Exam 11: Behind the Supply Curve: Inputs and Costs

Use the following to answer question: -(Figure: The Total Product)Use Figure: The Total Product.As labor is hired between L₁ and L₂,the total product is _____ and the marginal product is _____.

At quantities less 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.

(Table: Linda's Copy Shop Production)Use Table: Linda's Copy Shop Production.Linda's production runs into diminishing returns to her variable inputs when she employs the _____ unit.

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 25 statues is:

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 0 to A.

Marginal cost is the:

Use the following to answer question: -(Figure: The Total Product)Use Figure: The Total Product.For hiring labor between zero and L₁,the:

Kaile Cakes produces 10 cakes per day.The marginal cost of the tenth cake is $24,and average total cost of 10 cakes is $6.The average total cost of 9 cakes 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 2 mixers and bakes 200 cakes per day,what is her average total cost?

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 100 cakes?

Use the following to answer question: -(Figure: The Total Product)Use Figure: The Total Product.Labor added from L₁ and up to L₂ is:

(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.The marginal product of the fourth worker is _____ apples.

For Heidi,the marginal cost of producing one additional photograph equals the change in _____ cost divided by the change in the _____ of photographs.

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

Use the following to answer question: -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 3 is the _____ cost curve.

The eventual increase in AVC as output increases is the _____ effect.

As production increases and the fixed cost is divided by larger quantities of output,average fixed cost drops.This is referred to as the _____ effect.

(Table: Lindsay's Farm)Use Table: Lindsay's Farm.Lindsay's fixed cost of production is:

The larger the output,the more output over which fixed cost is distributed.Called the _____ effect,this leads to a _____ average _____ cost as output rises.

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