Exam 11: Output and Costs

Use the figure below to answer the following questions. Figure 11.4.1 -Refer to Figure 11.4.1 which shows the total product curves for four different plant sizes as Tania varies the quantity of capital and workers. The curve that represents the plant using the largest amount of capital is

If ATC is falling, then MC must be

The total output produced with any quantity of labour is equal to the sum of the

Use the information below to answer the following questions. Fact 11.3.1 A Pepsi, A Business Decision PepsiCo has done a deal with 300 small Mexican farmers close to their two factories to buy corn at a guaranteed price. PepsiCo saves transportation costs and the use of local farms assures it access to the type of corn best suited to its products and processes. "That gives us great leverage because corn prices don't fluctuate so much, but transportation costs do," said Pedro Padierna, president of PepsiCo in Mexico. Source: The New York Times, February 21, 2011 -Refer to Fact 11.3.1. The deal with farmers to avoid fluctuations in costs benefits PepsiCo for all the following reasons except

A firm experiences ________ when its ________ as output increases.

The range over which average variable cost is decreasing is the same as the range over which

If the marginal product of the fifth worker is 34, then the total product of five workers

Use the table below to answer the following questions. Table 11.2.2 -Refer to Table 11.2.2 which gives Tania's total product schedule. The average product when the firm hires three workers is

Use the table below to answer the following questions. Table 11.3.2 -Refer to Table 11.3.2, which gives Tania's total cost schedule. The average total cost of producing 14 teapots is

The marginal cost curve slopes downward at low outputs because of ________. The marginal cost curve eventually slopes upward because of ________.

If diseconomies of scale are present,

If energy (E)is the only input used to produce output (Q), what is the formula for average product of energy?

Which one of the following statements is false?

Suppose a firm increases the quantity of labour employed from 5 to 6 workers, and as a result, the firm's total output increases from 100 units to 400 units. The marginal product of the sixth worker is

Use the information below to answer the following questions. Fact 11.1.1 January 31, 2008: Starbucks will open 75 more stores abroad than originally predicted, for a total of 975. February 25, 2008: For three hours on Tuesday, Starbucks will shut down every single one of its 7,100 stores so that baristas can receive a refresher course. June 2, 2008: Starbucks replaces baristas with vending machines. July 18, 2008: Starbucks is closing 616 stores by the end of March. -Refer to Fact 11.1.1. The decisions made on ________ are short-run decisions because they ________.

Given an upward-sloping, straight line total variable cost curve, what does the marginal cost curve look like?

The long run refers to a time period

If the total product of three workers is 214 units and the total product of four workers is 221 units, then the marginal product of the fourth worker is

The short run is a time frame in which

Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule. Marginal product of labour reaches its maximum when the number of workers increases from