Exam 22: The Firm: Cost and Output Determination

-In the above table, the law of diminishing marginal product sets in after the ________ worker.

-In the above figure, the long-run cost curve between points E and F illustrates

If marginal product is zero, we know that

When total product is decreasing, marginal product is

When long-run average costs rise as output increases, the firm is experiencing

For a hotdog vendor, the hotdog stand represents his

-Refer to the above figure. Minimum efficient scale is at output rate

If we add successive laborers to work a given amount of land on a wheat farm, eventually

-Refer to the above table. When the quantity of labor equals 4, what does the average product equal?

Marginal physical product is

-Use the above figure. At an output equal to "Q" the total variable cost for the firm will be the area

Which of the following is a long-run adjustment?

When marginal costs are rising,

What is the difference between average variable costs and average total costs?

In the short run, average total cost is

The long run is defined as the time period in which

Marginal costs will begin to rise at the point where

Production functions indicate the relationship between

Which of the following is TRUE about the long run?

The production function does not provide information about