Exam 11: Output and Costs

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?

Pat's Catering finds that when it caters 20 meals a week, its total cost is $6,000. If Pat has total variable cost of $5,000, what is Pat's total fixed cost?

The law of diminishing returns makes it clear that as more a variable input is employed, in the ________ the marginal product of the variable input eventually will ________.

Total Product, Marginal Product, Average Product -In the above table, the marginal product of the third worker is

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

-In the figure above, curve B is the ________ curve.

-The above (incomplete) table provides information about the relationships between output and various cost measures. The marginal cost per unit when increasing output from 14 to 17 units is

Total variable cost

-Some of the cost curves for Ike's Ice Cream Kitchen are given in the above figure. At which of the following levels of output does the marginal product of labor equal the average product of labor?

An example of a variable factor of production in the short run is

A firm's total fixed cost (TFC) is a cost

-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 1 and hires 2 workers. What is the firm's average variable cost?

Which of the following is FALSE?

The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve, or intersecting the average total cost curve?

Cost schedule -In the above table, the total cost of producing 9 units of output is

If average variable cost is decreasing as output increases, then marginal cost is definitely

-In the above figure, which of the following statements is FALSE?

When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of many of its employees. The company cannot, however, increase electric power production by building additional generating capacity. This means that the company is in the

-The above table gives some of the costs of the Delicious Pie Company. The marginal cost of increasing pie output from 200 to 300 pies equals ________ per pie.

A firm's total cost in the short run is the sum of its fixed cost plus its variable cost plus its marginal cost.