< Saint Leo Univ ECO 202 Chapter 22 Test (2015) >

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Which of the following is true about the long-run average cost curve?

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At its current short-run level of production, a firm’s average variable costs equal $30.00 per unit and its average fixed costs equal $25.00 per unit. Its total costs at this production level equal $3,500.

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The wage rate divided by marginal product equals

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The short run is defined as

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 In the table above, diminishing returns begins with the addition of worker number.

In the table above, the marginal physical product becomes negative when the ___worker is added

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Using the 3-point curved line drawing tool, draw a possible long-run average cost curve for a firm that always experiences diseconomies of scale no matter what plant size it selects.  Label this curve  ‘ATC’.           

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The law of diminishing marginal returns shows the relationship between

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The shape of the short-run cost curves are the result of

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If a firm hires an additional worker and discovers that its total physical output has fallen, then it must be true that

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In economics, the planning horizon is defined as

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 Economies of scale in production

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Which of the graphs represents the correct relationship among the cost curves?

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In the long run there

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Consider the long-run average cost curve to the right.

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The firm’s minimum efficient scale occurs