Exam 7: Producers in the Short Run

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3.The average total cost when producing 90 units of output is approximately

What information is provided by average,marginal,and total product curves?

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4 -Refer to Table 7-4.The total fixed cost of producing 305 units of output is

The period of time over which the firm can vary its technology of production is the

The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars. TABLE 7-6 -Refer to Table 7-6.The firm's marginal product of its variable factor is maximized when it produces ________ units of output.

Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its short-run costs are as follows: ATC = $0.37 per unit AVC = $0.32 per unit AFC = $0.05 per unit MC = $0.43 per unit Given these short-run costs,as the firm increases its output,which of the following statements is true?

The table below provides the total revenues and costs for a small landscaping company in a recent year. TABLE 7-2 -Refer to Table 7-2.The explicit costs for this firm are

Economists use the notation Q = f(L,K)to describe

The relationship between factors of production used in the production process and the resulting output is called a(n)

Which of the following is the best example of an input to production that is an intermediate product?

A firm can raise financial capital without incurring debt by

The table below provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs.All costs are in dollars. TABLE 7-5 -Refer to Table 7-5.What is the average total cost of producing 25 chairs?

If a firm uses factor inputs that are personally owned by the firm's owner,then economists refer to the opportunity cost of these inputs as

A firm's capacity is defined as the level of output where

The table below provides information on output per month and short-run costs for a firm producing outdoor wooden lounge chairs.All costs are in dollars. TABLE 7-5 -Refer to Table 7-5.What is the average variable cost of producing 10 chairs?

In the short run,the firm's product curves show

Consider a firm in the short run.If AP = MP and both are positive,then total product

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. TABLE 7-3 -Refer to Table 7-3.The average variable cost when this firm is producing 10 units of output is

The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars. TABLE 7-6 -Refer to Table 7-6.If the firm produces 130 pairs of shoes,and the fixed cost is $550,then the firm's total cost is

Suppose a firm producing digital cameras is operating such that marginal costs are higher than average costs.If the firm produces one more camera,average costs will