Question

QUESTION 8 As an In and Out Burger restaurant increases the number of employees for a specific restaurant, Total production of hamburgers will fall. Costs of production will fall. Efficiency will suffer as the restaurant becomes too crowded with employees. The production function will increase. 2 points QUESTION 9 Picture If the price is reduced from $100 to $80 in Figure 20.1, ceteris paribus, Total revenue will decrease. Demand will increase. Quantity demanded will decrease. Total revenue will increase. 2 points QUESTION 10 Better management shifts the production function downward and the total cost curve upward. True False 2 points QUESTION 11 A demand curve that is perfectly inelastic is Horizontal. Vertical. Upward-sloping. Downward-sloping. 2 points QUESTION 12 In economics, the long run is considered to be The time period when all costs are variable. The time period when all costs are explicit. One year. More than two years.

Answer 1

(Question 8) Option (1)

As per law of diminishing returns to labor, as number of employees increase, output starts decreasing.

(Question 9) Graph is missing.

(Question 10) False

Better management increases labor productivity, so output rises, shifting production function rightward and cost decreasing, shifting total cost curve downward.

(Question 11) Option (2)

A demand curve that is perfectly inelastic (elastic) is vertical (horizontal).

(Question 12) Option (1)

In long run, there is no fixed costs and all costs are variable.