Exam 11: Behind the Supply Curve: Inputs and Costs

Use the following to answer question: -(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 51 to 64 bushels of wheat is:

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The average variable cost of producing 5 purses is:

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

Marginal cost is the change in:

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 variable cost of 2 cakes?

The slope of a long-run average total cost curve exhibiting diseconomies of scale is:

Firms choose their level of fixed cost in the long run based on the amount of output that they expect to produce.

Use the following to answer question: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 2 is the _____ cost curve.

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.When Lindsay produces 140 units of produce,her total cost is:

Use the following to answer question: -(Table: Cost Data)Use Table: Cost Data.The average total cost of producing 6 purses is:

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

You run a business producing picture frames.This month,your total cost of production is $10,000,your variable cost of production is $6,000,and you produce 3,000 picture frames.It follows that average _____ cost is _____.

In some complex production processes,such as nuclear power plants,some inputs have to be treated as being fixed even in the long run.

A firm that has diminishing returns in the management's ability to use and disseminate information as it increases production in the long run BEST demonstrates:

Use the following to answer question: -(Table: Output and Costs)Use Table: Output and Costs.When output is 3,average total cost equals:

Which statement is FALSE?

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 200 cakes?

A firm's long-run average total costs increase as it produces more output.This firm has:

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

The term diminishing returns refers to a: