Exam 13: Producer Choices and Constraints

-In the above figure, the total variable cost curve is curve

-The above table shows the short- run total product schedule for the campus bookshop. What is the marginal product (MP) of going from 5 to 6 employees at the bookshop?

As output increases, total cost _______ , total fixed cost _______, and total variable cost _______.

-The above figure shows the costs at Barney's Bagel Bakery. At which of the following amounts of output is the AFC at its lowest?

By using more labour to produce more output, a firm can always reduce its

After constructing a new factory, the cost of building the factory is a

The law of diminishing marginal returns occurs because

-The table above gives a firm's total product schedule. Suppose labour is the only variable factor of production. The price of labour is $500 per worker per week and total fixed costs are $600 per week. What is the marginal cost when production increases from 85 to 95 units per week?

Jefferson's Cleaners -Using the above table, when Jefferson's Cleaners hires three workers,

If a firm's marginal product of labour is less than its average product of labour, then an increase in the quantity of labour it employs definitely will

Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost?

If the wages a firm pays it workers increase then

-The table above shows some data that describes Tom's T- Shirts' total product when Tom has one sewing machine. When 4 workers are employed, _______.

-The table above shows some data that describe Tom's T- Shirts' total product when Tom has one sewing machine. Diminishing marginal returns begin when the _______ is employed.

-The above figure shows the costs at Barney's Bagel Bakery. After 3,000 bagels are produced each day, the ATC curve starts to slope upward because the

Most total product curves have

A company could produce 100 units of a good for $320 or produce 101 units of the same good for $324. The $4 difference in costs is

-In the above figure, the long- run average cost curve exhibits economies of scale

In economics, the short run is the time frame in which the quantities of _______ and the long run is the period of time in which _______.

When long- run average cost remains constant as output increases there are constant