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. The marginal cost of the seventh drone 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 three units of output are

If a firm's demand curve is perfectly elastic, then at the profit-maximizing level of output

If demand in a perfectly competitive market increases, then an individual firm in that industry will see its profits fall.

________ is ΔTR/Δq.

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 two microwave ovens are produced, average variable costs are

The short-run average total cost curve eventually begins to increase at an increasing rate because of

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 total cost is represented by

Refer to the information provided in Table 8.8 below to answer the following question(s). Table 8.8 -Refer to Table 8.8. Assume that Polynesian Fruit sells fruit baskets in a perfectly competitive market. The market price of a fruit basket is $30. To maximize profits, Polynesian Fruit should sell ________ fruit basket(s) and their profit is ________.

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. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output?

It is ________ for a corn producer in a perfectly competitive corn industry to make excess profits because entry into the corn industry is free.

The formula for ________ is TFC/q.

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. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, which of the following statements is true?

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 two units of output are

The law of diminishing marginal returns

If a firm is producing where MR > MC

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, average variable costs are

The total revenue curve for a perfectly competitive firm will be a straight line with positive slope.

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 9th basketball 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 two drones are produced, average fixed costs are