit and explicit costs.
b) lower than economic profit because economic cost includes only implicit costs.
c) higher than economic profit because economic cost includes only implicit costs.
d)lower than economic profit because economic cost includes explicit and implicit costs.
$25 - Answer Given the table above, what is the marginal cost of the 2nd unit?
, a) Marginal costs are always decreasing.
b) Marginal costs are constant.
c) Marginal costs are always increasing.
d) Marginal costs are eventually increasing.
$3.77 - Answer Given the table above, as we move from 3 to 4 workers, what is marginal cost?
a) At a quantity where average variable costs are at their minimum. - Answer When are
marginal costs and average variable costs equal?
a) At a quantity where average variable costs are at their minimum.
b)At a quantity where marginal costs are at their minimum.
c) At a quantity where average total costs are at their minimum.
d) Never.
a) P=MR - Answer For a perfectly competitive firm, which of the following relationships is
true?
a) P=MR
b) AR<P
c) MR>P
d) AR>P
e) MR<P
c) Produce more - Answer For a perfectly competitive firm, if MR>MC, the firm should:
a) Produce less
b) lower their prices
c) Produce more
d) produce the same amount they are currently producing
b) marginal revenue is constant - Answer Based on the table above, we know that this firm is
operating in a perfectly competitive market because:
a) total revenue is increasing
b) marginal revenue is constant
All Solved Solutions 2025\2026.
b) Capital is fixed and Labor is variable - Answer In the short run, economists assume:
a) Capital is fixed and Labor is fixed
b) Capital is fixed and Labor is variable
c) Capital is variable and Labor is variable
d) Capital is variable and Labor is fixed
a) production function - Answer The way that a firm combines inputs and factors of
production in order to determine how much they can produce is represented by the firm's
a) production function
b) cost function
c) profit function
d) revenue function
c) Output increases at a decreasing rate as inputs are increased - Answer Diminishing marginal
returns implies
a) Output always increases at the same rate as inputs are increased..
b) Output always decreases as inputs are increased.
c) Output increases at a decreasing rate as inputs are increased
d) Output never changes as inputs are increased.
a) higher than economic profit because economic cost includes implicit and explicit costs. -
Answer Accounting profit is
a) higher than economic profit because economic cost includes implicit and explicit costs.
b) lower than economic profit because economic cost includes only implicit costs.
c) higher than economic profit because economic cost includes only implicit costs.
d)lower than economic profit because economic cost includes explicit and implicit costs.
$25 - Answer Given the table above, what is the marginal cost of the 2nd unit?
, a) Marginal costs are always decreasing.
b) Marginal costs are constant.
c) Marginal costs are always increasing.
d) Marginal costs are eventually increasing.
$3.77 - Answer Given the table above, as we move from 3 to 4 workers, what is marginal cost?
a) At a quantity where average variable costs are at their minimum. - Answer When are
marginal costs and average variable costs equal?
a) At a quantity where average variable costs are at their minimum.
b)At a quantity where marginal costs are at their minimum.
c) At a quantity where average total costs are at their minimum.
d) Never.
a) P=MR - Answer For a perfectly competitive firm, which of the following relationships is
true?
a) P=MR
b) AR<P
c) MR>P
d) AR>P
e) MR<P
c) Produce more - Answer For a perfectly competitive firm, if MR>MC, the firm should:
a) Produce less
b) lower their prices
c) Produce more
d) produce the same amount they are currently producing
b) marginal revenue is constant - Answer Based on the table above, we know that this firm is
operating in a perfectly competitive market because:
a) total revenue is increasing
b) marginal revenue is constant
