Exam 7: Producers in the Short Run

The table below provides the total revenues and costs for a small landscaping company in a recent year. TABLE 7-2 -Refer to Table 7-2. The explicit costs for this firm are

The opportunity cost to a firm of using an asset is zero if

Consider a firmʹs short-run cost curves. Which one of the following types of cost declines over the whole range of output?

Economists use the notation Q = fL,K) to describe

The table below provides the total revenues and costs for a small landscaping company in a recent year. TABLE 7-2 -The period of time over which the firm can vary any of its inputs for a given production technology is called the

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

Marginal cost is defined as the

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 marginal product of labour curve intersects the average product of labour curve from above when the firm changes the amount of labour per unit of time from

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 10 units of output is

Suppose a firm is producing 500 units of output, incurring a total cost of $700 000 and total fixed cost of $100 000) It can be concluded that average variable cost is

The theory of the firm is based on the following two key assumptions:

Suppose a production function for a firm takes the following algebraic form: Q = 0.5)KL - 40L, where Q is the output of paintbrushes per week. Now suppose the firm is operating with 100 units of capital K = 100) and 30 000 units of labour L = 30 000). What is the output of paintbrushes per week?

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 variable cost of producing 305 units of output is

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8-6 -A single proprietorship is a form of business organization which

Real capital includes

It is assumed in standard economic theory that a firm makes decisions in an effort to

Which of the following statements describes an advantage to the owner of a single proprietorship?

Consider the short-run costs of a firm. Suppose the firmʹs total fixed costs are $100 and average variable costs are constant regardless of output. Which of the following is then true?

The point of diminishing marginal productivity is the point where

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 fixed cost of producing 305 units of output is