Exam 22: The Firm: Cost and Output Determination

Suppose that one worker can produce 15 cookies, two workers can produce 35 cookies together, and three workers can produce 65 cookies together. What is the marginal product of the 3rd worker?

The addition to total costs associated with the production of one more unit of output is referred to as

A firm has the following production relationship between labor and output, for a fixed capital stock. -According to the above table, what is the marginal product of the 5th unit of labor?

Use the information from the below table to answer following question(s). -In the above table, the average product for 5 units of labor is

The locus of points representing the minimum unit cost of producing any given rate of output is the

-Refer to the above figure. Average variable costs are represented by curve

-Refer to the above figure. Economies of scale exist

When the marginal physical product is rising,

-Refer to the above table. What are total variable costs at an output of 3 units?

What are the relationships between the marginal cost curve and the average cost curves? Explain in words.

Which of the following would be a fixed input for an amusement park?

The minimum efficient scale in the figure below shows that

The main source of diseconomies of scale is

An increase in long-run average costs resulting from decreases in output is

-Use the above figure. The ATC at output 10 is

Average variable costs equal

If, in the short run, the level of output is zero, which of the following statement is true?

-In the above table, the average product of the fifth worker is

Use the information from the below table to answer following question(s). -In the above table, the marginal product of the sixth worker is

What is a production function?