Exam 11: Behind the Supply Curve: Inputs and Costs

Use the following to answer question: -(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.The marginal product of the fourth worker is _____ units per period.

Use the following to answer question: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.How many mixers should Pat buy to get the lowest average total cost if she plans to make 400 cakes?

When a firm adds physical capital,its fixed cost will decrease in the short run.

If a firm builds a larger plant and increases output and if its long-run average total cost does not change,the firm has constant returns to scale.

Use the following to answer question: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers and bakes 200 cakes per day,what is her average fixed cost?

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q², where Q is the quantity of dogs groomed.Given this expression,Janet is operating in the:

(Figure: Long-Run and Short-Run Average Cost Curves)Use Figure: Long-Run and Short-Run Average Cost Curves.If a firm faced the long-run average total cost curve shown in the figure and it expected to produce 100,000 units of the good in the long run,the firm should build the plant associated with: Ref 11-18 Figure: Long-Run and Short-Run Average Cost Curves

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 4 purses is:

Use the following to answer question: -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The variable cost of producing 25 statues is:

Buford Bus Manufacturing installs a new assembly line.As a result,the output per worker increases.The marginal cost of output at Buford:

If marginal cost is GREATER than average total cost:

Use the following to answer question: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 400 cakes per day,what is her average total cost?

Use the following to answer question: -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of 4 cakes?

At the current level of output,Becca Furniture's marginal cost curve is above the average total cost curve.This means Becca Furniture's average total cost curve:

A firm's marginal cost is the:

The rent for Oscar's sporting goods store is $2,500 per month.Oscar pays his staff $9 per hour,and his monthly electricity bill averages $700,depending on his total hours of operation.Oscar's fixed costs of production equal:

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.In the short run,Tonya's variable input(s)is/are:

A manufacturing company that benefits from lower costs per unit as it grows is an example of a firm exhibiting:

A production function that is characterized by economies of scale will not be subject to diminishing returns.

Use the following to answer question: -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 1 mixer and bakes 100 cakes per day,what is her average fixed cost?