1. Diminishing marginal returns refers to a situation where theless than the2. If the average variable cost of producing 10 units is $18 and the average variable cost ofproducing 11 units is $20, we know that, between 10 and 11 units of output,a. marginal cost; marginal costb. average cost; average costc. marginal product; marginal productd. average product; average producte. marginal product; average productd.of the previous worker.e.a. marginal cost is increasing.b.c.d. total cost is either increasing or decreasing.c.none of the above3. A fall in the price of a good from $10.50 to $9.50 results in an increase in the quantity demandedfrom 18,800 to 21,200 units. The price elasticity of demand isBaverage total cost is increasing.average fixed cost is increasing.e.a. 0.8.b.C. 1.2.d.8.0.e. 2.4.of an additional worker is1.25.4. If Hamburger Helper is an inferior good, then, a decrease in income will lead toa. a leftward shift of the demand curve for Hamburger Helper.b. a rightward shift of the demand curve for Hamburger Helper.a movement up along the demand curve for Hamburger Helper.a movement down along the demand curve for Hamburger Helper.an initial movement up and then down along the demand curve for Hamburger Helper.5. Consider the market for cell phones. Suppose the price of a cell phone falls. Explain the effect ofthis event on the quantity of cell phones demanded and on the demand for cell phones.ECON 201-2a. The quantity of cell phones demanded is unchanged and the demand for cell phonesincreases.b. The quantity of cell phones demanded decreases and the demand for cell phones isunchanged.c. The quantity of cell phones demanded increases and the demand for cell phones isunchanged.d. The quantity of cell phones demanded increases and the demand for cell phones alsoincreases.The quantity of cell phones demanded is unchanged and the demand for cell phonesdecreases.

“Since you have posted multiple questions, we will provide the solution only to the first question…

1. Diminishing marginal returns refers to a situation where the of the previous worker. less than the a. marginal cost; marginal cost b. average cost; average cost c. marginal product; marginal product d. average product; average product e. marginal product; average product L of an additional worker is

1. Diminishing marginal returns refers to a situation where the of the previous worker. less than the a. marginal cost; marginal cost b. average cost; average cost c. marginal product; marginal product d. average product; average product e. marginal product; average product L of an additional worker is

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 2CQQ

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

1. Diminishing marginal returns refers to a situation where the
less than the
2. If the average variable cost of producing 10 units is $18 and the average variable cost of
producing 11 units is $20, we know that, between 10 and 11 units of output,
a. marginal cost; marginal cost
b. average cost; average cost
c. marginal product; marginal product
d. average product; average product
e. marginal product; average product
d.
of the previous worker.
e.
a. marginal cost is increasing.
b.
c.
d. total cost is either increasing or decreasing.
c.
none of the above
3. A fall in the price of a good from $10.50 to $9.50 results in an increase in the quantity demanded
from 18,800 to 21,200 units. The price elasticity of demand is
B
average total cost is increasing.
average fixed cost is increasing.
e.
a. 0.8.
b.
C. 1.2.
d.
8.0.
e. 2.4.
of an additional worker is
1.25.
4. If Hamburger Helper is an inferior good, then, a decrease in income will lead to
a. a leftward shift of the demand curve for Hamburger Helper.
b. a rightward shift of the demand curve for Hamburger Helper.
a movement up along the demand curve for Hamburger Helper.
a movement down along the demand curve for Hamburger Helper.
an initial movement up and then down along the demand curve for Hamburger Helper.
5. Consider the market for cell phones. Suppose the price of a cell phone falls. Explain the effect of
this event on the quantity of cell phones demanded and on the demand for cell phones.
ECON 201-2
a. The quantity of cell phones demanded is unchanged and the demand for cell phones
increases.
b. The quantity of cell phones demanded decreases and the demand for cell phones is
unchanged.
c. The quantity of cell phones demanded increases and the demand for cell phones is
unchanged.
d. The quantity of cell phones demanded increases and the demand for cell phones also
increases.
The quantity of cell phones demanded is unchanged and the demand for cell phones
decreases.

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