Exam 11: Behind the Supply Curve: Inputs and Costs

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 total cost of producing 43 statues is:

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.When Lindsay produces 50 units of produce,her total cost is:

Use the following to answer question: -(Figure: Short-Run Costs)Use Figure: Short-Run Costs.C is the _____ cost curve.

The advantage of specialization in production is one of the primary reasons for decreasing returns to scale.

In the long run:

Diminishing returns to an input occur:

Cindy operates Birds-R-Us,a small store manufacturing and selling 100 bird feeders per month.Cindy's monthly total fixed costs are $500,and her monthly total variable costs are $2,500.If for some reason Cindy's fixed cost fell to $400,then her _____ costs would _____.

Use the following to answer question: -(Figure: Marginal Product of Labor)Use Figure: The Marginal Product of Labor.The total product of labor for five workers is _____ bushels.

Use the following to answer question: -(Figure: The Average Total Cost Curve)Use Figure: The Average Total Cost Curve.The total cost of producing five pairs of boots is approximately:

Average variable cost is the ratio of:

Use the following to answer question: -(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.Negative marginal returns begin when the _____ worker is added.

The shape of the marginal cost curve is the mirror image of the shape of the _____ curve.

Use the following to answer question: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 crosses the average total cost curve at:

In the long run,when a firm adds physical capital,workers become more productive,so variable costs increase.

Use the following to answer question: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 crosses the average variable cost curve at:

If Marie Marionettes is operating under conditions of diminishing marginal product,the marginal costs will be:

The average total cost of producing cell phones in a factory is $20 at the current output level of 100 units per week.If the fixed cost is $1,200 per week:

A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:

When a caterer produces 30 catered meals,its marginal cost and average variable cost each equal $10.Therefore,assuming normally shaped cost curves,at 29 meals its marginal cost is _____ $10 and its average variable cost is _____ $10.

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