Exam 11: Output and Costs

-The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total variable cost of producing 60 bikes?

In the short run

-Based on the above production data table for Ken's Pizza Parlor, we know that the average product of labor curve begins to decrease after hiring worker

In the short run

What does a firm's short-run total product curve show and what is its significance?

Economies of scale occur when the percentage increase in output

-Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor?

-In the above figure, the most efficient way to produce 15 units is to hire

-The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50 bikes?

-The average total cost curves for Plant 1, ATC₀, and Plant 2, ATC₁, are shown in the figure above. The long-run average cost curve goes through points

-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). Dustin's minimum efficient scale is

-The table above shows some data that describe Tom's T-Shirts' total product when Tom's has 1 sewing machine. Diminishing marginal returns begin when the ________ is employed.

Diseconomies of scale definitely means that as the firm increases its output, its

Average product equals the

-The above table shows the short-run total product schedule for the campus book store. What is the average product (AP) of the 4th employee?

In general, increasing marginal returns occur

What is the long-run average cost curve? What are the three ranges of output and in what order do they occur? Briefly define each of the three ranges.

-The above table shows the total product schedule for the campus book store. If each employee is paid $12 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?

-The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 20 units per day?

-The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 80 units per day?