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 total variable costs are

Average fixed costs

Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. It follows that producing one more robot will cause this firm's

In the short run when the marginal product of labor ________, the marginal cost of an additional unit 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. Micro Oven's average fixed costs of producing nine units of output are

If we know average total cost and the amount of output, then we can always calculate total cost by