Exam 11: Output and Costs

-In the above figure, the average variable cost curve is curve

If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________.

Explain the difference between increasing marginal returns and economies of scale.

Which of the following statements is TRUE for any marginal and average?

-The above table has the total product schedule for Jesse's Lawn Service. a) In the figure, label the axes and then graph the total product curve. b) Find the average product for the different amounts of employment.

-Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor?

-In the above figure, the average total cost curve is curve

-Some of the cost curves for Ike's Ice Cream Kitchen are given in the above figure. At which of the following levels of output does the marginal product of labor equal the average product of labor?

Marginal cost is the increase in total ________ that results from a one-unit increase in ________.

-The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. Average variable cost (AVC) is lowest when output is equal to

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?

-The above figure shows the costs at Barney's Bagel Bakery. Up to which level of output will increasing marginal returns in production be experienced at Barney's Bagel Bakery?

Diminishing marginal returns and diseconomies of scale are two different names for the same thing.

For each short-run average total cost curve, the ________ the plant, the ________ is the output at which average total cost is at a ________.

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average total cost of producing 4,500 frijoles?

-The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 60 units per day?

Cost schedule -Using the data in the above table, the average fixed cost of producing 9 units per day is

-Based on the cost data in the above table, the long-run average cost (LRAC) is lowest when output is

-Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 20 sweaters per day, what is her average fixed cost of production?

-In the figure above, curve C is the ________ curve.