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 three pairs of earrings, her total variable 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. What is the total cost of producing zero units of output?

A dairy company, Farley Farm, has total costs of $10,000 and total variable costs of $3,000. Farley Farm's total fixed costs are

Perfectly competitive firms are price setters.

Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will cause the individual corn farmerʹs marginal revenue to ________ and their profit-maximizing level of output to ________.

Dominic sells pizza slices for $5 on the Santa Monica Pier. He currently sells 500 slices of pizza per day.This is a perfectly competitive business, and Dominic faces a perfectly price elastic demand curve. If he wants to try to increase daily revenues to $3,000, he should

The profit-maximizing level for all firms, regardless of industry structure, is the output level where

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 profit is

The Lawn Ranger, a landscaping company, has total costs of $5,000 and total variable costs of $1,000. The Lawn Ranger's total fixed costs are

Assume Cathy's Cupcake Company operates in a perfectly competitive market producing 10,000 cupcakes per day. At this output level, marginal cost exceeds this firmʹs price. Assuming price exceeds average variable cost, to maximize profits Cathy's should

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 two swords, her marginal cost is

Refer to the information provided in Table 8.3 below to answer the question(s) that follow. Table 8.3 -Refer to Table 8.3. What is the total cost of producing zero units of output?

Both Kate and John own saltwater taffy factories. Kate's factory has low fixed costs and high variable costs. John's factory has high fixed costs and low variable costs. Currently, each factory is producing 1,000 boxes of taffy at the same total cost. Complete the following statement with the correct answer. If each produces

If marginal cost is below average total cost, average total cost will

Economists usually assume that capital is a ________ input in the ________ run.

Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $6 and its total variable cost is $400. The total cost of producing 100 widgets is

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 industry demand curve for the perfectly competitive wheat industry.

The closest example of a perfectly competitive industry 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. This farmer's profit-maximizing level of output is ________ units 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. At the market price of $18, if this farmer produces the profit-maximizing quantity, what profit will he make?