St. Philips College

ECON 101

Chapter 7

1)Labor productivity will increase in response to

2. The most desired goods and services that are given up in order to get more of another good are the

3. Economies of scale are reductions in average

4. Marginal cost

5. Explicit costs

6. Technological changes that increase productivity shift the

7. Sam's surf shop has total costs of $2,000 when it is not producing any surfboards. This means that

8. A production function shows the

9. When the wage rate is $10 per hour and the MPP of a worker is 15 units per hour, the unit labor cost is

10. In the short run, when a firm produces zero output, variable cost equals

11. The sum of fixed cost and variable cost at any rate of output is
12. If the marginal physical product (MPP) is falling, then the

13. In economics, the long run is considered to be

14. A U-shaped average total cost curve implies

15. The most desirable rate of output for a firm is the output that

16. Which of the following is a factor of production for the Little Biscuit Bread Company?

17. A production function shows

18. The average fixed cost (AFC) curve

19. Implicit costs

20. Which of the following costs do not change when output changes in the short run?