Micro Unit 3

Front

A production function shows the relationship between inputs and

Back

output

Front

Which of the following defines the short run? less than a year, when all inputs are fixed, when no inputs are variable, when only one input is variable, when at least one input is fixed

Back

when at least one input is fixed

Front

The slope of the total product curve is equal to the

Back

marginal product

Front

When the returns to an input are diminishing and a profit-maximizing firm chooses to hire more of that input, the total product curve has what kind of slope?

Back

positive and decreasing

Front

Historically, the limits imposed by diminishing returns have been alleviated primarily by

Back

investments in capital and technology

Front

Diminishing returns are a common result of
more of one input being added to a fixed quantity of another input

Back

more of one input being added to a fixed quantity of another input

Front

A horizontal marginal product curve would indicate that the total product curve is

Back

upward-sloping

Front

When a firm is producing zero output, the total cost equals

Back

the fixed cost

Front

Marginal cost can be found at the change in either of which two types of cost when output increases by one? average variable cost or average total cost, average fixed cost or average total cost, total cost or fixed cost, variable cost or fixed cost, variable cost or total cost

Back

variable cost or total cost

Front

Which of the following statements is correct about costs?
AVC is the change in total cost generated by one additional unit of output,
MC=TC/Q,
The average cost curve crosses at the minimum of the marginal cost curve,
The AFC curve slopes upward,
AVC=ATC-AFC

Back

AVC=ATC-AFC