Exam 11: Behind the Supply Curve: Inputs and Costs

Use the following to answer question: -(Figure: Short-Run Costs)Use Figure: Short-Run Costs.The vertical difference between curve B and curve C at any quantity of output is _____ cost.

Use the following to answer question: -(Table: Output and Marginal Cost)Use Table: Output and Marginal Cost.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.How many statues should you produce to minimize your average variable costs?

In the long run,all costs are:

The production function provides information about:

When marginal cost is BELOW average variable cost,average variable cost must be:

The _____ is the increase in output that is produced when a firm hires an additional worker.

Use the following to answer question: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.At 6 units of output,average variable cost is approximately:

Tankao makes Bluetooth headphones for mobile devices.When 50 Bluetooth headphones are produced in the short run,the average variable cost is $30.Fixed costs are greater than zero.Therefore,Tankao's average _____ cost is _____.

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 fixed cost?

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fourth purse is:

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

If a firm has to increase output suddenly to meet an increase in demand,its average total cost will decrease in the short run until it has time to add physical capital.

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 60,and when she hires four workers,total product is 75.The slope of the marginal product curve between two and four workers hired is:

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The average variable cost of producing 2 purses is:

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the second purse is:

The long run is a planning period:

When marginal cost is ABOVE average variable cost,average variable cost must be:

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 fixed cost of producing 25 statues is:

Suppose Cyd knows the average total cost of producing 9 scones is $5,while the average total cost of producing 10 scones is $5.20.What is the marginal cost of the tenth scone?

You own a deli.Which decision is most likely to be made in the LONG run at your deli?