Exam 7: Cost and Industry Structure

Economies of scale may arise from all but one of the following. Which one is it?

Marcella operates a small, but very successful art gallery. All but one of the following can be classified as a variable cost arising from the physical inputs Marcella requires to operate her business. Which is it?

In order to reduce the harmful affects of recession and carbon emissions, the government provided tax incentives for manufacturing firm's to ___________________ that provide alternative, more efficient methods of combining inputs to produce output.

Mindy's company manufactures rubber balls used by elementary schools for playground activities. The table below sets out her firm's production cost information. Some values are missing. Which of the following statements is correct?

________________________ arises where many firms are competing in a market to sell similar but differentiated products.

Which of the following falls outside of the classification of business expenses that fall into the category of fixed costs?

I'MaPizzaCo. produces and sells specialty pizzas. Last year, it produced 8,000 mushroom, sausage and spinach pizzas and sold each one for $8. To produce these 8,000 specialty pizzas, the company incurred variable costs of $24,000 and a total cost of $40,000. I'MaPizzaCo's average fixed cost to produce 8,000 specialty pizzas was

Which of the following falls outside of the classification of business expenditures that fall into the category of variable costs?

The ______________ of all firms can be broken down into some common underlying patterns.

-Refer to the diagram above. Based on the information illustrated in the graph, which of the following is correct?

_____________________ help to explain why every economy, as it develops, has an increasing proportion of its population living in urban areas.

If I'maJuiceCo. establishes a bottling plant in Delaware, it will most likely

In economics, a firm that faces no competitors is referred to as _________________.

The table below sets out cost information for the production of volley balls. Some values are missing. Which of the following statements is correct?

A firm's ___________ consist of expenditures that must be made before production starts that typically, over the short run, _______________ regardless of the level of production.

I'MABigCorp. produces and sells kitchen wares. Last year, it produced 7,000 can openers and sold each one for $6. To produce the 7,000 can openers, the company incurred variable costs of $28,000 and a total cost of $45,000. I'MABIGCorp.'s average fixed cost to produce the 7,000 can openers was

The term _____________ is used to describe the additional cost of producing one more unit.

The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.

Briefly discuss average variable costs, including how they are calculated, how they typically on a graph, and how they are related to determining profitability.

If a solar panel manufacturer wants to look at its total costs of production in the short run, which of the following would provide a useful starting point?