Exam 11: Behind the Supply Curve: Inputs and Costs

(Table: Costs of Birthday Cakes) Annie has a bakery that specializes in birthday cakes, and her variable costs of producing cakes are shown in the table Costs of Birthday Cakes.Assume that her fixed costs are $10.What is the average fixed cost of 2 cakes?

In the short run, the average total cost curve reaches its minimum point at a smaller level of output the short-run marginal cost curve reaches its minimum.True

Consider the statement, "When the marginal cost is rising, the average total cost must also be rising." Is this statement true or false? Explain your reasoning.

Total cost divided by the quantity of output produced is:

When marginal cost is above average variable cost, average variable cost must be:

For Heidi, the marginal cost of producing one additional photograph equals the change in ________ divided by the change in the _.

Buford Bus Manufacturing installs a new assembly line.As a result, the output produced per worker increases.The marginal cost of output at Buford:

The marginal product of labor is the change in:

If a firm builds a larger plant and its long-run average total cost does not change, the firm has constant returns to scale.False

A firm that has diminishing returns in the management's ability to use and disseminate information as it increases production in the long run is an example of:

Figure: The Total Product (Figure: The Total Product) Look at the figure The Total Product.If after hiring L2 labor, the firm hires more labor, the total product will ________ because the marginal product of labor is _.

Average variable cost is:

(Table: Costs for Birthday Cakes) Annie has a bakery that specializes in birthday cakes, and her variable costs of producing cakes are shown in the table Costs of Birthday Cakes.Assume that her fixed costs are $10.What is the marginal cost of the fifth cake?

You have rented a one-room apartment and it is time to pay the bills.You pay the rent, the basic cable bill, the electricity bill, and your grocery bill.Which of these are good examples of fixed costs and which are variable costs? Explain your reasoning.

(Table: Cost Data) Look at the table Cost Data, which shows data for a designer purse factory.The average fixed cost of producing 2 purses is:

(Table: Labor and Output) Look at the table Labor and Output.The marginal product of the fourth worker is:

(Table: Cost Data) Look at the table Cost Data, which shows data for a designer purse factory.The marginal cost of producing the fourth purse is:

(Table: Costs of Producing Bagels) Look at the table Cost of Producing Bagels.Marginal cost reaches its minimum value for the bagel.

(Table: Tonya's Production Function for Apples) Look at the table Tonya's Production Function for Apples.The marginal product of the fourth worker is apples.

The average total cost of producing cell phones in a factory is $20 at the current output level of 100 units per week.If fixed cost is $1,200 per week: