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. $\begin{array}{|l|l|} \hline\begin{array}{l} \text { Labour per unit of } \\ \text { time } \end{array}&\text { Total Output }\\\hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}$ $\text { TABLE 7- } 4$ -Refer to Table 7- 4. Average fixed costs for 305 units of output is approximately

A) 33 cents. B) 41 cents. C) 45 cents. D) 74 cents. E) 82 cents. A) 33 cents. B) 41 cents. C) 45 cents. D) 74 cents. E) 82 cents. A

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. $\begin{array}{|l|l|} \hline\begin{array}{l} \text { Labour per unit of } \\ \text { time } \end{array}&\text { Total Output }\\\hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 75 \\ \hline 3 & 175 \\ \hline 4 & 250 \\ \hline 5 & 305 \\ \hline \end{array}$ $\text { TABLE 7- } 4$ -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

A) 0 to 1 units. B) 1 to 2 units. C) 2 to 3 units. D) 3 to 4 units. E) 4 to 5 units. A) 0 to 1 units. B) 1 to 2 units. C) 2 to 3 units. D) 3 to 4 units. E) 4 to 5 units. E

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Output } & \begin{array} { l } \text { Marginal } \\ \text { Cost } \end{array} & \begin{array} { l } \text { Average } \\ \text { Variable Cost } \end{array} \\ \hline 50 & 60 & 140 \\ \hline 70 & 45 & 115 \\ \hline 90 & 35 & 95 \\ \hline 110 & 30 & 80 \\ \hline 130 & 35 & 65 \\ \hline 150 & 60 & 60 \\ \hline 170 & 105 & 65 \\ \hline 190 & 180 & 75 \\ \hline 210 & 230 & 90 \\ \hline 230 & 290 & 110 \\ \hline \end{array}\\ \text { TABLE 7- } 6 \end{array}\] -Refer to Table 7- 6. Suppose this firm is producing 210 pairs of shoes per time period and that the variable factor of production is labour. Which of the following statements best describes this firm's production?

A) Additional units of labour employed will increase the average variable cost of producing shoes. B) The firm is producing below its capacity. C) Marginal cost is higher than average variable cost, so marginal product must be rising. D) Marginal cost is higher than average variable cost, so average product must be rising. E) Each additional unit of labour employed reduces the average variable cost of the pairs of shoes. A) Additional units of labour employed will increase the average variable cost of producing shoes. B) The firm is producing below its capacity. C) Marginal cost is higher than average variable cost, so marginal product must be rising. D) Marginal cost is higher than average variable cost, so average product must be rising. E) Each additional unit of labour employed reduces the average variable cost of the pairs of shoes.

The table below provides information on output per month and short- run costs for a firm producing outdoor wooden lounge chairs. \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { TFC } & \text { TVC } & \text { TC } \\ \hline 200 & 200 & 400 \\ \hline 200 & 220 & 420 \\ \hline 200 & 240 & 440 \\ \hline 200 & 260 & 460 \\ \hline 200 & 350 & 550 \\ \hline 200 & 810 & 1010 \\ \hline \end{array}\\ \text { TABLE 7- } 5 \end{array}\] -Refer to Table 7- 5. Given the information in the table about short- run costs, this firm would minimize the average variable cost of production when producing

A) 20 chairs. B) 15 chairs. C) 30 chairs. D) 10 chairs. E) 25 chairs. A) 20 chairs. B) 15 chairs. C) 30 chairs. D) 10 chairs. E) 25 chairs.

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Output } & \begin{array} { l } \text { Marginal } \\ \text { Cost } \end{array} & \begin{array} { l } \text { Average } \\ \text { Variable Cost } \end{array} \\ \hline 50 & 60 & 140 \\ \hline 70 & 45 & 115 \\ \hline 90 & 35 & 95 \\ \hline 110 & 30 & 80 \\ \hline 130 & 35 & 65 \\ \hline 150 & 60 & 60 \\ \hline 170 & 105 & 65 \\ \hline 190 & 180 & 75 \\ \hline 210 & 230 & 90 \\ \hline 230 & 290 & 110 \\ \hline \end{array}\\ \text { TABLE 7- } 6 \end{array}\] -Refer to Table 7- 6. If the firm produces 130 pairs of shoes, and the fixed cost is $550, then the firm's total cost is

A) $8000. B) $7000. C) $12 000. D) $9000. E) $10 000. A) $8000. B) $7000. C) $12 000. D) $9000. E) $10 000.

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. \[\begin{array}{l} \begin{array} { | l | l | } \hline \text { Labour per period } & \text { Total Output per period } \\ \hline 0 & 0 \\ \hline 1 & 10 \\ \hline 2 & 30 \\ \hline 3 & 90 \\ \hline 4 & 132 \\ \hline 5 & 150 \\ \hline \end{array}\\ \text { TABLE 7- } 3 \end{array}\] -Refer to Table 7- 3. The marginal product of labour is at its maximum when the firm changes the amount of labour hired from

A) 0 to 1 unit. B) 1 to 2 units. C) 2 to 3 units. D) 3 to 4 units. E) 4 to 5 units. A) 0 to 1 unit. B) 1 to 2 units. C) 2 to 3 units. D) 3 to 4 units. E) 4 to 5 units.

The table below provides information on output per month and short- run costs for a firm producing outdoor wooden lounge chairs. \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { TFC } & \text { TVC } & \text { TC } \\ \hline 200 & 200 & 400 \\ \hline 200 & 220 & 420 \\ \hline 200 & 240 & 440 \\ \hline 200 & 260 & 460 \\ \hline 200 & 350 & 550 \\ \hline 200 & 810 & 1010 \\ \hline \end{array}\\ \text { TABLE 7- } 5 \end{array}\] -Refer to Table 7- 5. At what level of output is this firm at its capacity?

A) 10 chairs B) 20 chairs C) 30 chairs D) 25 chairs E) 15 chairs A) 10 chairs B) 20 chairs C) 30 chairs D) 25 chairs E) 15 chairs

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. \[\begin{array}{l} \begin{array} { | l | l | } \hline \text { Labour per period } & \text { Total Output per period } \\ \hline 0 & 0 \\ \hline 1 & 10 \\ \hline 2 & 30 \\ \hline 3 & 90 \\ \hline 4 & 132 \\ \hline 5 & 150 \\ \hline \end{array}\\ \text { TABLE 7- } 3 \end{array}\] -Refer to Table 7- 3. The average product of labour is highest when the firm hires

A) 1 unit of labour. B) 2 units of labour. C) 3 units of labour. D) 4 units of labour. E) 5 units of labour. A) 1 unit of labour. B) 2 units of labour. C) 3 units of labour. D) 4 units of labour. E) 5 units of labour.