Exam 7: Producers in the Short Run

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3.The average variable cost when this firm is producing 90 units of output is

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3.The average total cost when producing 150 units of output is approximately

If increasing quantities of a variable factor are applied to a given quantity of fixed factors,then the law of diminishing returns tells us that

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3.What is the total output per period when this firm is employing labour such that the marginal product of labour is at its maximum?

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Refer to Table 7-4.The total cost of producing 175 units of output is

Economic profits are less than accounting profits because the calculation of economic profit

We can predict that resources will move into an industry whenever

The table below provides the annual revenues and costs for a family-owned firm producing catered meals. TABLE 7-1 -Refer to Table 7-1.The accounting profits for this family-owned firm are

The point of diminishing marginal productivity is the point where

Jodi recently went into business producing widgets.Which of the following would be a fixed cost for her firm? 1.labour costs of $1000 per month 2.raw material costs of $5000 per month 3.a one-year lease on a building of $12 000

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Refer to Table 7-4. Marginal product of labour begins decreasing with the ________ unit of labour hired.Average product of labour begins decreasing with the ________ unit of labour hired.

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3. The average product of labour when the firm hires 3 units of labour is ________. The average product of labour when the firm hires 4 units of labour is ________.

A firm that has two or more owners who share decision-making power as well as the firmʹs profits is called

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3.The average variable cost when producing 132 units of output is approximately

Which of the following statements about the relationship between marginal product and average product is correct?

Consider a house-construction firm with fixed capital.The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers.If it is currently building 8.8 houses per year,which of the following is true?

The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars. TABLE 7-6 -Refer to Table 7-6.The firmʹs marginal product of its variable factor is maximized when it produces units of output.

Suppose a production function for a firm takes the following algebraic form: Q = 2KL - (0.2)L²,where Q is the output of sweaters per day.Now suppose the firm is operating with 8 units of capital (K =8)and 10 units of labour (L=10).What is the output of sweaters?

ʺAn objective of firms is to maximize profits.ʺ This statement

Which of the following items is part of a firmʹs financial capital as distinct from its real capital?