Exam 11: Output and Costs

-In the above figure, the long-run average cost curve exhibits diseconomies of scale

The average variable cost curve shifts downward if

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average total cost of producing 4 baseball hats per hour is

-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. Suppose Silvio's uses Plant 2. The firm's average total cost is minimized when ________ pizzas per week are produced.

-The above table gives some of the costs of the Delicious Pie Company. What is the average variable cost of producing 300 pies?

If diseconomies of scale are present and the firm ________ all its inputs, its output ________.

-In the above figure, as output increases, the distance between curves B and C decreases because

When a firm is experiencing economies of scale

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The total variable cost of producing 18 baseball hats per hour is

-Jones Production started business with a small scale plant. Fortunately for Smith, the owner of Jones Production, the business grew rapidly. It doubled its plant scale and its labor force every year for the next six years. The table above gives the total costs and the associated total products for each year. a) Complete the table by finding the average cost for each scale. b) Over what range of total product (output) did Jones Production experience economies of scale, constant returns to scale, and diseconomies of scale?

-The above (incomplete) table provides information about the relationships between labor and various product measures. The average product of the fourth unit of labor

-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. With Plant 2, Silvio's average product per worker is highest if ________ workers per week are employed.

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The total cost of producing 30 baseball hats per hour is

Total cost is equal to the

Which of the following would be classified as a fixed cost for the local supermarket?

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

What is the law of diminishing returns? Why is this proposition called a "law"?

Jefferson's Cleaners -Using the data in the above table, which worker hired at Jefferson's Cleaners is the first to show diminishing marginal returns?

If a firm's marginal product of labor is greater than its average product of labor, then an increase in the quantity of labor it employs definitely

By using more labor to produce more output, a firm can always reduce its