Exam 11: Output and Costs

Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. If Rogue's average total cost decreases as the business increases plant size, then Rogue experiences:

-The table above shows Randy's Shirts' short-run production function. Randy hires workers at a wage rate of $50 a day and his total fixed cost is $100. a) What is the marginal product of the 3rd worker? b) What is Randy's average fixed cost if 48 shirts are produced? c) What is Randy's average variable cost if 56 shirts are produced? d) What is Randy's marginal cost of producing the 52nd sweater? e) What is Randy's average total cost if 48 sweaters are produced?

-The above figure shows the costs at Barney's Bagel Bakery. For which of the following levels of output does the marginal product of labor exceed the average product of labor?

-In the above figure, the long-run average cost curve exhibits economies of scale

-The above figure represents the average total cost curves of a wheat farmer. a) Which average total cost curve has the lowest average total cost of producing 30,000 bushels of wheat? b) Over what range of output is the farmer experiencing economies of scale? c) Over what range of output is the farmer experiencing diseconomies of scale? d) Which average total cost curve has the lowest possible average cost of production? e) Which average total cost curve represents the largest plant?

-The above table shows the short-run total product schedule for the campus book store. At what levels of books sold per hour will the marginal product of labor be greater than the average product of labor?

In the figure above, ________ is a technologically efficient point.

-The above (incomplete) table provides information about the relationships between output and various cost measures. The total cost (TC) of producing 9 units of output is

-In the above figure, the intersection of curves A and B is the point at which

A firm's total fixed cost (TFC) is a cost

Total Product, Marginal Product, Average Product -In the above table, the marginal product of the second worker is

A firm's long run cost is the cost of production when the firm

-Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. What is the marginal cost of the 19th sweater?

-The above table shows some cost data for Tracey's Tents. What is the average fixed cost when 4 tents are produced?

-Suppose the local newspaper hires students to fold and bag newspapers for delivery and pays them $20 per shift. Five students can fold and bag 300 newspapers per shift. The fourth student added 50 newspapers to total output. The capital cost is fixed at $50 per shift. a) Is the newspaper operating in the long run or short run? Why? b) What is the average product of 5 students? c) Calculate the total fixed, total variable, and total costs of folding and bagging 300 newspapers. d) Calculate the average fixed, average variable, and average total costs of folding and bagging 300 newspapers. e) What is the marginal cost of one of the 50 newspapers folded and bagged by the fourth student?

The short run is a period of time in which

-The above table shows the short-run total product schedule for the campus book store. With which employee do diminishing marginal returns set in?

When the Rent-A-Limo Company negotiates its new labor contract it finds that the wages it must pay drivers have increased. How does this wage hike affect the Rent-A-Limo Company's average fixed cost, average variable cost, average total cost, and marginal cost?

-The average total cost curves for plants A, B, C, and D are shown in the above figure. It is possible that the long-run average cost curve runs through points

Which of the following statements is correct?