Chapter 5 cost and output determination

Question 1

The academic calendar for a university is August 15 through May 15. A professor commits to a contract that binds her to a teaching position at this university for this period. Based on this​ information, the short run for the professor

Answer 1

will be the nine month period between August 15 and May​ 15; any time period longer than this will be long run for her.

Question 2

In the long run

Answer 2

all factors of production are variable

Question 3

If total product is increasing at a decreasing​ rate, then marginal product is

Answer 3

decreasing

Question 4

The law of diminishing marginal returns shows the relationship between

Answer 4

inputs and outputs of a firm in the short run

Question 5

The wage rate divided by marginal product equals

Answer 5

marginal cost

Question 6

When marginal cost is falling

Answer 6

the marginal product must be rising

Question 7

True or False : Fixed costs do not depend on the rate of production.

Answer 7

true

Question 8

True or False When marginal cost is below average total​ cost, average total cost falls.

Answer 8

true

Question 9

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

Answer 9

The​ long-run average cost curve is the envelope of the​ firm’s short-run average cost curves.