Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 \[\begin{array} { l c c c } \text { Produce } & \begin{array} { c } \text { Using } \\ \text { Techniques } \end{array} & \begin{array} { c } \text { Units of Variable } \\ \text { K } \end{array} & \begin{array} { c } \text { Inputs } \\ \text { L } \end{array} \\ \hline \text { 1 unit of output } & & & \\ & \text { A } & 8 & 8 \\ & \text { B } & 4 & 12 \\ 2 \text { units of output } & & & \\ & \text { A } & 14 & 12 \\ & \text { B } & 8 & 20 \\ 3 \text { units of output } & & & \\ & \text { A } & 16 & 12 \\ & \text { B } & 12 & 22 \end{array}\] -Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average variable cost of producing two units of output is

A) $20. B) $40. C) $90. D) $100. A) $20. B) $40. C) $90. D) $100.

Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 \[\begin{array} { l c c c } \text { Produce } & \begin{array} { c } \text { Using } \\ \text { Techniques } \end{array} & \begin{array} { c } \text { Units of Variable } \\ \text { K } \end{array} & \begin{array} { c } \text { Inputs } \\ \text { L } \end{array} \\ \hline \text { 1 unit of output } & & & \\ & \text { A } & 8 & 8 \\ & \text { B } & 4 & 12 \\ 2 \text { units of output } & & & \\ & \text { A } & 14 & 12 \\ & \text { B } & 8 & 20 \\ 3 \text { units of output } & & & \\ & \text { A } & 16 & 12 \\ & \text { B } & 12 & 22 \end{array}\] -Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, which of the following statements is true?

A) The firm will use production technique A to produce all three units of output. B) The firm will use production technique B to produce all three units of output. C) The firm will use production technique B to produce the first two units of output and production technique A to produce the third unit of output. D) The firm will use production technique A to produce the first unit and production technique B to produce the second and third units of output. A) The firm will use production technique A to produce all three units of output. B) The firm will use production technique B to produce all three units of output. C) The firm will use production technique B to produce the first two units of output and production technique A to produce the third unit of output. D) The firm will use production technique A to produce the first unit and production technique B to produce the second and third units of output.

Exam 8: Short-Run Costs and Output Decisions

Refer to the information provided in Table 8.2 below to answer the questions that follow. Table 8.2 Numberof Earrings TVC MC AVC TFC TC AFC ATC 0 100 1 50 2 95 3 46.67 4 300 5 270 -Refer to Table 8.2. If Sherry produces two pairs of earrings, her marginal cost is

(Multiple Choice)

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Question 21

For a perfectly competitive firm, when P = MC = ATC, the most profit the firm can earn is zero.

(True/False)

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Question 22

Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 Produce Using Techniques Units of Variable K Inputs L 1 unit of output A 8 8 B 4 12 2 units of output A 14 12 B 8 20 3 units of output A 16 12 B 12 22 -Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average variable cost of producing two units of output is

(Multiple Choice)

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Question 23

Twenty‐five students in a class take a test for which the average grade is 75. Then a twenty‐sixth student enters the class, takes the test, and scores 80. The test average calculated with 26 students will ________.

(Multiple Choice)

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Question 24

Marginal cost is average variable cost when .

(Multiple Choice)

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Question 25

Economists usually assume that is a fixed input in the run.

(Multiple Choice)

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Question 26

Refer to the information provided in Figure 8.6 below to answer the questions that follow. Figure 8.6 -Refer to Figure 8.6. Curve 1 is Outdoor Equipment's

(Multiple Choice)

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Question 27

When marginal cost is between average variable cost and average total cost, marginal cost is increasing.

(True/False)

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Question 28

Joe's Butcher Shop is producing where MR = MC; Joe's Butcher Shop must be

(Multiple Choice)

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Question 29

The upward sloping portion of the perfectly competitive firm's average total cost curve is the firm's short run supply curve.

(True/False)

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Question 30

As output increases, average fixed costs

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Question 31

A short run total cost schedule is a cost schedule shifted upward by the amount of cost.

(Multiple Choice)

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Question 32

Assume Dell Computer Company operates in a perfectly competitive market producing 5,000 computers per day. At this output level, marginal cost exceeds this firm's price. To maximize profits, Dell should

(Multiple Choice)

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Question 33

Any firm's total revenue equals

(Multiple Choice)

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Question 34

The short-run average total cost curve eventually begins to increase at an increasing rate because of

(Multiple Choice)

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Question 35

In perfect competition, the marginal revenue curve

(Multiple Choice)

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Question 36

If a firm's demand curve is perfectly elastic, then at the profit maximizing level of output

(Multiple Choice)

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Question 37

Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to and their profit maximizing level of output to .

(Multiple Choice)

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Question 38

Refer to the information provided in Figure 8.9 below to answer the questions that follow. Figure 8.9 -Refer to Figure 8.9. At the market price of $18, if this farmer produces the profit maximizing quantity, what profit will he make?

(Multiple Choice)

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Question 39

Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 Produce Using Techniques Units of Variable K Inputs L 1 unit of output A 8 8 B 4 12 2 units of output A 14 12 B 8 20 3 units of output A 16 12 B 12 22 -Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, which of the following statements is true?

(Multiple Choice)

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Question 40

Refer to the information provided in Table 8.2 below to answer the questions that follow. Table 8.2 Numberof Earrings TVC MC AVC TFC TC AFC ATC 0 100 1 50 2 95 3 46.67 4 300 5 270 -Refer to Table 8.2. If Sherry produces two pairs of earrings, her marginal cost is

For a perfectly competitive firm, when P = MC = ATC, the most profit the firm can earn is zero.

Twenty‐five students in a class take a test for which the average grade is 75. Then a twenty‐sixth student enters the class, takes the test, and scores 80. The test average calculated with 26 students will ________.

Marginal cost is average variable cost when .

Economists usually assume that is a fixed input in the run.

Refer to the information provided in Figure 8.6 below to answer the questions that follow. Figure 8.6 -Refer to Figure 8.6. Curve 1 is Outdoor Equipment's

When marginal cost is between average variable cost and average total cost, marginal cost is increasing.

Joe's Butcher Shop is producing where MR = MC; Joe's Butcher Shop must be

The upward sloping portion of the perfectly competitive firm's average total cost curve is the firm's short run supply curve.

As output increases, average fixed costs

A short run total cost schedule is a cost schedule shifted upward by the amount of cost.

Assume Dell Computer Company operates in a perfectly competitive market producing 5,000 computers per day. At this output level, marginal cost exceeds this firm's price. To maximize profits, Dell should

Any firm's total revenue equals

The short-run average total cost curve eventually begins to increase at an increasing rate because of

In perfect competition, the marginal revenue curve

If a firm's demand curve is perfectly elastic, then at the profit maximizing level of output

Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to and their profit maximizing level of output to .

Refer to the information provided in Figure 8.9 below to answer the questions that follow. Figure 8.9 -Refer to Figure 8.9. At the market price of $18, if this farmer produces the profit maximizing quantity, what profit will he make?

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Social Choice

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing and Transitional Economies

Filters

Exam 8: Short-Run Costs and Output Decisions

Refer to the information provided in Table 8.2 below to answer the questions that follow. Table 8.2 Numberof Earrings TVC MC AVC TFC TC AFC ATC 0 100 1 50 2 95 3 46.67 4 300 5 270 -Refer to Table 8.2. If Sherry produces two pairs of earrings, her marginal cost is

For a perfectly competitive firm, when P = MC = ATC, the most profit the firm can earn is zero.

Twenty‐five students in a class take a test for which the average grade is 75. Then a twenty‐sixth student enters the class, takes the test, and scores 80. The test average calculated with 26 students will ________.

Marginal cost is ________ average variable cost when ________.

Economists usually assume that ________ is a fixed input in the ________ run.

Refer to the information provided in Figure 8.6 below to answer the questions that follow. Figure 8.6 -Refer to Figure 8.6. Curve 1 is Outdoor Equipment's

When marginal cost is between average variable cost and average total cost, marginal cost is increasing.

Joe's Butcher Shop is producing where MR = MC; Joe's Butcher Shop must be

The upward sloping portion of the perfectly competitive firm's average total cost curve is the firm's short run supply curve.

As output increases, average fixed costs

A short run total cost schedule is a ________ cost schedule shifted upward by the amount of ________ cost.

Assume Dell Computer Company operates in a perfectly competitive market producing 5,000 computers per day. At this output level, marginal cost exceeds this firm's price. To maximize profits, Dell should

Any firm's total revenue equals

The short-run average total cost curve eventually begins to increase at an increasing rate because of

In perfect competition, the marginal revenue curve

If a firm's demand curve is perfectly elastic, then at the profit maximizing level of output

Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to ________ and their profit maximizing level of output to ________.

Refer to the information provided in Figure 8.9 below to answer the questions that follow. Figure 8.9 -Refer to Figure 8.9. At the market price of $18, if this farmer produces the profit maximizing quantity, what profit will he make?

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Social Choice

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing and Transitional Economies

Filters

Marginal cost is average variable cost when .

Economists usually assume that is a fixed input in the run.

A short run total cost schedule is a cost schedule shifted upward by the amount of cost.

Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to and their profit maximizing level of output to .