Exam 8: Short-Run Costs and Output Decisions

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 one sword, her total variable costs are

An individual firm's demand curve in a perfectly competitive market is

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow. Figure 8.5 -Refer to Figure 8.5. If six drones are produced, average fixed costs are

An individual wheat farmer produces wheat in a perfectly competitive market. A decrease in the market demand for wheat will cause the farmer's marginal revenue to ________ and his profit-maximizing level of output to ________.

The decision by firms of the quantity of each input to demand is based on

Refer to the information provided in Table 8.7 below to answer the following question(s). Table 8.7 -Refer to Table 8.7. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $15. To maximize profits, Exotic Fruit should sell ________ fruit baskets and their profit is ________.

Refer to the information provided in Figure 8.3 below to answer the question(s) that follow. Figure 8.3 -Refer to Figure 8.3. If total fixed costs are $100, then average total cost of producing 10 basketballs is

Strawberries, a normal good, are produced in a perfectly competitive market. Average consumer incomes increase. This will cause the individual strawberry farmerʹs marginal revenue to ________ and their profit-maximizing level of output to ________.

Average total cost

If the average variable cost of the fifth hat is $50, then the total variable cost of five hats is

Refer to the information provided in Table 8.2 below to answer the question(s) that follow. Table 8.2 -Refer to Table 8.2. Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price for earrings is $60. To maximize profits Sherry should produce ________ pairs of earrings.

Refer to the information provided in Table 8.1 below to answer the question(s) that follow. Table 8.1 -Refer to Table 8.1. In the short run, if the price of labor (L) is $5 per unit, the price of capital (K) is $10 per unit, and firms attempt to minimize costs, then this firm's total cost of producing one unit of output is

If a perfectly competitive firm is currently producing where P = MC and MC = ATC, then the firm will earn ________ profits.

The decision by firms of the quantity of output to supply is based on

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow. Figure 8.5 -Refer to Figure 8.5. If six drones are produced, average variable costs are

Total variable cost divided by output is average variable cost.

Profit-maximizing firms want to ________ the difference between total revenue and total cost.

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 variable costs are

Because marginal cost is always ________ in the short run, total variable cost always ________ when output increases.

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow. Figure 8.5 -Refer to Figure 8.5. If one drone is produced, average fixed costs are