ECON 315 - Chapter 5 Review
Assignment Questions And Already
Passed Answers (2025-2026)Update.
Marginal Cost is defined as:
a. Total cost divided by output
b. The change in output due to a one unit change in an input
c. Total product divided by the quantity of input
d. The change in total cost due to a one unit change in output - Answer d. The change in total
cost due to a one unit change in output
An implicit cost is defined as:
a. the opportunity cost of using a resource that is not explicitly paid out by the firm.
b. the amount by which the money spent on an input to production exceeds its opportunity
cost.
c. the amount by which economic profit exceeds accounting profit.
d. the difference between an input's explicit cost and its actual cost. - Answer a. the
opportunity cost of using a resource that is not explicitly paid out by the firm.
Fred is considering opening a ski shop in Colorado. Assume Fred will incur the following costs:
building rent = $100,000/year, inventory = $250,000/year, energy = $50,000/year, and labor
(one clerk) = $10,000/year. In addition, Fred's current income as a computer programmer is
$40,000 per year. Assuming Fred would earn $460,000 in revenues, he could expect to earn:
a. an accounting profit of $60,000 per year.
b. an economic profit of $10,000 per year.
c. an accounting profit of $10,000 per year.
d. an economic profit of $50,000 per year. - Answer b. an economic profit of $10,000 per year.
The amount of calendar time associated with the long run
a. is less than five years.
b. varies by industry.
c. is greater than one year.
d. is between one and five years. - Answer b
, a. the total economic costs are $100,000.
b. implicit costs are $25,000.
c. the individual is earning an economic profit of $25,000.
d. the firm is incurring an economic loss. - Answer d. the firm is incurring an economic loss
Which of the following inputs is most likely to be "fixed" in the short run?
a. Labor.
b. Energy.
c. Capital.
d. Raw Material. - Answer c. Capital.
Data on productivity gains in the 1990s in the United States strongly suggest that a significant
share of those gains was attributable to:
a. improvements in information technology.
b. increased demand for goods and services.
c. substantial reductions in labor costs.
d. improvements in education and training. - Answer a. improvements in information
technology
The term "fixed input" refers to:
a. inputs to production that do not vary in price.
b. inputs to production that yield a constant or "fixed" marginal product.
c. inputs to production, the quantity of which cannot be varied in the short run.
d. inputs to production that do not vary with respect to quality. - Answer c. inputs to
production, the quantity of which cannot be varied in the short run.
All else constant, an increase in productivity has the effect of causing:
a. the marginal product of labor to increase and the average product of labor to decrease.
b. the average product of labor to increase and no effect on the marginal product of labor.
c. the marginal product of labor to increase and no effect on the average product of labor.
d. both the marginal and average product of labor to increase. - Answer d. both the marginal
and average product of labor to increase.
Assignment Questions And Already
Passed Answers (2025-2026)Update.
Marginal Cost is defined as:
a. Total cost divided by output
b. The change in output due to a one unit change in an input
c. Total product divided by the quantity of input
d. The change in total cost due to a one unit change in output - Answer d. The change in total
cost due to a one unit change in output
An implicit cost is defined as:
a. the opportunity cost of using a resource that is not explicitly paid out by the firm.
b. the amount by which the money spent on an input to production exceeds its opportunity
cost.
c. the amount by which economic profit exceeds accounting profit.
d. the difference between an input's explicit cost and its actual cost. - Answer a. the
opportunity cost of using a resource that is not explicitly paid out by the firm.
Fred is considering opening a ski shop in Colorado. Assume Fred will incur the following costs:
building rent = $100,000/year, inventory = $250,000/year, energy = $50,000/year, and labor
(one clerk) = $10,000/year. In addition, Fred's current income as a computer programmer is
$40,000 per year. Assuming Fred would earn $460,000 in revenues, he could expect to earn:
a. an accounting profit of $60,000 per year.
b. an economic profit of $10,000 per year.
c. an accounting profit of $10,000 per year.
d. an economic profit of $50,000 per year. - Answer b. an economic profit of $10,000 per year.
The amount of calendar time associated with the long run
a. is less than five years.
b. varies by industry.
c. is greater than one year.
d. is between one and five years. - Answer b
, a. the total economic costs are $100,000.
b. implicit costs are $25,000.
c. the individual is earning an economic profit of $25,000.
d. the firm is incurring an economic loss. - Answer d. the firm is incurring an economic loss
Which of the following inputs is most likely to be "fixed" in the short run?
a. Labor.
b. Energy.
c. Capital.
d. Raw Material. - Answer c. Capital.
Data on productivity gains in the 1990s in the United States strongly suggest that a significant
share of those gains was attributable to:
a. improvements in information technology.
b. increased demand for goods and services.
c. substantial reductions in labor costs.
d. improvements in education and training. - Answer a. improvements in information
technology
The term "fixed input" refers to:
a. inputs to production that do not vary in price.
b. inputs to production that yield a constant or "fixed" marginal product.
c. inputs to production, the quantity of which cannot be varied in the short run.
d. inputs to production that do not vary with respect to quality. - Answer c. inputs to
production, the quantity of which cannot be varied in the short run.
All else constant, an increase in productivity has the effect of causing:
a. the marginal product of labor to increase and the average product of labor to decrease.
b. the average product of labor to increase and no effect on the marginal product of labor.
c. the marginal product of labor to increase and no effect on the average product of labor.
d. both the marginal and average product of labor to increase. - Answer d. both the marginal
and average product of labor to increase.
