Which of these names the way in which producers regard taxes?
as part of the cost of production
When is a firm's rate of hiring likely to be highest?
during a phase of increasing marginal returns
Which of these is the best description of a normal supply curve?
its slope goes up when the diagram is read left to right
Which of these describes an item for which a change in its supply is proportional to a change in its price?
unit elastic
At which stage of production does the concept of "diminishing returns" first become significant?
stage 2
Which of these best enables a firm to establish its profit-maximizing quantity of output?
a periodic marginal analysis
Which of these best describes the influence of high prices on the behavior of producers?
they are an incentive for producers to produce more
Which term denotes the change in total income when one additional unit of output is added?
marginal revenue
The level of production that generates just enough revenue to cover its total operating costs is called the:
break-even point
At which point in the stages of production does the maximum profitable number of workers become most apparent?
beginning of stage 1
Which of these measures determines the three stages of production?
marginal product
A supply schedule lists various quantities of a specific product with
possible prices in the market
Which of these could a firm accomplish during a short-run production period?
hiring and firing of workers
Which stage of production is distinguished by negative marginal returns?
stage 3
Which of these is an example of a fixed cost?
depreciation of capital goods
Which of these do producers of an item hope to achieve when adopting new technologies?
a shift of the supply curve for that item to the right
Which of these best describes the influence of high prices on the behavior of producers?
high prices are an incentive for producers to produce more
Which of these is an example of a variable cost?
raw materials
Labor in a factory is an example of which of these?
a variable factor of production
Which of these describes an effect of increased government regulation on producers?
it shifts their market supply curve to the left
Which of these would an item's producer be most likely to do if total revenue on that item began to drop?
produce less of that item
Which terms describe costs that are incurred regardless of a firm's rate of production?
fixed costs and overhead
Why might a producer's introduction of a new technology result in a brief shift of a product's supply curve to the left?
there may be a period of adjustment to that technology
Which of these can be added to determine total costs?
fixed costs and variable costs
Which stage(s) of production are distinguished by increases in output?
stages 1 and 2
Which term is generally associated with machines and other capital goods?
fixed cost
Factors that can cause a change in supply include
all of the above
A production function considers how total output changes when the amount of a single variable input (usually __________) changes over time.
labor
Which term is generally associated with labor and raw materials?
variable cost
Over which of these does a producer have the most direct control?
variable cost
Because it takes huge amounts of capital and technology to increase nuclear power output, the supply curve for nuclear power is
inelastic in the short run
Which of these industries has the least elastic supply curve?
the nuclear industry