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

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 11.3.2 -Refer to Figure 11.3.2, which illustrates the short-run average and marginal cost curves.The average variable cost curve is curve

When Coffee 'n' Cream in Victoria, British Columbia hires two students, 64 customers can be served in one hour.Suppose the manager of the restaurant observes that after hiring the third student, 80 customers are being served in one hour.The marginal product of the third student is ________ customers per hour.

A production function is the relationship between the maximum output attainable and the

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

Suppose a candy manufacturer can triple its production of fudge by doubling its production facility for making fudge.This indicates the presence of

Plant refers to those factors of production

Table 11.2.1 -Refer to Table 11.2.1 which gives Tania's total product schedule.The marginal product when the firm increases the number of workers from 3 to 4 per day is

In the long run, a firm has no factors of production that are

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 11.3.1 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's total product curve describes

Which of the following statements by a restaurant owner refers to the law of diminishing marginal returns?

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

Which one of the following statements is correct?

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 law of diminishing marginal returns refers to the tendency for the ________ to eventually decrease as more labour is employed, everything else remaining the same.

Which type of cost does not change as the quantity of output produced changes?