Exam 8: Short-Run Costs and Output Decisions

Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3 -Refer to Figure 8.3. If the total fixed cost is $50, then average total cost of producing 10 basketballs is

The marginal cost curve intersects the ________ at its minimum.

The short-run is a period of less than one year.

Marginal costs reflect changes in variable costs.

If an individual perfectly competitive firm charges a price above the industry equilibrium price, it will

If marginal cost is below average total cost, average total cost will

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 3 is Outdoor Equipment's

The fast-food industry is not considered perfectly competitive because

Refer to the information provided in Figure 8.5 below to answer the questions that follow. Figure 8.5 -Refer to Figure 8.5. If two ovens are produced, average variable costs are

Which statement is NOT true regarding the total variable cost curve?

Refer to the information provided in Figure 8.10 below to answer the questions that follow. Figure 8.10 -Refer to Figure 8.10. Panel ________ represents the demand curve facing a perfectly competitive producer of wheat.

Related to the Economics in Practice on page 175: When there are a few empty seats on an airline flight, the marginal cost of adding extra passengers to occupy those seats

Average total cost of producing 100 units of output is $5. If the marginal cost of producing the 101st unit is $4, then average total cost of 101 units is less than $5.

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 per bale, if this farmer produces the profit maximizing level of hay, the total revenue would be

Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4 -Refer to Figure 8.4. After Point A,

At the point where marginal cost equals average total cost, average total cost will be

The total revenue curve for a perfectly competitive firm will be a straight line with positive slope.

A point on a total variable cost curve shows the ________ variable cost a firm will bear to produce a certain output.

Refer to the information provided in Figure 8.5 below to answer the questions that follow. Figure 8.5 -Refer to Figure 8.5. The marginal cost of the sixth oven is

If a firm's total costs are $80 when 10 units of output are produced and $90 when 11 units of output are produced, the marginal cost of the 11th unit is