Exam 11: Output and Costs

If as output increases average product increases, then

-Based on the above figure of the costs at Barney's Bagel Bakery, at which level of output will diminishing marginal returns first occur?

-Based on the above figure of the costs at Barney's Bagel Bakery, at which of the following levels of output does the marginal product of labor equal the average product of labor?

-In the above figure, the relationship between costs indicates that the distance between curves

A firm's average variable cost is $90, its total fixed cost is $10,000, and its output is 1,000 units. Its total cost is

A firm's total product curve shows that at first it has

Cost schedule -Using the data in the above table, the average total cost of producing 16 units per day is

-Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 18 sweaters per day, what is her average total cost?

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?

Most total product curves have

Marginal cost ________ as the quantity produced is increased.

The marginal cost curve passes through the ________ points of the ________ cost curve and the ________ cost curve.

As output increases, average fixed cost

-Using the data in the above table, if the firm employs 3 workers, total product (measured in units per day) and average product and marginal product of the third worker (measured in units per worker) are

In the long run all costs are variable costs. Why?

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

Which of the following statements is TRUE for any marginal and average?

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's uses Plant 2. If Silvio hires the 4th worker, the firm will experience ________ marginal returns.

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

The short run is a time frame in which