Exam 11: Behind the Supply Curve: Inputs and Costs

Use the following to answer question: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.The marginal cost of producing the second bagel is:

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.As she hires more labor,Tonya's production function shows that the number of apples picked increases at a decreasing rate because of:

Average variable cost does NOT equal:

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 100 cakes per day,what is her average fixed cost?

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

The slope of a long-run average total cost curve exhibiting increasing returns to scale is:

Economies of scale most often occur in industries whose initial fixed cost of plant and equipment is low.

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,her average fixed cost _____ in the range of output between 100 and 400 cakes.

The marginal cost curve intersects the average variable cost curve at:

If average total cost is declining,marginal cost cannot be increasing.

In economics,the short run is defined as:

Use the following to answer question: -(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.Average total cost reaches its minimum value for the _____ bagel.

With one input fixed,a firm will find that as it attempts to produce more,the total product curve increases at a decreasing rate and its marginal product curve is:

Use the following to answer question: -(Table: Long-Run Total Cost)Use Table: Long-Run Total Cost.This soybean grower receives constant returns to scale over the _____ and _____ bushels.

The short-run average total cost curve is U-shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect,while at high output levels the reverse is true.

Tankao makes earbuds for mobile devices.When Tankao produces 20 sets of earbuds,its average variable cost is $5 per set and its average total cost is $8 per set.Tankao's:

When an additional unit of a variable input adds less to total product than the previous unit,the firm has:

A firm's total fixed cost:

When diseconomies of scale occur:

Joan adds one more employee to her construction company.The additional output produced by this employee represents the average product of this employee.