Exam 11: Output and Costs

Decent Donuts -Use the data in the table above and suppose that labor is the only variable factor of production. If each worker is paid $42.00 per day, what is the average variable cost to Decent Donuts of producing 122 dozen donuts per day?

-The table above shows some data that describe Tom's T-Shirts' total product when Tom has 1 sewing machine. An increase in the number of workers from 1 to 2 a day increases average product of labor from ________ T shirts per worker and marginal product of labor is ________ T shirts per worker.

The steeper the slope of the total product curve, the

Which curve intersects the AVC curve at its minimum point?

Which of the following statements is TRUE?

The change in total cost from producing another unit of output equals the

Total fixed cost

Which of the following statements is TRUE?

Which of the following shifts the AVC curve upward at Barney's Bagel Bakery?

When economies of scale are present, the LRAC curve touches each short-run ATC curve

The marginal product of labor is defined as the increase in output attributable to the last worker hired divided by the total number of workers employed.

Cost schedule -In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4 units is

Average product of labor is equal to

How do we calculate average fixed cost and why does average fixed cost fall as output increases?

-The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the

-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. What is Silvio's long-run average cost if the output is 100 pizzas per week?

A common source of diseconomies of scale is the

The marginal product of labor is the change in total product from a one-unit increase in

Angel Rodriguez pulls up in his 24-foot panel truck in front of Sezz Medi Brick Oven Pizza in Upper Manhattan. Even though it's the middle of the summer, he's delivering- firewood. He says even though fuel costs have doubled in the past year, it's still worth the premium he gets delivering ash and cherry to the captive and growing market in NYC. Which of the following statements is TRUE about short run costs for Angel?

Diminishing marginal returns means that the firm definitely is experiencing