Exam 8: Short-Run Costs and Output Decisions

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 one pair of earrings, her total variable costs are

Refer to the information provided in Figure 8.2 below to answer the question(s) that follow. Figure 8.2 -Refer to Figure 8.2 above. If The Barber Shop produces more than 300 hair cuts, the average fixed costs are

Refer to the information provided in Table 8.6 below to answer the question(s) that follow. Table 8.6 -Refer to Table 8.6. The marginal cost of the fourth unit is ________ and the average total cost of four units 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. The marginal cost of the second drone is

As output increases, average fixed costs

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 Equipmentʹs ________ are minimized at the output level where curves 1 and 3 intersect.

Average variable and average total costs get farther apart as output decreases because ________ as output decreases.

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 six microwave ovens are produced, Micro Oven's total fixed costs are

Firms have ________ over their ________ costs in the short run.

If an individual perfectly competitive firm charges a price ________ the industry equilibrium price while competitors charge the equilibrium price, the firm will sell all that it produces but forgo revenue that it could have had.

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. Assume that Phoebe is producing swords in a perfectly competitive market and the market price for swords is $30. To maximize profits Phoebe should produce ________ swords.

If a firmʹs demand curve is ________, then at the profit-maximizing level of output P = MR = MC.

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, total variable costs are

The marginal revenue curve for a perfectly competitive firm will be downward sloping.

In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is positive and increasing.

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 the market price of soybeans ________, then to maximize profits this farmer should produce 700 bushels of soybeans.

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. Marginal cost is represented by

The Lawn Ranger, a landscaping company, has total costs of $4,000 and total variable costs of $1,000. The Lawn Ranger's total fixed costs are

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

TC -TVC =