Exam 11: Output and Costs

When the total product curve is drawn in a figure that measures employment along the horizontal axis, it is a graph that shows the

The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points.

-The above table shows the short-run total product schedule for the campus book store. Which employee has the highest marginal product (MP)?

-The table above gives the cost of producing T-shirts. When 5 T-shirts are produced, the average fixed cost is ________ and the average variable cost is ________.

If Dell Computer Company could produce more computers at lower long-run average cost by increasing the quantity of all the inputs it uses, Dell definitely would experience

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

Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is TRUE?

The average total cost curve eventually slopes upwards because of the

-The above table gives some of the costs of the Delicious Pie Company. The marginal cost of increasing pie output from 200 to 300 pies equals ________ per pie.

What does the average product of labor equal?

-In the figure above, ________ is a technologically efficient point.

In the short run

Cost schedule -In the above table, the total fixed cost is

-The above table shows the total product schedule for Hair Today, a hair styling salon. a) What is the first worker's marginal product? The second worker? The third worker? The fourth worker? The fifth worker? b) Over what range of workers is there increasing marginal returns? Over what range is there decreasing marginal returns?

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?

-In the above figure, the most efficient way to produce 10 units is to hire

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.

The long run is a time frame in which

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. How does the doubling of fuel costs affect Angel's short run costs?

Average product equals the