Refer to the following: The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. \[\begin{array} { c c } \text { units of } & \text { units of } \\ \text { Labor } & \text { Output } \\ \hline 2 & 10 \\ 4 & 26 \\ 0 & 46 \\ 8 & 60 \\ 10 & 72 \\ 12 & 80 \end{array}\] -If the firm produces 60 units of output, what is average variable cost?

A) $5 B) $7.67 C) $20 D) $57.50 E) $2.67 A) $5 B) $7.67 C) $20 D) $57.50 E) $2.67

Refer to the following: The amount of total output produced from various combinations of labor and capital. $\begin{array}{cccc} &\text { Units of Capital }\\ && 1 & 2 & 3&4 \\ \hline &1 & 50&120&160&180 \\ \text {Units }&2 & 110&260&360&390 \\ \text {of }&3 & 150&360&510&560\\ \text {Labor }&4 & 170&430&630&690 \\ &5 & 160&4801&710&790 \\ \end{array}$ -If the capital stock is fixed at one unit, diminishing returns begin with the

A) first unit of labor. B) second unit of labor. C) third unit of labor. D) fourth unit of labor. E) fifth unit of labor. A) first unit of labor. B) second unit of labor. C) third unit of labor. D) fourth unit of labor. E) fifth unit of labor.

Refer to the following: $\begin{array}{rr} \text { Output } & \text { Total Cost } \\ \hline 0 & \$ 300 \\ 50 & 800 \\ 100 & 1050 \\ 150 & 1650 \\ 200 & 2400 \end{array}$ -What is total variable cost when 100 units of output are produced?

A) $5 B) $10.50 C) $105 D) $1050 E) none of the above A) $5 B) $10.50 C) $105 D) $1050 E) none of the above

A) increases as output increases. B) decreases as output increases. C) increases if marginal cost is increasing. D) increases if marginal cost is greater than average fixed cost. A) increases as output increases. B) decreases as output increases. C) increases if marginal cost is increasing. D) increases if marginal cost is greater than average fixed cost.

Refer to the following: \[\begin{array} { c c c c } \begin{array} { c } \text { Units } \\ \text { of Labor } \end{array} & \begin{array} { c } \text { Totel } \\ \text { Praduet } \end{array} & \begin{array} { c } \text { Average } \\ \text { Product } \end{array} & \begin{array} { c } \text { Narginal } \\ \text { Produet } \end{array} \\ \hline 1 & - & - & 100 \\ 2 & - & 125 & - \\ 3 & 300 & - & - \\ 4 & - & - & 20\\ 5&290&-&- \end{array}\] -In the table above, how much does the third unit of labor ADD to total output?

A) 100 B) 125 C) 150 D) 300 E) none of the above A) 100 B) 125 C) 150 D) 300 E) none of the above

A) the cost of any input with a fixed price per unit. B) a cost which increases in a fixed proportion as output increases. C) a cost the firm must pay even if output is zero. D) both b and c E) all of the above A) the cost of any input with a fixed price per unit. B) a cost which increases in a fixed proportion as output increases. C) a cost the firm must pay even if output is zero. D) both b and c E) all of the above

Refer to the following: The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. \[\begin{array} { c c } &\text { Average } \\ \text { Output } & \text { Variable Cost }\\ \hline 10 & \$ 40 \\ 20 & 30 \\ 30 & 45 \\ 40 & 60 \\ \hline \end{array}\] -If the firm produces 40 units of output, what is total variable cost?

A) $1.50 B) $60 C) $100 D) $2,400 E) none of the above A) $1.50 B) $60 C) $100 D) $2,400 E) none of the above

Refer to the following: $\begin{array}{ccccccccc} & & \text { Total } & \text { Total } & \text { Average } & \text { Average } & \text { Average } & \\ & \text { Total } & \text { Fixed } & \text { Variable } & \text { Fixed } & \text { Variable } & \text { Total } & \text { Marginal } \\ \text { Output } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost }\\ \hline 100&560&-&60&-&-&-&-\\200&-&-&-&-&-&-&4.00\\300&-&-&-&-&4.00-&-&-\\400&-&-&-&-&-&7.00&-\\ \end{array}$ -What is the marginal cost of the 250th unit of output?

A) $0.14 B) $2.40 C) $4.00 D) $7.40 E) none of the above A) $0.14 B) $2.40 C) $4.00 D) $7.40 E) none of the above

Refer to the following: The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. \[\begin{array} { c c } \text { units of } & \text { units of } \\ \text { Labor } & \text { Output } \\ \hline 2 & 10 \\ 4 & 26 \\ 0 & 46 \\ 8 & 60 \\ 10 & 72 \\ 12 & 80 \end{array}\] -How much does the 12th unit of output add to the firm's total variable cost?

A) $2.50 B) $4 C) $5 D) $20 E) $40 A) $2.50 B) $4 C) $5 D) $20 E) $40

Refer to the following: Amount of total output produced from various combinations of labor and capital. $\begin{array}{cccc} &\text { Units of Capital }\\ && 1 & 2 & 3 \\ \hline &1 & 80 & 100 & 120 \\ \text {Units }&2 & 180 & 220 & 260 \\ \text {of }&3 & 270 & 330 & 390 \\ \text {Labor }&4 & 340 & 420 & 500 \\ &5 & 390 & 490 & 590 \\ &6 & 410 & 530 & 650 \end{array}$ -If capital is fixed at one unit, diminishing returns begin with the

A) first unit of labor. B) second unit of labor. C) third unit of labor. D) fourth unit of labor. E) none of the above A) first unit of labor. B) second unit of labor. C) third unit of labor. D) fourth unit of labor. E) none of the above

Refer to the following: The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. \[\begin{array} { c c } &\text { Average } \\ \text { Output } & \text { Variable Cost }\\ \hline 10 & \$ 40 \\ 20 & 30 \\ 30 & 45 \\ 40 & 60 \\ \hline \end{array}\] -If the firm produces 20 units of output, what is average fixed cost?

A) $1.50 B) $50 C) $150 D) $600 E) none of the above A) $1.50 B) $50 C) $150 D) $600 E) none of the above

Refer to the following: The amount of total output produced from various combinations of labor and capital. \[\begin{array}{l} \text { Units of Capital }\\ \begin{array} { c c c c c c } & & 1 & 2 & 3 & 4 \\ \hline \text { Units } & 1 & 20 & 36 & 48 & 53 \\ \text { of } & 2 & 38 & 68 & 88 & 94 \\ \text { Iabor } & 3 & 53 & 94 & 122 & 133 \\ & 4& 63 & 112 & 148 & 164 \\ & 5 & 68 & 120 & 164 & 184 \end{array} \end{array}\] -If the amount of labor used increases from three to four units, the marginal product of the second unit of capital

A) increases by 8 units. B) increases by 49 units. C) decreases by 14 units. D) decreases by 49 units. E) none of the above A) increases by 8 units. B) increases by 49 units. C) decreases by 14 units. D) decreases by 49 units. E) none of the above

Refer to the following: $\begin{array}{rr} \text { Output } & \text { Total Cost } \\ \hline 0 & \$ 300 \\ 50 & 800 \\ 100 & 1050 \\ 150 & 1650 \\ 200 & 2400 \end{array}$ -The additional cost of producing the 60th unit of output is:

A) $5 B) $250 C) $8 D) $120 E) $80 A) $5 B) $250 C) $8 D) $120 E) $80

Refer to the following: $\begin{array}{cccc} \begin{array}{c} \text { Number of } \\ \text { Workers } \end{array} & \begin{array}{c} \text { Total } \\ \text { Product } \end{array} & \begin{array}{c} \text { Average } \\ \text { Product } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Product } \end{array} \\ \hline 5 &- & 28 & -30 \\ 10 & - & - & 30\\ 15 & 420 & - &- \\ 20 &- & - &22\\ \end{array}$ -The maximum amount that can be produced using 20 workers is

A) 442 units. B) 530 units. C) 22 units. D) 420 units. E) 26.5 units. A) 442 units. B) 530 units. C) 22 units. D) 420 units. E) 26.5 units.

Exam 8: Production and Cost in the Short Run

Refer to the following: The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. units of units of Labor Output 2 10 4 26 0 46 8 60 10 72 12 80 -If the firm produces 60 units of output, what is average variable cost?

(Multiple Choice)

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Question 21

Refer to the following: The wage rate is $600 and total fixed cost is $15,000. -When there are 40 workers, what is average variable cost?

(Multiple Choice)

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Question 22

Refer to the following: The amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 4 1 50 120 160 180 Units 2 110 260 360 390 of 3 150 360 510 560 Labor 4 170 430 630 690 5 160 4801 710 790 -If the capital stock is fixed at one unit, diminishing returns begin with the

(Multiple Choice)

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Question 23

Refer to the following: The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. -When the firm uses 40 units of labor, what is AVC at this level of output?

(Multiple Choice)

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Question 24

Refer to the following: Output Total Cost 0 \ 300 50 800 100 1050 150 1650 200 2400 -What is total variable cost when 100 units of output are produced?

(Multiple Choice)

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Question 25

Assume capital is fixed at 2 units and the wage rate of labor is $200. a. As labor is increased from 1 to 2 units, AVC (rises, falls) from $ to $. b. As labor is increased from 1 to 2 units, MC (rises, falls) from $ to $. c. As labor is increased from 3 to 4 units, AVC (rises, falls) from $ to $. d. As labor is increased from 3 to 4 units, MC (rises, falls) from to .

(Short Answer)

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Question 26

Average fixed cost

(Multiple Choice)

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Question 27

A firm's cost of production is affected by changes in

(Multiple Choice)

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Question 28

Refer to the following: Units of Labor Totel Praduet Average Product Narginal Produet 1 - - 100 2 - 125 - 3 300 - - 4 - - 20 5 290 - - -In the table above, how much does the third unit of labor ADD to total output?

(Multiple Choice)

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Question 29

A fixed cost is

(Multiple Choice)

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Question 30

Refer to the following: The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. Average Output Variable Cost 10 \ 40 20 30 30 45 40 60 -If the firm produces 40 units of output, what is total variable cost?

(Multiple Choice)

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Question 31

A firm is using a single variable input, labor, with a given amount of a fixed input, capital. If the level of capital is decreased,

(Multiple Choice)

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Question 32

Refer to the following: Total Total Average Average Average Total Fixed Variable Fixed Variable Total Marginal Output Cost Cost Cost Cost Cost Cost Cost 100 560 - 60 - - - - 200 - - - - - - 4.00 300 - - - - 4.00- - - 400 - - - - - 7.00 - -What is the marginal cost of the 250th unit of output?

(Multiple Choice)

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Question 33

Refer to the following: The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. units of units of Labor Output 2 10 4 26 0 46 8 60 10 72 12 80 -How much does the 12th unit of output add to the firm's total variable cost?

(Multiple Choice)

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Question 34

Refer to the following: The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. -When the firm uses 120 units of labor, how much output does it produce?

(Multiple Choice)

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Question 35

Refer to the following: Amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 1 80 100 120 Units 2 180 220 260 of 3 270 330 390 Labor 4 340 420 500 5 390 490 590 6 410 530 650 -If capital is fixed at one unit, diminishing returns begin with the

(Multiple Choice)

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Question 36

Refer to the following: The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. Average Output Variable Cost 10 \ 40 20 30 30 45 40 60 -If the firm produces 20 units of output, what is average fixed cost?

(Multiple Choice)

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Question 37

Refer to the following: The amount of total output produced from various combinations of labor and capital. nbsp; nbsp; nbsp; nbsp; nbsp; Units of Capital 1 2 3 4 Units 1 20 36 48 53 of 2 38 68 88 94 Iabor 3 53 94 122 133 4 63 112 148 164 5 68 120 164 184 -If the amount of labor used increases from three to four units, the marginal product of the second unit of capital

(Multiple Choice)

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Question 38

Refer to the following: Output Total Cost 0 \ 300 50 800 100 1050 150 1650 200 2400 -The additional cost of producing the 60th unit of output is:

(Multiple Choice)

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Question 39

Refer to the following: Number of Workers Total Product Average Product Marginal Product 5 - 28 -30 10 - - 30 15 420 - - 20 - - 22 -The maximum amount that can be produced using 20 workers is

(Multiple Choice)

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Question 40

Refer to the following: The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. units of units of Labor Output 2 10 4 26 0 46 8 60 10 72 12 80 -If the firm produces 60 units of output, what is average variable cost?

Refer to the following: The wage rate is $600 and total fixed cost is $15,000. -When there are 40 workers, what is average variable cost?

Refer to the following: The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. -When the firm uses 40 units of labor, what is AVC at this level of output?

Refer to the following: Output Total Cost 0 \ 300 50 800 100 1050 150 1650 200 2400 -What is total variable cost when 100 units of output are produced?

Average fixed cost

A firm's cost of production is affected by changes in

Refer to the following: Units of Labor Totel Praduet Average Product Narginal Produet 1 - - 100 2 - 125 - 3 300 - - 4 - - 20 5 290 - - -In the table above, how much does the third unit of labor ADD to total output?

A fixed cost is

Refer to the following: The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. Average Output Variable Cost 10 \ 40 20 30 30 45 40 60 -If the firm produces 40 units of output, what is total variable cost?

A firm is using a single variable input, labor, with a given amount of a fixed input, capital. If the level of capital is decreased,

Refer to the following: Total Total Average Average Average Total Fixed Variable Fixed Variable Total Marginal Output Cost Cost Cost Cost Cost Cost Cost 100 560 - 60 - - - - 200 - - - - - - 4.00 300 - - - - 4.00- - - 400 - - - - - 7.00 - -What is the marginal cost of the 250th unit of output?

Refer to the following: The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. units of units of Labor Output 2 10 4 26 0 46 8 60 10 72 12 80 -How much does the 12th unit of output add to the firm's total variable cost?

Refer to the following: The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. -When the firm uses 120 units of labor, how much output does it produce?

Refer to the following: Amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 1 80 100 120 Units 2 180 220 260 of 3 270 330 390 Labor 4 340 420 500 5 390 490 590 6 410 530 650 -If capital is fixed at one unit, diminishing returns begin with the

Refer to the following: The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. Average Output Variable Cost 10 \ 40 20 30 30 45 40 60 -If the firm produces 20 units of output, what is average fixed cost?

Refer to the following: Output Total Cost 0 \ 300 50 800 100 1050 150 1650 200 2400 -The additional cost of producing the 60th unit of output is:

Refer to the following: Number of Workers Total Product Average Product Marginal Product 5 - 28 -30 10 - - 30 15 420 - - 20 - - 22 -The maximum amount that can be produced using 20 workers is

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