Exam 11: Behind the Supply Curve: Inputs and Costs

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

A total product curve indicates the relationship between _____ when all other inputs are fixed.

Use the following to answer question: -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from A to B.

An input whose quantity can be changed in the short run is a(n)_____ input.

The long run is the period during which fixed costs do not change.

A business produces 10 pairs of eyeglasses.It incurs $35 in average total cost and $5 in average fixed cost.The average variable cost of producing 10 pairs of eyeglasses 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 1 mixer 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 marginal cost of the fifth cake?

At quantities greater than the long-run minimum cost per unit of output,the long-run average total cost curve is _____ of the corresponding short-run average total cost curve.

If the marginal cost of the first sports jersey is $21,the marginal cost of the second sports jersey is $40,and the marginal cost of the third jersey is $17,what is the total variable cost of producing three jerseys?

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 total cost _____ in the range of output between 100 and 400 cakes.

Use the following to answer question: -(Figure: A Firm's Cost Curves)Use Figure: A Firm's Cost Curves.The curve X represents the firm's _____ cost curve.

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

When a firm adds capital,in the short run workers will be:

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 marginal cost of the fourth cake?

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 total cost of 5 cakes?

If your firm is operating in the negatively sloped portion of a long-run average total cost curve,then your production exhibits:

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.Lindsay's variable costs of production:

A _____ is an organization that produces goods or services for sale.

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 marginal cost of the second cake?