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 8.4. If twelve microwave ovens are produced, Micro Oven's average total costs are

Perfectly competitive firms

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. If the total fixed cost is $50, then average total cost of producing 10 basketballs is

Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. Figure 8.8 -Refer to Figure 8.8. What is the total cost of producing the profit-maximizing level of output?

For a perfectly competitive firm, when P = MC = ATC, the most profit the firm can earn is zero.

Which type of cost does not depend on a firm's output?

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, total variable costs are

For a firm in a perfectly competitive industry, price equals marginal revenue.

The average variable cost of producing ice cream sundaes are minimized when 100 sundaes are produced. The total cost of producing 100 sundaes is $500. If fixed cost of production is $200, what is the marginal cost of producing the 100th sundae?

The average variable cost of producing 250 sundaes is $5. At this level of output, average variable cost is minimized. Which of the following statements is true?

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 twelve units of output are

If marginal cost is increasing, then average total cost must be increasing simultaneously.

Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. Figure 8.8 -Refer to Figure 8.8. A soybean farmer's ________ level of output is 1,000 units of output.

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. If twelve microwave ovens are produced, average variable costs are

For Elliot's dog-walking service, the only variable input is labor. Elliot's labor costs are $300 a day and his service walks 30 dogs per day. To walk 31 dogs per day, his labor costs increase to $305 a day. The marginal cost of walking that 31st dog 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 four drones are produced, total variable costs are

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. If total fixed costs are $100, then average total cost of producing 10 basketballs is

Refer to the information provided in Figure 8.2 below to answer the question(s) that follow. Figure 8.2 -Refer to Figure 8.2 above. The total fixed costs for The Barber Shop are $3,000. If The Barber Shop produces 300 haircuts, the average fixed costs are

Which of the following statements is true?

As output decreases, in the short run