Exam 22: The Firm: Cost and Output Determination

-In the above table, what is the average variable cost to produce 3 units of output?

-Refer to the above table. At what quantity of labor does it become obvious that the law of diminishing marginal product has set in?

Changes in production functions are associated with changes in

Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?

The production function

In a graph showing the short-run cost curves, the one curve which declines continuously as we expand output is called

-In the above table, when output is 8 units, average variable costs are

A decrease in the long-run average costs resulting from increasing output is referred to as

-Refer to the above figure. Curve (4) is the

-In the above table, the average physical product of the 6th worker is

The planning curve is the

As a firm increases the level of output that it produces, short-run average fixed cost

-Refer to the above figure. The curve represents a

-In the above figure, at an output level of Q₁, total variable cost is

The law of diminishing marginal product shows the relationship

-Refer to the above table. What does the marginal product equal when the quantity of labor goes from 3 to 4?

Which of the following would be an example of a fixed cost to a firm?

-Refer to the above table. What does total product equal when 3 units of labor are used?

If the marginal product curve is intersecting the average product curve, we know that

The shape of the short-run average total cost curve is a result of