Exam 11: Output and Costs

-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC₁), Plant 2 (ATC₂), Plant 3 (ATC₃), and Plant 4 (ATC₄). Dustin's minimum efficient scale is

The long run is distinguished from the short run because only in the long run

Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost?

Which of the following shifts the ATC curve upward at the XYZ Co.?

The short run is a time period during which

In the above figure, the maximum number of units that 4 workers can produce is

A firm's average total cost is $60, its average variable cost is $30, and its total fixed cost is $600. Its output is

What is the difference between diminishing marginal returns and diseconomies of scale?

"Diminishing marginal returns" refer to a situation in which the

-Some of the cost curves for Ike's Ice Cream Kitchen are given in the above figure. At which of the following levels of output will AFC be the lowest?

-As output increases, the slope of the curve showing the firm's average fixed cost is

When a firm experiences economies of scale, its ________ cost curve slopes ________ as output increases.

A firm experiences ________ when its ________ downward as output increases.

A cost that has already been made and cannot be recovered is called a

As illustrated in the above figure, after 40 gallons are produced each hour at Ike's Ice Cream Kitchen, the AVC curve starts to slope upward. The AVC starts to slope upward because the

Which of the following shifts the AVC curve upward at Barney's Bagel Bakery?

The average total cost curve eventually slopes upwards because of the

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. If Silvio's uses Plant 1, the marginal product of the 3rd worker is ________ pizzas per week.

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?

The average variable cost curve shifts downward if