Question : 61) The marginal cost curve U-shaped. Over the range of : 1226142

61) The marginal cost curve is U-shaped. Over the range of output for which the marginal cost is falling as output increases, the marginal product is

A) increasing.

B) decreasing.

C) constant.

D) probably changing, but there is no stable relationship between the marginal cost and the marginal product.

E) not defined.

62) The relationship between the MP and MC curves is

A) over the range where the MP curve has a negative slope, the MC curve also has a negative slope.

B) there is no predictable relationship.

C) over the range where the MC curve has a positive slope, the MP curve also has a positive slope.

D) over the range where the MP curve has a positive slope, the MC curve has a negative slope.

E) that the MP is not defined when the MC curve has a negative slope.

63) If marginal cost increases when output increases, then

A) marginal product must decrease when output increases.

B) average fixed cost is constant.

C) total cost is constant.

D) average variable cost must increase when output increases.

E) average total cost must decrease when output increases.

64) If another worker is hired with a marginal product greater than the previously hired worker, which of the following will be true?

A) total costs will decrease

B) fixed costs will decrease

C) marginal cost will increase

D) marginal cost will decrease

E) average fixed costs will increase

65) When the marginal product is increasing as the quantity increases, then as the quantity increases the

A) average product is decreasing.

B) marginal cost is decreasing.

C) total cost is decreasing.

D) total product is decreasing.

E) fixed cost is increasing.

66) If we know the amount of total cost, average total cost, average variable cost, and marginal cost for each level of output, how can we find the level of output where the marginal product is the greatest?

A) It is the output for which the marginal cost equals average variable cost.

B) It is the output for which the total cost is maximized.

C) It is the output for which the marginal cost is minimized.

D) It is the output for which the marginal cost equals average total cost.

E) There is no way to find where marginal product is the greatest knowing only cost data.

67) Cost curves shift if

i.technology changes.

ii.the prices of factors of production change.

iii.productivity changes.

A) only i

B) i and iii

C) only ii

D) i and ii

E) i, ii, and iii

68) An increase in the price of labor (a variable resource) shifts

A) all cost curves upward.

B) the variable cost curves upward but leaves the fixed cost curves unchanged.

C) the fixed cost curves upward but leaves the variable cost curves unchanged.

D) the marginal cost curve rightward.

E) none of the cost curves.

69) Total cost is equal to the sum of

A) total revenue and total cost.

B) total variable cost and total product.

C) total variable cost and total fixed cost.

D) total fixed cost and total product.

E) the marginal cost plus the total fixed cost plus the total variable cost.

70) Total fixed cost is the cost of

A) labor.

B) production.

C) a firm’s fixed factors of production.

D) only implicit factors of production.

E) only explicit factors of production.