Exam 8: Short-Run Costs and Output Decisions

In the short run, a firm using variable labor and fixed capital inputs achieves the ________ level of output at the minimum point on its average total cost curve.

The short-run is a period of less than one year.

Marginal revenue (MR) 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. If this farmer is producing the profit-maximizing level of output, her marginal cost is

For perfectly competitive firms

Refer to the information provided in Figure 8.1 below to answer the question(s) that follow. Figure 8.1 -Refer to Figure 8.1 above. If Cyndyʹs Floral Arrangements produces 100 silk flower arrangements, the average fixed costs are

Amy spends $6,000 on remodeling a storefront that she then opens as a take-out deli. After opening her deli her business is terrible and she needs an additional $2,000 to keep the deli open. Which of the following is true?

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 seven drones are produced, average fixed costs are

If there is an increase in industry supply while the industry demand curve remains the same, then an individual firm in a perfectly competitive industry currently earning positive profits will see its profits ________.

The ________ part of a perfectly competitive firm's marginal cost curve is the firm's short-run supply curve.

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

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

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. If Sherry produces zero earrings, her total fixed costs are

Average fixed costs rise continuously as quantity of output rises.

Average variable costs fall continuously as quantity of output rises.

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. Average fixed cost is represented by

Refer to the information provided in Figure 8.10 below to answer the question(s) that follow. Figure 8.10 -Refer to Figure 8.10. Panel ________ represents the demand curve facing a perfectly competitive producer of wheat.

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. What is the total revenue from producing the profit-maximizing level of output?

Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. Figure 8.9 -Refer to Figure 8.9. If this farmer produces the profit-maximizing level of hay when the market price is $18 per bale, her total cost would be

A point on a total variable cost curve shows the ________ variable cost a firm will bear to produce a certain output.