A) TC/q. B) q/TC. C) AFC - AVC. D) ΔTC - Δq. A) TC/q. B) q/TC. C) AFC - AVC. D) ΔTC - Δq.

Refer to the information provided in Table 8.1 below to answer the question(s) that follow. Table 8.1 \[\begin{array} { l c c c } \text { Produce } & \begin{array} { c } \text { Using } \\ \text { Techniques } \end{array} & \begin{array} { c } \text { Units of Variable } \\ \text { K } \end{array} & \begin{array} { c } \text { Inputs } \\ \text { L } \end{array} \\ \hline \text { 1 unit of output } & & & \\ & \text { A } & 8 & 8 \\ & \text { B } & 4 & 12 \\ \text { 2 units of output } & & & \\ & \text { A } & 14 & 12 \\ & \text { B } & 8 & 20 \\ 3 \text { units of output } & & & \\ & \text { A } & 16 & 12 \\ & \text { B } & 12 & 22 \\ \hline \end{array}\] -Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average variable cost of producing two units of output is

A) $20. B) $40. C) $90. D) $100. A) $20. B) $40. C) $90. D) $100.

Refer to the information provided in Table 8.1 below to answer the question(s) that follow. Table 8.1 \[\begin{array} { l c c c } \text { Produce } & \begin{array} { c } \text { Using } \\ \text { Techniques } \end{array} & \begin{array} { c } \text { Units of Variable } \\ \text { K } \end{array} & \begin{array} { c } \text { Inputs } \\ \text { L } \end{array} \\ \hline \text { 1 unit of output } & & & \\ & \text { A } & 8 & 8 \\ & \text { B } & 4 & 12 \\ \text { 2 units of output } & & & \\ & \text { A } & 14 & 12 \\ & \text { B } & 8 & 20 \\ 3 \text { units of output } & & & \\ & \text { A } & 16 & 12 \\ & \text { B } & 12 & 22 \\ \hline \end{array}\] -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?

A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given. A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given.

Exam 8: Short-Run Costs and Output Decisions

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.

(Multiple Choice)

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Question 261

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 seven drones are produced, average fixed costs are

(Multiple Choice)

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Question 262

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. If this farmer is producing the profit-maximizing level of output, her profit is

(Multiple Choice)

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Question 263

ATC is

(Multiple Choice)

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Question 264

If the marginal cost curve is below the average variable cost curve, then

(Multiple Choice)

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Question 265

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 8.4. Micro Oven's average fixed costs of producing two units of output are

(Multiple Choice)

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Question 266

Refer to the information provided in Table 8.1 below to answer the question(s) that follow. Table 8.1 Produce Using Techniques Units of Variable K Inputs L 1 unit of output A 8 8 B 4 12 2 units of output A 14 12 B 8 20 3 units of output A 16 12 B 12 22 -Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average variable cost of producing two units of output is

(Multiple Choice)

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Question 267

If marginal cost is above average variable cost, then

(Multiple Choice)

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Question 268

An individual wheat farmer produces wheat in a perfectly competitive market. A decrease in the market demand for wheat will cause the farmer's marginal revenue to and his profit-maximizing level of output to .

(Multiple Choice)

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Question 269

A firm will begin to experience diminishing returns at the point where

(Multiple Choice)

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Question 270

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

(Multiple Choice)

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Question 271

As output increases, average fixed costs

(Multiple Choice)

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Question 272

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 demand curve facing a perfectly competitive producer of wheat.

(Multiple Choice)

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Question 273

Average total cost is

(Multiple Choice)

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Question 274

The upward-sloping portion of the perfectly competitive firm's average total cost curve is the firm's short-run supply curve.

(True/False)

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Question 275

If marginal cost equals average variable cost, average variable cost will

(Multiple Choice)

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Question 276

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

(Multiple Choice)

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Question 277

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

(Multiple Choice)

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Question 278

Refer to the information provided in Table 8.1 below to answer the question(s) that follow. Table 8.1 Produce Using Techniques Units of Variable K Inputs L 1 unit of output A 8 8 B 4 12 2 units of output A 14 12 B 8 20 3 units of output A 16 12 B 12 22 -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?

(Multiple Choice)

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Question 279

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 one drone is produced, average fixed costs are

(Multiple Choice)

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Question 280

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.

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 seven drones are produced, average fixed costs are

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. If this farmer is producing the profit-maximizing level of output, her profit is

ATC is

If the marginal cost curve is below the average variable cost curve, then

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 8.4. Micro Oven's average fixed costs of producing two units of output are

If marginal cost is above average variable cost, then

An individual wheat farmer produces wheat in a perfectly competitive market. A decrease in the market demand for wheat will cause the farmer's marginal revenue to and his profit-maximizing level of output to .

A firm will begin to experience diminishing returns at the point where

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

As output increases, average fixed costs

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 demand curve facing a perfectly competitive producer of wheat.

Average total cost is

The upward-sloping portion of the perfectly competitive firm's average total cost curve is the firm's short-run supply curve.

If marginal cost equals average variable cost, average variable cost will

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

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

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 one drone is produced, average fixed costs are

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 8: Short-Run Costs and Output Decisions

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.

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 seven drones are produced, average fixed costs are

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. If this farmer is producing the profit-maximizing level of output, her profit is

ATC is

If the marginal cost curve is below the average variable cost curve, then

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 8.4. Micro Oven's average fixed costs of producing two units of output are

If marginal cost is above average variable cost, then

An individual wheat farmer produces wheat in a perfectly competitive market. A decrease in the market demand for wheat will cause the farmer's marginal revenue to ________ and his profit-maximizing level of output to ________.

A firm will begin to experience diminishing returns at the point where

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

As output increases, average fixed costs

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 demand curve facing a perfectly competitive producer of wheat.

Average total cost is

The upward-sloping portion of the perfectly competitive firm's average total cost curve is the firm's short-run supply curve.

If marginal cost equals average variable cost, average variable cost will

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

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

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 one drone is produced, average fixed costs are

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

An individual wheat farmer produces wheat in a perfectly competitive market. A decrease in the market demand for wheat will cause the farmer's marginal revenue to and his profit-maximizing level of output to .