Exam 9: The Firm: Cost and Output Determination

If the average product of 20 workers is 100 bushels of wheat and the average product of 21 workers of wheat is 99 bushels of wheat,then the marginal product of the 21st worker was

Short-run total cost is defined as

The addition to total costs associated with the production of one more unit of output is referred to as

The lowest rate of output per unit of time at which long-run average costs for a firm are at a minimum defines

If the long-run average cost curve continuously slopes upward as output rises,minimum efficient scale would be

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

"The long-run average cost curve is derived from adding all short-run average cost curves together." Do you agree or disagree? Explain.

Labor Output Average Physical Product Marginal Product 1 10 - 2 12 3 15 4 52 5 9 -Using the above table,the average physical product and marginal product when 4 workers are employed are

Marginal cost is equal to

The long run is defined as a time period during which full adjustment can be made to any change in the economic environment.Thus in the long run,all factors of production are variable.Long-run curves are sometimes called planning curves,and the long run is sometimes called the

If Microsoft is determining whether to build a new plant in Southern California or in New Mexico,it is making a(n)________ decision.

A firm's long-run average cost curve is

Q (output) TFC TVC TC AFC AVC ATC MC 0 \ 0 - - - - 1 \ 10 2 \ 5 \ 15 3 \ 15 4 \1 6.75 -Using the above table,the TVC,the TC,and the MC when output is 4 units are

The minimum efficient scale in the figure below shows that

MC = AVC and MC = ATC at points at which

-Refer to the above figure.Constant returns to scale exist

When total product is decreasing,marginal product is

Use the information from the below table to answer following question(s). Input of Labor Total Product 0 0 1 20 2 50 3 80 4 105 5 125 6 140 7 150 -In the above table,the average product for 5 units of labor is

Every point on the long-run average cost curve is

Quantity of Workers Total Product Average Physical Product Marginal Physical Product 0 0 1 3 2 7 3 12 4 16 5 18 6 18 -In the above table,the average physical product of the 6th worker is