Exam 11: Output and Costs

-The above table has the total product schedule for Jesse's Lawn Service. a) In the figure, label the axes and then graph the total product curve. b) Find the average product for the different amounts of employment.

Average variable cost is at a minimum at the same amount of output at which

When the marginal product of labor exceeds the average product of labor, the average product must increase when employment increases.

The marginal product of labor is the

-In the above figure, the long-run average cost curve exhibits economies of scale

The law of diminishing returns occurs because

-The table above shows the short-run product schedule for Virginia's Tee-Shirts. What is the marginal product associated with the hiring the fifth worker?

The vertical distance between a firm's total cost (TC) and its total variable cost (TVC) curves

-In the above figure, the long-run average cost curve exhibits constant returns to scale

"Diseconomies of scale" occur in

In economics, the short run is the time frame in which the quantities of ________ and the long run is the period of time in which ________.

In the short run, average fixed cost is constant as output increases.

Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's average total cost?

-The above table shows some cost data for Tracey's Tents. What is the average fixed cost when 4 tents are produced?

Decent Donuts -Based on the data in the table above, when Decent Donuts hires eight workers, the

-Based on the production data for Pat's Pizza Parlor in the above table, which of the following pair of workers have the same average product?

The short run is a time frame in which

-The above table shows the total product schedule for the campus book store. If employees are paid $12 per hour and there are no other variable costs, then what is the marginal cost (MC) per book of increasing book sales from 83 to 87 books per hour?

-Ajax Manufacturing has a fixed scale of plant with the levels of total product given in the table for different levels of labor. Complete the table by calculating the average product and marginal product.

In the short run