Exam 9: The Firm: Cost and Output Determination

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 marginal physical product of the 6th worker is

Output Fixed Costs Variable Costs Total Costs Average Total Costs Average Variable Costs Marginal Costs 0 \ 0 \ 100 1 30 2 50 3 60 4 120 5 200 -In the above table,what are the total fixed costs for an output of 4?

The observation that beyond some point,successive increases in a variable factor of production added to a fixed factor of production lead to smaller and smaller increases in output is

A production function is a(n)

-Use the above figure.The AFC at output level 20 is

As successive equal increases in a variable factor of production are added to fixed factors of production,there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will decline.This is known as the law of

Graphically,what does the marginal product curve for a labor input look like? Explain in words.

The long run is defined as the time period in which

Total Output Total Costs 0 \ 10 1 18 2 21 3 23 4 24 5 26 6 29 7 33 8 38 9 44 10 51 -Using the above table,we see that when output is 4 units,average total cost equals

-Refer to the above figure.The curve represents a

-Notice the costs as given in the table below.What is the total fixed cost in the table below? Total Output Total Costs 0 \ 10 1 \ 15 2 \ 18 3 \ 20 4 \ 21 5 \ 23

The main source of diseconomies of scale is

Suppose that a firm is currently producing 500 units of output.At this level of output,TVC = $1,000 and TFC = $2,500.What is the firms ATC?

The short run is

A firm has the following production relationship between labor and output,for a fixed capital stock. Labor Output 0 0 1 5 2 11 3 18 4 23 5 26 -According to the above table,what is the marginal product of the 4th unit of labor?

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 marginal product of the fourth worker is

Economists generally define the short run as being

Quantity of Total Labor Product 1 20 2 46 3 63 4 72 -Refer to the above table.When the quantity of labor equals 3,what does the average product equal?

"If an industry's minimum efficient scale is between 2,000 and 4,000 units of output,then a firm producing 2,000 units of output in that industry has a cost-saving advantage over another firm producing 4,000 units of output in the same industry." Do you agree or disagree? Explain.

The long run for a business is a period of time