Exam 8: Short-Run Costs and Output Decisions

Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. Figure 8.6 -Refer to Figure 8.6. Outdoor Equipment's average variable costs are minimized at the output level

If marginal cost is between average variable cost and average total cost, then

Refer to the information provided in Figure 8.7 below to answer the question(s) that follow. Figure 8.7 -Refer to Figure 8.7. If Buffy gives 17 perms per day, her daily profit is

Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. Figure 8.4 -Refer to Figure 8.4. If twelve microwave ovens are produced, Micro Oven's average total costs are

________ marginal returns implies ________ marginal costs.

Short-run costs that depend on the level of output are

If the average variable cost curve is below the marginal cost curve, then

Marginal costs reflect changes in variable costs.

If a firm's total costs are $100 when 10 units of output are produced and $103 when 11 units of output are produced, the marginal cost of the 11th unit is

Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. Figure 8.8 -Refer to Figure 8.8. At the market price of $8 per bushel, if this farmer produces the profit-maximizing level of soybeans, the profit would be

Any firm's total revenue equals

Amy spends $5,000 on remodeling a storefront that she then opens as a take-out deli. Business has not been very successful, and she needs an additional $1,000 to keep the deli open. Which of the following is true?

Diminishing marginal returns implies

Refer to the information provided in Table 8.5 below to answer the question(s) that follow. Table 8.5 -Refer to Table 8.5. If Phoebe produces five swords, her total costs are

Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. Figure 8.4 -Refer to Figure 8.4. If twelve microwave ovens are produced, Micro Oven's total costs are

A perfectly competitive firm will earn ________ economic profits in the range of output for which the firm's price is above its minimum average total cost.

Total variable costs

If the marginal cost curve is above the average variable cost curve, then

As output decreases, average fixed costs

Perfectly competitive firms