Table 7.5 \[\begin{array} { | c | c | c | } \hline \text { Labor } & \text { Total Froduct } & \text { Marginal Product } \\ \hline 1 & 2 & 2 \\ \hline 2 & 6 & \mathrm {~A} \\ \hline 3 & \mathrm {~B} & 6 \\ \hline 4 & 16 & 4 \\ \hline 5 & 18 & \mathrm { C } \\ \hline 6 & \mathrm { D } & 0 \\ \hline \end{array}\] -Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.Marginal returns increase with the hiring of up to _____ workers.

A) six B) two C) five D) four E) three A) six B) two C) five D) four E) three

Table 7.6 \[\begin{array} { | c | c | c | c | } \hline \text { Cakes } & \text { Variable Costs } & \text { Fixed Costs } & \text { Total Costs } \\ \hline 0 & & \$ 10 & \\ \hline 1 & \$ 2 & & \\ \hline 2 & \$ 3 & & \\ \hline 3 & & & \$ 16 \\ \hline 4 & \$ 9 & & \\ \hline 5 & \$ 10 & & \$ 20 \\ \hline \end{array}\] -Refer to Table 7.6,which shows the costs of birthday cakes at a bakery.What is the total cost of 2 cakes?

A) $7 B) $10 C) $17 D) $35,000 E) $13 A) $7 B) $10 C) $17 D) $35,000 E) $13

Table 7.3 \[\begin{array} { c c } \begin{array} { c } \text { Number } \\ \text { of Workers } \end{array} & \begin{array} { c } \text { Total } \\ \text { Output } \end{array} \\ \hline 0 & 0 \\ 1 & 10 \\ 2 & 40 \\ 3 & 100 \\ 4 & 140 \\ 5 & 160 \\ 6 & 170 \\ 7 & 150 \end{array}\] -Refer to Table 7.3,which shows the number of workers and total output produced in a firm.The total product of four workers is _____

A) 0. B) 10. C) 20. D) 140/4. E) 140. A) 0. B) 10. C) 20. D) 140/4. E) 140.

Table 7.4 \[\begin{array} { c c c } \begin{array} { c } \text { Units of } \\ \text { Labor } \end{array} & \begin{array} { c } \text { Total } \\ \text { Product } \end{array} & \begin{array} { c } \text { Marginal } \\ \text { Product } \end{array} \\ \hline 0 & 0 & - \\ 1 & 6 & 6 \\ 2 & 14 & 8 \\ 3 & 24 & 10 \\ 4 & 36 & 12 \\ 5 & 42 & 6 \\ 6 & 46 & 4 \end{array}\] -Refer to Table 7.4,which shows labor,total product,and marginal product for a firm.Marginal returns begin to diminish with the hiring of the _____ worker.

A) second B) third C) fourth D) fifth E) sixth A) second B) third C) fourth D) fifth E) sixth

Exam 7: Production and Cost in the Firm

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.Downloads generated $130,000 in revenue during the first year.What is his economic profit?

(Multiple Choice)

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Question 181

Table 7.5 Labor Total Froduct Marginal Product 1 2 2 2 6 3 6 4 16 4 5 18 6 0 -Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.Marginal returns increase with the hiring of up to _____ workers.

(Multiple Choice)

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Question 182

If variable cost at each output level doubles,then _____

(Multiple Choice)

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Question 183

John moved his office from a building he was renting downtown to the carriage house he owns behind his house.How will his profit change?

(Multiple Choice)

4.7/5

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Question 184

When diminishing marginal returns set in,total product _____

(Multiple Choice)

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Question 185

Long-run average costs are the same as long-run total costs.

(True/False)

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(30)

Question 186

Table 7.6 Cakes Variable Costs Fixed Costs Total Costs 0 \ 10 1 \ 2 2 \ 3 3 \ 16 4 \ 9 5 \ 10 \ 20 -Refer to Table 7.6,which shows the costs of birthday cakes at a bakery.What is the total cost of 2 cakes?

(Multiple Choice)

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Question 187

Exhibit 7.2 -Refer to Exhibit 7.2,which shows different cost curves.Which of the curves represents total cost?

(Multiple Choice)

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Question 188

All other things constant,higher implicit costs result in lower accounting profit.

(True/False)

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(38)

Question 189

Table 7.3 Number of Workers Total Output 0 0 1 10 2 40 3 100 4 140 5 160 6 170 7 150 -Refer to Table 7.3,which shows the number of workers and total output produced in a firm.The total product of four workers is _____

(Multiple Choice)

4.8/5

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Question 190

Which of the following is true of the relationship between average and marginal costs?

(Multiple Choice)

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Question 191

A variable cost is one that changes _____

(Multiple Choice)

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Question 192

A firm produces 5000 waterproof cellphone cases,which they sell for $30 each.They have $35,000 in fixed costs and $85,000 in total costs every year.What is the average variable cost?

(Multiple Choice)

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(41)

Question 193

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.If downloads generate $45,000 in revenue during the first year,then his business _____

(Multiple Choice)

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Question 194

The short run is a period of time _____

(Multiple Choice)

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Question 195

Exhibit 7.3 -Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve,B is the average variable cost curve,and C is the average total cost curve.The vertical distance between lines B and C at any level of output represents _____

(Multiple Choice)

4.8/5

(31)

Question 196

Table 7.4 Units of Labor Total Product Marginal Product 0 0 - 1 6 6 2 14 8 3 24 10 4 36 12 5 42 6 6 46 4 -Refer to Table 7.4,which shows labor,total product,and marginal product for a firm.Marginal returns begin to diminish with the hiring of the _____ worker.

(Multiple Choice)

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Question 197

The long-run average cost curve is tangent to the minimum point of every short-run average total cost curve.

(True/False)

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Question 198

Exhibit 7.2 -Refer to Exhibit 7.2,which shows different cost curves.Which of the curves represents fixed cost?

(Multiple Choice)

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Question 199

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.Downloads generated $130,000 in revenue during the first year.What is his economic profit?

Table 7.5 Labor Total Froduct Marginal Product 1 2 2 2 6 3 6 4 16 4 5 18 6 0 -Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.Marginal returns increase with the hiring of up to _____ workers.

If variable cost at each output level doubles,then _____

John moved his office from a building he was renting downtown to the carriage house he owns behind his house.How will his profit change?

When diminishing marginal returns set in,total product _____

Long-run average costs are the same as long-run total costs.

Table 7.6 Cakes Variable Costs Fixed Costs Total Costs 0 \ 10 1 \ 2 2 \ 3 3 \ 16 4 \ 9 5 \ 10 \ 20 -Refer to Table 7.6,which shows the costs of birthday cakes at a bakery.What is the total cost of 2 cakes?

Exhibit 7.2 -Refer to Exhibit 7.2,which shows different cost curves.Which of the curves represents total cost?

All other things constant,higher implicit costs result in lower accounting profit.

Table 7.3 Number of Workers Total Output 0 0 1 10 2 40 3 100 4 140 5 160 6 170 7 150 -Refer to Table 7.3,which shows the number of workers and total output produced in a firm.The total product of four workers is _____

Which of the following is true of the relationship between average and marginal costs?

A variable cost is one that changes _____

A firm produces 5000 waterproof cellphone cases,which they sell for $30 each.They have $35,000 in fixed costs and $85,000 in total costs every year.What is the average variable cost?

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.If downloads generate $45,000 in revenue during the first year,then his business _____

The short run is a period of time _____

Exhibit 7.3 -Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve,B is the average variable cost curve,and C is the average total cost curve.The vertical distance between lines B and C at any level of output represents _____

Table 7.4 Units of Labor Total Product Marginal Product 0 0 - 1 6 6 2 14 8 3 24 10 4 36 12 5 42 6 6 46 4 -Refer to Table 7.4,which shows labor,total product,and marginal product for a firm.Marginal returns begin to diminish with the hiring of the _____ worker.

The long-run average cost curve is tangent to the minimum point of every short-run average total cost curve.

Exhibit 7.2 -Refer to Exhibit 7.2,which shows different cost curves.Which of the curves represents fixed cost?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, interest, entrepreneurship, and Corporate Finance

Transaction Costs, asymmetric Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Poverty and Redistribution

International Trade

International Finance

Economic Development

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Exam 7: Production and Cost in the Firm

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.Downloads generated $130,000 in revenue during the first year.What is his economic profit?

Table 7.5 ​ Labor Total Froduct Marginal Product 1 2 2 2 6 3 6 4 16 4 5 18 6 0 -Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.Marginal returns increase with the hiring of up to _____ workers.

If variable cost at each output level doubles,then _____

John moved his office from a building he was renting downtown to the carriage house he owns behind his house.How will his profit change?

When diminishing marginal returns set in,total product _____

Long-run average costs are the same as long-run total costs.

Table 7.6 Cakes Variable Costs Fixed Costs Total Costs 0 \ 10 1 \ 2 2 \ 3 3 \ 16 4 \ 9 5 \ 10 \ 20 -Refer to Table 7.6,which shows the costs of birthday cakes at a bakery.What is the total cost of 2 cakes?

Exhibit 7.2 -Refer to Exhibit 7.2,which shows different cost curves.Which of the curves represents total cost?

All other things constant,higher implicit costs result in lower accounting profit.

Table 7.3 Number of Workers Total Output 0 0 1 10 2 40 3 100 4 140 5 160 6 170 7 150 -Refer to Table 7.3,which shows the number of workers and total output produced in a firm.The total product of four workers is _____

Which of the following is true of the relationship between average and marginal costs?

A variable cost is one that changes _____

A firm produces 5000 waterproof cellphone cases,which they sell for $30 each.They have $35,000 in fixed costs and $85,000 in total costs every year.What is the average variable cost?

Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year.He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year.If downloads generate $45,000 in revenue during the first year,then his business _____

The short run is a period of time _____

Exhibit 7.3 -Refer to Exhibit 7.3,which shows the U-shaped cost curves for a producer.A is the marginal cost curve,B is the average variable cost curve,and C is the average total cost curve.The vertical distance between lines B and C at any level of output represents _____

Table 7.4 Units of Labor Total Product Marginal Product 0 0 - 1 6 6 2 14 8 3 24 10 4 36 12 5 42 6 6 46 4 -Refer to Table 7.4,which shows labor,total product,and marginal product for a firm.Marginal returns begin to diminish with the hiring of the _____ worker.

The long-run average cost curve is tangent to the minimum point of every short-run average total cost curve.

Exhibit 7.2 -Refer to Exhibit 7.2,which shows different cost curves.Which of the curves represents fixed cost?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, interest, entrepreneurship, and Corporate Finance

Transaction Costs, asymmetric Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Poverty and Redistribution

International Trade

International Finance

Economic Development

Filters

Table 7.5 Labor Total Froduct Marginal Product 1 2 2 2 6 3 6 4 16 4 5 18 6 0 -Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.Marginal returns increase with the hiring of up to _____ workers.