ASSIGNMENT 3 CHAPTER PRODUCTION Name MULTIPLE CHOICE Choose

ASSIGNMENT 3 CHAPTER: PRODUCTION Name, MULTIPLE CHOICE· Choose the one alternative that best completes the statement or answers the questi 1) Suppose that you could either prepare your own tax return in 15 hours or hire a tax specialist to prepare it for You value your time at $11 an hour; the tax specialist will charge you $55 an hour. The opportunity cost of prepar tax return is A) $40. B) $55. C) $165.D) $110. 2) Which of the following is most likely to be an implicit cost for Company X?2) A) transportation costs paid to a nearby trucking firm B) rental payments on IBM equipment C) payments for raw materials purchased from Company Y D) fargone rent from the building owned and used by Compary X 3) Economic profits are 3) A) equal to the difference between total revenues and implicit costs. B) always larger than accounting profits. C) the sum of accounting profits and implicit costs D) equal to the difference between accounting profits and implicit costs. 4) 4) Accounting profits are typically A) smaller than economic profits because the former do not take implicit costs into account. B) greater than economic profits because the former do not take explicit costs into account C) greater than economic profits because the former do not take implicit costs into account D) equal to economic profits because accounting costs include all opportunity costs. 5) 5) The main difference between the short run and the long run is that A) in the long run, all inputs are fixed. B) in the short run, at least one input is fixed and some are variable. C) firms earn zero profits in the long run. D) the long run always refers to a time period of one year or longer. 6) Marginal product of labor refers to the 6) A) last unit of output produced by labor at the end of each period. 8) total output divided by the number of labor emplayecd. C) smallest unit of the output produced by labor D) increase in output resulting from employing one more unit of variable input such as labor 7) According to the law of diminishing marginal returns 7) A) output will fall and then rise as additional units of input are emplayed B) the additional output generated by additional units of an input will diminish. C) the addi tional inputs necessary to produce an additional unit of output will diminish b) employing additional inputs will diminish total output

Solution

Ans

1 11.(15)=165.The highest that can be earned in alternate job

2 forgoing rent. It is personal cost to company owner which is not included in accounting cost

3 A is right. It is obtained by Subtracting implicit costs from revenue

4 c is right as implicit costs >explicit cists

5 B is right. In long run all inputs are variable

6 D is right. It is really definition of marginal cost

7 B is right. It means marginal product will diminish

Was required to answer only 4 parts according to Chegg policy but still answered all Please please like answer