Exam 9: The Firm: Cost and Output Determination

Quantity of Total Labor Product 1 20 2 46 3 63 4 72 -Refer to the above table.What does the marginal product equal when the quantity of labor goes from 1 to 2?

When increasing its output results in falling costs,a firm that can adjust all inputs is experiencing

Ajax Corporation has recently finished building a new factory.They moved into the factory a month ago and found that it is the perfect size given the amount they want to produce.Ajax is operating in the

When a firm uses technological improvements to increase output from the same amount of inputs,the result is

The marginal productivity of labor will eventually decrease as more workers are employed because

Suppose a firm doubles its output in the long run.At the same time the unit cost of production remains unchanged.We can conclude that the firm is

When output is 100 units,the firm's total fixed cost is $500.What will this firm's total fixed cost be if output doubles to 200 units?

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 average product of labor when three laborers are employed?

In a graph showing the short-run cost curves,the one curve which declines continuously as we expand output is called

Which of the following would be an example of a fixed cost?

Which of the following would be an example of a fixed cost to a firm?

The change in total variable cost which accompanies one extra unit of output is

As a firm's production increases in the short run,the average total cost curve eventually slopes upward because

Q TFC TVC TC 0 \ 90 \ 0 \ 90 1 90 25 115 2 90 32 122 3 90 42 132 4 90 64 154 5 90 95 185 -Refer to the above table.At an output of 4 units,average variable costs are

Q TFC TVC TC AFC AVC ATC 1 2 \ 75 \ 25 3 \ 40 -Refer to the above table.What are total fixed costs at an output of 2 units?

Input of Labor (no. of workers in weeks) Total Product (no. of snowboards produced) 0 0 1 30 2 68 3 110 4 140 5 135 -In the above table,when the firm employs 3 workers,the marginal product will be

After some point successive equal increases in a variable factor of production,when added to a fixed amount of inputs,will result in smaller increases in output.This is known as

For a wheat farmer in the middle of harvesting system,a fixed input would be

Which of the following statements is not true about the short run and the long run?

Assume it takes 10 units of labor to produce 4 units of output.When the price of labor is $6 per unit and fixed costs equal $60,what is the total cost of those 4 units of output?