Exam 11: Output and Costs

If wages a firm pays it workers increase, then

In the long run, total fixed cost equals zero.

The law of diminishing returns implies that, with the quantity of capital fixed, as the use of labor rises

-The table above gives the cost of producing T-shirts. The total fixed cost is ________ and the marginal cost of increasing production from 5 to 6 T shirts is ________.

In the long run, total variable cost is zero.

A firm's minimum efficient scale is the largest quantity of output at which long-run average cost reaches its highest level.

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

-In the above table, what is marginal product of labor for the 2nd worker?

-Using the data in the above table, if the firm employs 5 workers, total product (measured in units per day) and average product and marginal product of the fifth worker (measured in units per worker) are

-In the above table, what is marginal product of labor for the 5th worker?

-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. If Silvio's uses Plant 1, the marginal product of the 3rd worker is ________ pizzas per week.

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 would an increase in Angel's salary affect short run costs?

-The above figure shows the costs at Barney's Bagel Bakery. For which of the following levels of output does the average product of labor exceed the marginal product of labor?

What does a firm's short-run total product curve show and what is its significance?

Total Product, Marginal Product, Average Product -In the above table, the marginal product is greatest when the

Which of the following is CORRECT?

If marginal cost is less than average variable cost and output increases, average total cost ________ and average variable cost ________.

Cost schedule -In the above table, the total variable cost of producing 16 units of output is

Total variable cost is the sum of all

The marginal product of labor is the increase in total product from a