Exam 11: Output and Costs

The short run is a period of time in which

The long run

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average variable cost of producing 10 baseball hats per hour is

Increasing marginal returns means that as the firm expands its output, its

-Based on the production data for Pat's Pizza Parlor in the above table, the average product of labor when 4 workers are hired is ________ pizzas.

Marginal cost refers to the increase in cost attributable to hiring one more unit of labor, capital, or some other input.

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average total cost of producing 4 baseball hats per hour is

Cost schedule -The above table shows a firm's

Decent Donuts -Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the AVC curve

When long-run average costs decrease as output increases, there are

-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. What is the marginal cost of producing the 200th pizza?

If the average total cost of producing 20 sweaters an hour falls when the firm doubles all its inputs, then the

-The average total cost curves for plants A, B, C, and D are shown in the above figure. It is possible that the long-run average cost curve runs through points

The output at which average product is a maximum is the same output at which ________ is a minimum.

What are diseconomies of scale and why might they occur?

When the average product of labor is greater than the marginal product of labor

"In the short run, even when output is zero, the firm still has some variable costs it must pay." Is the statement correct or incorrect? Briefly explain your answer.

How do the marginal and average products of labor affect a firm's marginal and average variable costs in the short run?

Electric utility companies have built larger and larger electric generating stations and, as a result, the long-run average cost of producing each kilowatt hour decreased. This is an example of

-The above table shows the short-run total product schedule for the campus book store. When the book store hires the 3rd employee