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##### Economics MCQs Assignment

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Question;Managers in determining the rate of output which maximizes profits must considerRespuestaa.b.c.d.total cost functionsunk coststotal variable cost functionalternatives b and cAt an automobile assemblyplant XYZ the progress ratioof 0.9 is used as a metric forlearning. At the plant workersassembled 1,000 cars ofmodel BW, and the averagetotal cost is \$25,000. What isthe learning rate orexperience rate?Respuestaa. 1%b. 9%c. 8%d. 10%If a firm doubles the amountof inputs used in productionand as a result output hasmore than doubled, then thefirm is experiencingRespuestaa. constant returns to scaleb. diseconomies of scalec. diminishing returns to scaled. economies of scaleSuppose that a company has the following total cost function: TC = 2Q 2 10Q + 200.The total fixed cost function (TFC) is:Respuestaa. 2Q 10 + 200/Qb. 4Q - 10c. 200/Qd. 200Pregunta 7Which of the following costs are ignored when making managerial decisions?Respuestaa. marginalcostsb. sunk costsc. relevant costsd. incremental costsAverage total costs is minimum whenRespuestaa. marginalcost is decliningb. average cost equals marginal costc. average total cost is greater than marginal costd. marginal costs is greater than average total costsThe percentage change in profits that occurs from a one percent change in sales isknown asRespuestaa. outputelasticityof operating leveragec. cost elasticityd. sales elasticityb. degreeIf a firm has increasing marginal cost then the firmsRespuestaa. total cost must be increasingb. total fixed cost is decreasingc. average total cost must be increasingd. average variable cost must be increasingSuppose that a company has the following total cost function: TC = 2Q 2 10Q + 200.The average variable cost function (AVC) is:Respuestaa. 200/Qb. 2Q10+200/Qc. 2Q - 10d. 2Q+200/QAt an automobile assembly plant XYZ the progress ratio of 0.9 is used as ametric for learning. At the plant workers assembled 1,000 cars of model BW,and the average total cost is \$25,000. What would be the expected cost percar for the 4,000th car?Respuestaa. 20,250b. 18,225c. 21,402d. \$22,500Suppose that a company has the following total cost function: TC = 2Q 2 10Q + 200.The average fixed cost (AFC) isRespuestaa. 200/Qb. 4Q - 10c. -10Q + 200d. 2Q 10 + 200/QSuppose that a company has the following total cost function: TC = 2Q 2 10Q + 200.The average total cost function (ATC) will beRespuestaa. 2Q10 + 200/Q- 10c. 100d. 200/Qb. 4QManagers of a firm in which diseconomies of scale are taking place shouldRespuestaa. lowerthe prices of their products in the market to offset competitionthe amount of inputs used in the production processc. reduce workers salaries in order to reduce costd. reduce the scale of production in order to cut back on average total costb. increaseThe minimum efficient scale of output occurs when:Respuestaa. short-runtotal cost is minimumaverage total cost is minimumc. long-run marginal cost is minimumd. long-run average total cost is minimumb. short-runIn the long run the desired plant size for a firm will be the one that hasRespuestaa. minimum average total cost of producing the desired target level of outputb. the largest capacity of producing the maximum amount of outputc. largest capacity of producing output at lowest fixed costd. the lowest average fixed costA firm has the following cost function: TC = 2Q2 10Q + 200. What output level shouldthe firm produce in order to minimize average total cost (ATC)?Respuestaa. 8b. 20c. 25d. 10The breakeven point of a firm occurs at the level of output whereRespuestaa. priceequals marginal costrevenue equals total costc. marginal revenue equals marginal costd. marginal cost equals average variable costb. totalCompany XYZ produces a product Alpha that has a degree of operating leverage of+3.5. Suppose a new order is received, and, the rate of output is increased by 10percent. The percentage effect that this increase in output will have on the profit madefrom producing and selling commodity Alpha will beRespuestaa. 3.5b. lesspercentthan 3.5 percentc. mored. 35than3.5 percent but less than 35 percentpercentAt the level of output where marginal cost equals average variable costRespuestaa. averagetotal cost is decreasingvariable cost is decreasingc. average total cost is minimumd. average variable cost is increasingb. averageSuppose that a company has the following total cost function: TC = 2Q 2 10Q + 200.The marginal cost function (MC) is:Respuestaa. 10Q + 200.b. 2Q 10 + 200/Qc. 200/Qd. 4Q - 10The firm reaches breakeven point whenRespuestaa. price equals average variable costb. Price equals average total costc. price equals marginal costd. the contribution margin per unit is zerIf the degree of operating leverage (DOL) is equal to +3 thenRespuestaa. a onepercent rise in price will increase sales by 3 percenta one percent rise in price will increase profits by 3 percentb.c. ad.one percent rise in sales will increase operational costs by 3 percenta one percent rise in sales will increase profits by 3 percentCompany XYZ produces cellular phones brand GREENBERRY, at an annual rate of500,000 units. Its total fixed costs are \$6 million per year, and at is current rate ofoutput, its total variable costs for the year will be 80 million. The price of theGREENBERRY is \$450. What is the degree of operating leverage for theGREENBERRY?Respuestaa. 2b. 1.5c. 2.8d. 1.04Diseconomies of scale occur when a firm hasRespuestaa. constant returns to scaleb. increasing long-run average costsc. decreasing long-run pricesd. decreasing long-run average costsNormal economic profitsRespuestaa.b.c.d.are irrelevant to managers in thedecision making processoccur when explicit costs arededucted from revenuesare affected by economic costsare not important in realinvestment decisionsIf a firm has implicit coststhat are greater than zerobut its economic profits isexactly zeroRespuestaa. the firmwill shut down some of its produb accounting profits are greater than zero.c. inputs in the production process are usedd.alternatives (a) and (b)Which of the following alternatives represent economic costs?Respuestaa. implicitb. explicitc. bcostscostsand ccostsd. sunk

Paper#55631 | Written in 18-Jul-2015

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