Exam 11: Output and Costs

Use the figure below to answer the following questions. Figure 11.3.2 -Refer to Figure 11.3.2, which illustrates the short-run average and marginal cost curves. The marginal cost curve is curve

Use the figure below to answer the following questions. Figure 11.4.4 -Refer to Figure 11.4.4, which illustrates the long-run average total cost curve. Given an increase in output from Q₁ to Q₂,

Suppose a 1-unit increase in labour, from 2 to 3 workers, increases output from 10 to 15 tea cups. The marginal product from the increase in the quantity of labour is

Use the figure below to answer the following questions. Figure 11.2.1 -Refer to Figure 11.2.1 which illustrates Tania's total product curve. Which one of the following statements is false?

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 marginal product when the number of workers increases from 2 to 3 is

The vertical distance between the TC and TVC curves

Use the figure below to answer the following questions. Figure 11.2.1 -Refer to Figure 11.2.1 which illustrates Tania's total product curve. Marginal product of labour reaches its maximum when the number of workers increases from

Diseconomies of scale refer to the range of output over which

The average product of labour is

Marginal cost

When the marginal product of labour is less than the average product of labour,

Use the figure below to answer the following question. Figure 11.2.2 -Refer to Figure 11.2.2 which shows Tania's average product curve and marginal product curve. The point of maximum average product is point

Which of the following quotes best illustrates the idea of marginal product?

Use the table below to answer the following questions. Table 11.4.1 Swanky's output levels -Refer to Table 11.4.1, which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day. If Swanky increases the number of knitting machines from 1 to 2 and increases the number of workers employed from 1 to 2, the factory experiences

Choose the statement that is incorrect.

Consider a graph that shows the total cost curve and the total variable cost curve. As output increases, the vertical distance between these two curves

Use the table below to answer the following questions. Table 11.3.1 -Refer to Table 11.3.1, which gives Tania's total cost schedule. The average total cost of producing 16 teapots per day is

A technological advance will shift (1)TP, AP, and MP curves up. (2)TP, AP, and MP down. (3)TC, ATC, and MC curves up. (4)TC, ATC, and MC curves down.

The average product of energy equals

Use the information below to answer the following question. Fact 11.1.2 A Bakery on the Rise Some 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are worries. Avalon now employs 35 and plans to hire 15 more. Its payroll will climb by 30 percent to 40 percent. The new CEO has executed an ambitious agenda that includes the move to a larger space, which will increase the rent from $3,500 to $10,000 a month. Source: Fortune, April 14, 2008 -Refer to Fact 11.1.2. Avalon's decision to ________ is a short-run decision. Avalon's decision to ________ is a long-run decision.