Exam 11: Production and Cost Analysis I

When output is 20, fixed costs are $100 and variable costs are $400. When output rises to 21, fixed costs are $100 and variable costs are $450. This implies that the marginal cost of the last unit of output equals:

Refer to the following graph. This set of cost curves is:

Refer to the graph shown. Marginal product is negative at point:

Refer to the graph shown. Within which part of the production function is the firm most likely to operate?

Refer to the table shown. The average fixed cost of producing 5 units of output is: Units of output Total cost 0 5 1 11 2 16 3 20 4 23 5 25 6 26

What kind of costs remain the same regardless of the level of production?

Refer to the table shown. The average variable cost of producing five bicycles per week is: Output (bicycles per week) Total cast (dollars) 1 100 2 200 3 310 4 440 5 580 6 730 7 900 8 1,200

The vertical distance between the average total cost and average variable cost curves falls as output rises.

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. Average variable cost is minimized when output equals:

Average variable cost is total variable cost:

If the law of diminishing marginal productivity holds true, eventually both the marginal cost curve and the average cost curve must become:

When output is 500, a firm's fixed costs are $10,000 and its variable costs are $15,000. The firm's total costs are therefore:

The law of diminishing marginal productivity states that as more units of a variable input are added, holding other inputs constant (ceteris paribus), the additional output obtained from each new unit of the variable input eventually falls.

The total fixed cost curve is:

If your latest test grade and your average test grade on previous exams are equal, your average test grade will:

If a firm shuts down for a week, during that week its:

Total output per worker is also called:

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. In the graph shown, the marginal cost curve is represented by which curve?

The relationship between the quantity of inputs and the quantity of output is called the:

Refer to the table shown. If the number of workers is three, total output is: Number of workers Mar ginal product of workers 1 2 2 5 3 9 4 14 5 16 6 17 7 18 8 18 9 17 10 15