Exam 8: Short-Run Costs and Output Decisions

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 variable costs are

A firm in a perfectly competitive market has ________ control over price because each firm's product perfectly substitutes for every other firm's product.

If marginal cost is increasing, then average variable cost must be increasing simultaneously.

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. Micro Oven's average fixed costs of producing six units of output are

The formula for average fixed costs is

If a firm's total costs are $100 when 10 units of output are produced and $105 when 11 units of output are produced, the marginal cost of the 11th unit is

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 the market price of hay falls to $18, then to maximize profits this farmer should produce

If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.

Total variable costs ________ with decreasing output.

A firm facing a ________ demand curve, ceteris paribus, will have zero quantity demanded if it raises its price above the market price.

In the short run, ________ costs exceed ________ costs.

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 zero swords, her total fixed costs are

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. The marginal cost of the eleventh basketball is

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. If the firm is in a perfectly competitive industry with a market price of $15 per unit, the firm will produce ________ units and earn a profit of ________.

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

If a firm's total costs are $80 when 10 units of output are produced and $90 when 11 units of output are produced, the marginal cost of the 11th unit is

The fast-food industry is not considered perfectly competitive because

If an individual perfectly competitive firm charges a price below the industry equilibrium price, it will

If the average variable cost of the fifth hat is $30, then the total variable cost of five hats 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. Micro Oven's average fixed costs of producing twelve units of output are