管理經(jīng)濟學(xué)第七版英文教輔 chapter 7

ManagerialEconomics,7e(Keat)Chapter7TheTheoryandEstimationofCost(Appendices7A,7B,and7C)Multiple-ChoiceQuestionsToaneconomist,totalcostsincludeexplicit,butnotimplicitcosts.implicit,butnotexplicitcosts.explicitandimplicitcosts.neitherexplicitnorimplicitcosts.Answer:CDiff:1Economistsconsiderwhichofthefollowingcoststobeirrelevanttoashort-runbusinessdecision?opportunitycostout-of-pocketcosthistoricalcostreplacementcostAnswer:CDiff:1Whichofthefollowingisarelevantcost?replacementcostsunkcosthistoricalcostfixedcostAlloftheabovearerelevant.Answer:ADiff:1Whichofthefollowingdistinctionshelpstoexplainthedifferencebetweenrelevantandirrelevantcost?accountingcostvs.directcosthistoricalcostvs.replacementcostsunkcostvs.fixedcostvariablecostvs.incrementalcostAnswer:BDiff:1Diseconomiesofscalecanbecausedbythelawofdiminishingreturns.bureaucraticinefficiencies.increasingadvertisingandpromotionalcosts.AlloftheaboveAnswer:BDiff:1Whichofthefollowingisthebestexampleofeconomiesofscope?Coca-Colaexpandsitsglobaloperationstosub-SaharaAfrica.Alcoholforcarfuelisproducedfromcorn.AdecidestorentoutitsWebsitetoindependente-commercecompanies.Acompanyreducesitscostbygettingbiggerdiscountsforbulkpurchases.Answer:CDiff:2Short-runcostfunctionsareestimatedusingtime-seriesregressionanalysis.cross-sectionalregressionanalysis.nominalcostdata.presentvaluecostdata.Answer:ADiff:1Inestimatingshort-runcostfunctions,onemustadjustforpricelevelchanges.accountingprocedureductheterogeneity.AlloftheaboveAnswer:DDiff:1Long-runcostfunctionsareestimatedusingtime-seriesregressionanalysis.cross-sectionalregressionanalysis.costaccountingdata.NoneoftheaboveAnswer:BDiff:1AnalyticalQuestionsYouhaveopenedyourownword-processingservice.Youboughtapersonalcomputer,andpaid$5,000forit.However,duetothecostchangesinthecomputerindustry,thecurrentpriceofanequivalentmachineis$2,500.Youcouldsellanyusedmachinefor$1,000.Ifyouwerenotwordprocessing,youcouldearn$20,000peryearatanalternativejob.Assumethattheinterestrateis10%.Youcanalsohireanassistantwhocandoeverythingthatyoucandofor$20,000peryear(youwouldstillcontinuetodowordprocessing).Onepersonusingonecomputercanproduce11,000typedpagesperyear,andthepriceperpageforyourserviceis$2.Youareconsideringthreeoptions:(1)expandyourbusinessbyhiringanassistant;(2)leaveyourbusinessthewayitis;(3)shutdown.Basedonthecostsandrevenuesabove,whichshouldyoudo?Explainandshowanyrelevantcalculations.Answer:Option1:Revenue=$22,000Opportunitycostofyourtime=20,000Opportunitycostofinterestonsalvagevalueofexistingcomputer=100Economicprofit=$1,900Option2:Youstillearn$1,900asabove.Revenuefromadditionalworker=22,000Wages=20,000Opportunitycostofinterestonpurchaseofnewcomputer=250Depreciation=1,500Economicprofitfromadditionalworker=$250Totaleconomicprofit=$2,150Option3:Revenue=0Nocosts,sinceopportunitycostsnolongerapply,andfixedcostsaresunk.Economicprofit=0(Couldpossiblyviewthe$1,000yougetfromsellingtheusedcomputerasrevenue,butmakesnodifferencetofinalsolutionofproblem.)Option2,expandyourbusiness,isthebestoption.Fred'sWidgetCompanyhaspurchased$500,000inequipment,whichcanbesoldforasalvagevalueof$300,000atanytime.Thebestinterestrateonalternativeinvestmentsis5%.Whatisthecostofusingthismachineryforoneyear?Howwouldyouranswerbedifferentifthemachineryhadnotyetbeenpurchased?Answer:Short-runcost=$15,000Costifthemachinerywasnotpurchased=$200,000+$25,000二$225,000Explanation:Theshort-runcostisjusttheforgoneinterest.Theshort-rundepreciationissunk,andthesalvagevaluedoesn'tchange.Thelong-runcost(ifthemachinehasnotbeenpurchased)isthedepreciationcostplustheforegoneinterestonthewhole$500,000.Thefollowingtableshowstherelationshipbetweenoutputandnumberofworkersintheshortrun.Ifthewageis$50/day,findmarginalcostofproduction.NumberofWorkersOutput001502110330044505590666577008725974010735Answer:NumberofWorkersOutputMPlMC(=w/MPl)00——__150501.002110600.9133001900.2644501500.3355901400.366665750.677700351.438725252.009740153.3310735-5一一

Considerafirmthathasjustbuiltaplant,whichcost$1,000.Eachworkercosts$5.00perhour.Basedonthisinformation,fillinthetablebelow.NumberofWorkerHoursOutputMarginalProductFixedCostVariableCostTotalCostMarginalCostAverageVariableCostAverageTotalCost00——————5040010090015013002001600250180030019003501950Answer:NumberofWorkerHoursOutputMarginalProductFixedCostVariableCostTotalCostMarginalCostAverageVariableCostAverageTotalCost00——1,00001,000——————5020041,0002501,2501.251.256.25100700101,0005001,5000.500.71432.14291501400141,0007501,7500.35710.5357L25200165051,00010002,00010.60611.2121250180031,00012502,2501.66670.69441.25300190021,00015002,5002.500.78951.315835019751.51,00017502,7503.33330.88611.3924Howwouldeachofthefollowingaffectthefirm'smarginal,average,andaveragevariablecostcurves?AnincreaseinwagesAdecreaseinmaterialcostsThegovernmentimposesafixedamountoftax.Therentthatthefirmpaysonthebuildingthatitleasesdecreases.Answer:Wagesareavariablecost,soMC,AVC,andATCincrease.Materialsareavariablecost,soMC,AVC,andATCdecrease.Afixedorlump-sumtaxincreasesATCbutnotMCorAVC.Rentisgenerallyviewedasafixedcost,soATCdecreases,butMCandAVCareunchanged.Afirmexperiencesincreasingreturnstoscale;thatis,doublingallitsinputsmorethandoublesitsoutput.Whatcanbeinferredaboutthefirm'sshort-runcosts?Answer:Returnstoscaleisalong-runphenomenonbecauseallinputsmustbechanged.Thuswecaninferlittleaboutthefirm'sshort-runcostsfromthisinformation,otherthanthefirmislikelytoexperiencediminishingmarginalreturnsintheshortrunduetothefactthatitwillhaveafixedfactorofproduction(andthusshort-runmarginalcostswillrisewithoutput).Carefullyexplainifthefollowingstatementsaretrue,false,oruncertain.Ifaveragecostisincreasing,marginalcostmustbeincreasing.Iftherearediminishingreturns,themarginalcostcurvemustbepositivelysloped.Marginalcostsdecreaseasoutputincreasesbecausethefirmcanspreadfixedcostsovermoreunits.Answer:True.Ifaveragecostisincreasing,marginalcostmustbeaboveaveragecost,somarginalcostmustbeincreasing.True.Iftherearediminishingreturns,eachworkerproduceslessthantheonebeforehim.Thuseachunitmustbegettingmoreexpensive(becauseyoupayworkersthesameamountbuttheyproduceless).False.Marginalcostshavenothingtodowithfixedcosts.Thestatementwouldbecorrectifitwasaboutaveragecosts.Carefullyexplainthedifferencebetweendiseconomiesofscaleanddiminishingreturns.Answer:Diseconomiesofscalemeansthat,inthelongrun,averagecostsarerising,usuallyduetocoordinationproblemsordecreasingreturnstoscale.Diminishingreturnsmeansthat,intheshortrun,marginalproductisfalling(ormarginalcostisrising)becauseeachadditionalworkerisproducinglessthantheonebeforehim,duetothefactthatcapital(orsomeotherfactorofproduction)isfixed.Thereisnoconnectionbetweenthesethings.Foreachofthefollowingcostfunctions,findMC,AC,andAVC.TC=20,000+10QTC=18,000+Q+0.2Q2Answer:MC=10AC=(20,000/Q)+10AVC=10MC=1+0.4QAC=(18,000/Q)+1+0.2QAVC=1+0.2QForeachofthefollowingcostfunctions,ifpossible,findminimumACandminimumAVC.TC=20,000+10QTC=18,000+Q+0.2Q2Answer:SetMC二AC.10二(20,000/Q)+10Inthiscase,ACisdecreasingeverywhere,andthusthereisnominimumaveragecost(althoughitwillapproach$10).SetMC=AVC.10=10MC二AVC=10forallvaluesofQinthisinstance.SetMC=AC.+0.4Q=(18,000/Q)+1+0.2QQ=300,andatthatpoint,AC=$121.SetMC=AVC.1+0.4Q=1+0.2QQ=0,andatthatpoint,AVC=$1.GiventhetotalcostfunctionTC=100+40Q-15Q2+5Q3,calculatetheaveragefixedcostfunction(AFC)averagevariablecostfunction(AVC)marginalcostfunction(MC)Answer:AFC=100/QAVC=40-15Q+5Q2MC=40-30Q+15Q212)GiventheproductionfunctionQ=21X+9X2-x3,whereQ=Output,andX=InputAtwhatvalueofXdoesStageIIoftheproductionfunctionbegin?AtwhatvalueofXdoesStageIIIoftheproductionfunctionbegin?AtwhatvalueofXdoesdiminishingreturnssetin?Answer:StageIIbeginswhenAPisatamaximum,orX=4.5StageIIIbeginswhereMP=0,orX=7[-1hasnomeaning]diminishingreturnssetinwhenMPatamaximum,ordMP/dQ=0,orX=3Whichofthefollowingdistinctionsdoesnothelptoexplainthedifferencebetweenrelevantandirrelevantcost?historicalvs.replacementcostsunkvs.incrementalcostvariablevs.fixedcostout-of-pocketvs.opportunitycostAllhelptoexplainthedifference.Answer:DDiff:2Costsofproductionthatchangewiththerateofoutputaresunkcosts.opportunitycosts.fixedcosts.variablecosts.Answer:DDiff:1Changesintheshort-runtotalcostsresultfromchangesinonlyvariablecosts.fixedcosts.zero.totalfixedcosts.Answer:ADiff:1Economicprofitequalsaccountingprofitminusexplicitcosts.implicitcosts.fixedcosts.variablecosts.Answer:BDiff:1Whichofthefollowingismostlikelyafixedcost?expendituresforrawmaterialswagesforunskilledlaborfuelcostpropertytaxesAnswer:DDiff:1Averagefixedcostdoesnotchangeastotaloutputincreasesordecreases.variesdirectlywithtotaloutput.fallscontinuouslyastotaloutputexpands.risesastheoutputisexpanded.Answer:CDiff:1AveragefixedcostisACminusAVC.TCdividedbyQ.AVCminusMC.TCminusTVC.Answer:ADiff:1Whichofthefollowingcostrelationshipsisnottrue?AFC=AC-MCTVC=TC-TFCThechangeinTVC/thechangeinQ=MCThechangeinTC/thechangeinQ=MCAnswer:ADiff:2Whenafirmincreaseditsoutputbyoneunit,itsAFCdecreased.ThisisanindicationthatA)thelawofdiminishingreturnshastakeneffect.MC<AFC.AVC<AFC.thefirmisspreadingoutitstotalfixedcost.Answer:DDiff:3Thedistinctionbetweensunkandincrementalcostsismosthelpfulinansweringwhichquestion?Howmanymorepeopleshouldbeaddedtotheproductionprocess?Whatisthecorrectpricetocharge?Shouldwebegintobuildanewfactory?Shouldwecontinuedevelopinganewsoftwareapplicationthatwebeganlastyear?Answer:DDiff:2Whichofthefollowingrelationshipsiscorrect?Whenmarginalproductstartstodecrease,marginalcoststartstodecrease.Whenmarginalcoststartstoincrease,averagecoststartstoincrease.Whenmarginalcoststartstoincrease,averagevariablecoststartstoincrease.Whenmarginalproductstartstodecrease,marginalcoststartstoincrease.Answer:DDiff:2TherelationshipbetweenMCandACcanbestbedescribedaswhenACincreases,MCstartstoincrease.whenMCincreases,ACstartstoincrease.whenMCdecreases,ACdecreases.whenMCexceedsAC,ACincreases.Answer:DDiff:2Thelawofdiminishingreturnsbeginsfirsttoaffectafirm'sshort-runcoststructurewhenA)averagevariablecostbeginstoincrease.marginalcostbeginstoincrease.averagecostbeginstoincrease.averagefixedcostbeginstodecrease.Answer:BDiff:2Whenafirmincreaseditsoutputbyoneunit,itsACrosefrom$45to$50,ThisimpliesthatitsMCis$5.between$45and$50.greaterthan$50.CannotbedeterminedfromtheaboveinformationAnswer:CDiff:3Whenafirm'sMCcurveshiftstotheright,itimpliesthatnewfirmsareenteringthemarket.laborproductivityisdecreasing.laborproductivityisincreasing.thefirm'soverheadcostsaredecreasing.Answer:CDiff:3MCincreasesbecauseMCheshortrun,MCalwaysincreases.thelawofdiminishingreturnstakeseffect.Answer:DDiff:3Themarginalcostwillintersecttheaveragevariablecostcurvewhentheaveragevariablecostcurveisrising.whereaveragevariablecostcurveequalsprice.attheminimumpointoftheaveragevariablecostcurve.Thetwowillneverintersect.Answer:CDiff:2Whichofthefollowingcostfunctionswillexhibitbothdecreasingandincreasingmarginalcosts?acubiccostfunctionaquadraticcostfunctionalinearcostfunctionAlloftheaboveAnswer:ADiff:2Whichofthefollowingstatementsbestrepresentsadifferencebetweenshort-runandlong-runcost?Lessthanoneyearisconsideredtheshortrun;morethanoneyearthelongrun.Therearenofixedcostsinthelongrun.Intheshort-runlabormustalwaysbeconsideredthevariableinputandcapitalthefixedinput.Alloftheabovearetrue.Answer:BDiff:1Whenafirmincreaseditsoutputbyoneunit,itsACdecreased.ThisimpliesthatMC<AC.MC=AC.MC<AFC.thelawofdiminishingreturnshasnotyettakeneffect.Answer:ADiff:3ThemainfactorthatexplainsthedifferencebetweenaccountingcostandeconomiccostisA)opportunitycost.fixedcost.variablecost.Alloftheabovehelptoexplainthedifference.Answer:ADiff:2WhenafirmexperiencesincreasingreturnstoscaleitsAFCwilldecrease.itsAFCwillincrease.itsACwillincrease.itsACwilldecrease.Answer:DDiff:2Ifafirm'srentincreases,itwillaffectitscoststructureinwhichofthefollowingways?AVCwillincrease.MCwillincrease.TFCwillincrease.Alloftheabovewillincrease.Answer:CDiff:2Whichofthefollowingrelationshipsimpliesthatafirm'sshort-runcostfunctionislinear?A)MC=ACMC=AVCAC=AFC+AVCMC>ACAnswer:BDiff:3Thelearningcurveisreallynodifferentfromamarginalcostcurve.calculatesaveragecostataparticularpointintime.showsthedecreaseinunitcostasmoreofthesameproductisproducedovertime.NoneoftheaboveAnswer:CDiff:1Thelearningcurveindicatesthateconomiesofscalearetakingeffect.repetitionofvariousproductiontaskscauseunitcoststodecrease.workersmustlearnnewskillsinordertoimprove.ittakestimetolearnanewskill.Answer:BDiff:1Whichlevelindicatesthepointofmaximumeconomicefficiency?lowestpointonACcurvelowestpointonAVCcurvelowestpointonMCcurveNoneoftheaboveAnswer:ADiff:2Whichofthefollowingactionshasthebestpotentialforexperiencingeconomiesofscope?producingaproductthathasappealtoawidersegmentofthemarketproducingcomputersandsoftwareproducingspaghettiandsoftdrinksproducingcarsandtrucksAnswer:DDiff:2Iftotalcostequals$2,000andquantityproducedis100units,thenfixedcostis$200andaveragevariablecostis$18.fixedcostis$600andaveragevariablecostis$14.fixedcostis$500andmarginalcostis$15.EitherAorBcanbecorrect.Answer:DDiff:3Ashort-runtotalcostfunction,TC=100+32Q-4Q2+0.4Q3,indicatestheexistenceofA)alineartotalcostcurve.aconstantaveragevariablecostcurve.aU-shapedaveragevariablecostcurve.aconstantmarginalcostcurve.Answer:CDiff:3Theresultsofmanyempiricalstudiesofshort-runcostfunctionshaveshownthattotalcostsconformtoaquadratictotalcostfunction.apowercostfunction.alinearcostfunction.acubiccostfunction.Answer:CDiff:1Amongtheproblemsencounteredwhentimeseriesanalysisisusedtoestimatecostfunctionsisthattechnologicalchangesmayhaveoccurred.thataccountingchangesmayhaveoccurredduringtheperiodanalyzed.thatsomecostsarerecordedonthebooksofaccountatatimeotherthanwhentheyareincurred.AlloftheaboveAnswer:DDiff:2Themethodofestimatinglong-runcostsinwhichknowledgeableprofessionalsfamiliarwithproductionfacilitiesandprocessescalculateoptimalcombinationofinputstoproducegivenquantitiesandthenestimatecostsisknownasengineeringcostestimating.thesurvivorshipmethod.regressionanalysis.NoneoftheaboveAnswer:ADiff:2Whenthesurvivorshipmethodofcostestimatingisused,anincrease,overtime,intheproportionofindustryproductproducedbymediumsizefirmsindicatestheexistenceofA)continuingeconomiesof