PART4. Costs of Production



1. If we assume that production in the short run is subject to increasing and then diminishing returns to the variable factor, then the general shape of the short run marginal cost curve is that it ____________________ and then ____________________

A declines, rises
B is horizontal, rises
C is horizontal, declines
D rises, declines

2. Which if the following could lead to diseconomies of scale?

A A limited size of market
B Difficulties in coordinating production
C Labour shortages
D An increase in the market prices of important raw materials

3. ____________are the sum of _____________ and _____________

A Variable costs (VC), fixed costs (FC), marginal costs (MC)
B Fixed costs (FC), variable costs (VC), marginal costs (MC)
C Total costs (TC), fixed costs (FC), variable costs (VC)
D Marginal costs (MC), fixed costs (FC), variable costs (VC)

4. A firm has £400 million in revenues and total costs of £150 million. Its owners have invested £200 million in the company. This could have been invested at 10 percent per year. The firm's economic profit is

A £230 million
B £250 million
C Zero
D £200 million

5. The minimum efficient scale of production (MES) represents

A the lowest price a business can charge consumers and still make normal profit.
B the output at which the long run average total cost curve becomes horizontal
C the output at which no further increases in output are possible
D the highest number of employees a firm can employ before productivity starts to fall

6. The break-even point or output for a business in both the short and the long run occurs when _____________

A Price = Marginal Cost
B Price = Average Variable Cost
C Price = Average Total Cost
D Price = Average Fixed Cost

7. Diseconomies of scale occur in the long run when

A the workforce demands a higher share of company profits as output increases
B a firm's long run average total cost increases with increased production.
C a firm pays a higher price for inputs as its level of production increases.
D a firm faces a high level of sunk costs

8. When a firm's long-run average cost curve exhibits internal economies of scale in the long run

A the long-run average cost equals the short-run average cost for all levels of output
B the long-run average cost curve (LRAC) is downward sloping
C the long-run average cost curve (LRAC) is upward sloping
D the long-run average cost curve (LRAC) is horizontal

9. If a producer's long-run average cost rises as its scale of operations increases, the producer is experiencing

A diminishing returns
B diseconomies of scale
C economies of scale
D falling profits

10. If the firm is experiencing diminishing returns to labour (in the short run), then total output is ________, and marginal cost is __________.

A constant, constant
B increasing, constant
C increasing, increasing
D increasing, decreasing



答案是：


ABCAB CBBBC