Exam 7: Technology, Production and Costs

Table 7-1 Table 7-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. -Refer to Table 7-1.Diminishing marginal returns sets in when the ________ worker is hired.

The difference between technology and technological change is that

Table 7-7 Table 7-7 shows cost data for Lotus Lanterns,a producer of whimsical night lights. -Refer to Table 7-7.What is the marginal cost per unit of production when the firm produces 100 lanterns?

Describe the relationship between marginal cost and average total cost.

Which of the following is an implicit cost of production?

The slope of an isoquant measures

Figure 7-11 Figure 7-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATC_a,ATC_b and ATC_c. -Refer to Figure 7-11.If the firm chooses to produce and sell 25 000 frames per month by operating in the short run with a scale operation represented by ATC_c

Increases in the marginal product of labour result from

The total output produced by a firm divided by the quantity of workers employed by the firm is the definition of

Bill owns 'Bill's Home of Blues' a store that specialises in selling CDs and DVDs of blues musicians of the 1960s and 1970s.Bill took out a loan from his bank to pay for his store and its initial inventory.Bill pays the bank $900 per week for his loan.The $900 bank payment

Gertrude Stork's Chocolate Shoppe normally employs 4 workers.When the Chocolate Shoppe hired a 5th worker the Shoppe's total output decreased.Therefore

When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm

What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business.

Consider a manufacturing operation that uses specialised machinery and labour to produce its output.In this case,the input that is not fixed in the short run is labour.

What is the difference between between total costs,variable costs,and fixed costs?

Table 7-6 -Refer to Table 7-6.Alicia Gregory owns a foot massage business.She leases 4 computer-controlled massage booths,for which she pays $125 per day.She cannot increase the number machines she leases without giving the manufacturer 3 months notice.She can hire as many workers as she wants at a cost of $75 per day per worker.These are the only two inputs she uses in her business.Use this information to fill in the columns in the above table.

The law of diminishing marginal returns

A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor.This is an example of

If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units,then the average product of 12 workers is

Damian owns a tattoo parlor and has hired three tattoo artists to work for him.The marginal product of labour is 8 for the first artist,12 for the second artist,and 7 for the third artist.What is Damian's average product of labour for these three tattoo artists?