Exam 13: Producer Choices and Constraints

Which of the following costs are part of a firm's opportunity costs? I. Costs of resources bought in markets. II. Costs of resources the firm owns. III. Costs of resources supplied by the owner.

-The above table shows the short- run total product schedule for the campus bookshop. When the bookshop hires the third employee,

-The above table shows the total product schedule for the campus bookshop. If employees are paid $6 per hour and there are no other variable costs, then what is the marginal cost (MC) per book of increasing book sales from 83 to 87 books per hour?

Greg, a landscaper, is planning on opening his own landscaping company. He currently earns $40,000 per year working for his uncle but he will need to quit that job. He plans to use $10,000 in savings to pay for the equipment he needs, although even after use he could sell the equipment for what he paid, $10,000. The current interest rate on savings is 5 per cent. What is the total opportunity cost incurred by Greg in running his own business?

-The average total cost curves for plants A, B, C and D are shown in the above figure. The plant size that is the most economically efficient

The implicit rental rate for capital includes the

-Using the data in the above table, what is the average product of three employees?

The law of diminishing marginal returns states that as

-In the above figure, the marginal cost curve is curve

The average return for supplying entrepreneurial ability is the entrepreneur's

The implicit rental rate for capital is

-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). What is Dustin's long- run average cost if the output is 3,000 copies per day?

-The table above shows the short- run product schedule for Virginia's T- Shirts. The worker for whom the law of diminishing marginal returns initially occurs is the _______ worker.

Economic depreciation is the

Which of the following are two components of the opportunity cost of using capital already owned by the firm?

Electric utility companies have built larger and larger electricity generating stations and, as a result, the long- run average cost of producing each kilowatt hour has decreased. This is an example of

-The table above shows the short- run product schedule for Virginia's T- Shirts. What is the average product associated with hiring the fourth worker?

-In the above table, between which two levels of output does one first observe the law of diminishing marginal returns?

Points below a firm's total product curve are

The total output produced with any quantity of labour is equal to the sum of the