Exam 7: Producers in the Short Run

FIGURE 7-1 -Refer to Figure 7-1.Suppose each unit of labour represents one worker for one month.What is the maximum number of workers the firm could hire so that the final worker hired still raises the average product of the other workers?

A firm that has two or more owners who share decision-making power as well as the firm's profits is called

Consider a firm's short-run cost curves.When capital is a fixed factor,a rise in the cost of labour

Jodi recently went into business producing widgets.Which of the following would be a fixed cost for her firm? 1.labour costs of $1000 per month 2.raw material costs of $5000 per month 3.a one-year lease on a building of $12 000

It is assumed in standard economic theory that a firm makes decisions in an effort to

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 product of labour when the firm hires 3 units of labour is ________.The average product of labour when the firm hires 4 units of labour is ________.

The diagram below shows some short-run cost curves for a firm. FIGURE 7-2 -Refer to Figure 7-2.Which of the following choices correctly identifies the cost curves in part (ii)of the figure?

The vertical distance between the total cost curve and the total variable cost curve is

Churches,the YMCA,the Salvation Army,and the Nature Conservancy are examples of

An example of debt financing for any form of business organization is

The point of diminishing marginal productivity is the point where

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 implicit costs for this firm are

In the short run time horizon for a firm,total fixed costs

Consider a firm in the short run.If the AP curve is rising,then the MP curve

The period of time over which the firm can vary any of its inputs for a given production technology is called 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.Suppose there are no fixed costs.The firm reaches it's capacity level of output when its output is equal to ________ units.

Undistributed profits of a firm are

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.Suppose this firm is producing 210 pairs of shoes per time period and that the variable factor of production is labour.Which of the following statements best describes this firm's production?

Consider a house-construction firm with fixed capital.The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers.If it is currently building 8.8 houses per year,which of the following is true?

Suppose a firm is producing 10 000 units of output.At this level of output,average total cost is $200 and average fixed cost is $20.It can be concluded that total variable cost is