Exam 11: Behind the Supply Curve- Inputs and Costs

Use the following to answer questions : Table: Cost Data Quantity of Output Variable Cost ( ) Total Cost ( ) 0 0 50 1 50 100 2 70 120 3 100 150 4 140 190 5 190 240 6 250 300 7 320 370 -(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the second purse is:

Use the following to answer questions : Figure: The Total Product -(Figure: The Total Product)Use Figure: The Total Product.When L₂ labour is hired,the total product is at a _____ and the marginal product of labour is _____.

Use the following to answer questions : Figure and Table: Variable,Fixed,and Total Costs Points on Graph Quantity of Labour (workers), Quantity of Wheat (bushels), Variable Cost, Fixed Cost, Total Cost, = + A 0 0 \ 0 \ 400 \ 400 B 1 19 200 400 600 C 2 36 400 400 800 D 3 51 600 400 1000 E 4 64 800 400 1200 F 5 75 1000 400 1400 G 6 84 1200 400 1600 H 7 91 1400 400 1800 I 8 96 1600 400 2000 -(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.When 96 kilograms of wheat is produced,the average fixed cost is _____,the average variable cost is _____,and the average total cost is _____.

Use the following to answer questions : Figure: The Total Product -(Figure: The Total Product)Use Figure: The Total Product.After hiring L₂ labour and producing at point B on the total product curve,hiring more labour beyond L₂ would cause the:

Use the following to answer questions : Figure: Change in the Total Product -(Figure: Change in the Total Product)Use Figure: Change in the Total Product.As indicated by the change in a production function from TP₁ to TP₂,the marginal product of labour curve has:

The _____ curve shows the additional cost of producing each additional unit of output.

Economies of scale are often the result of increased specialization,which can occur when output levels increase.

Use the following to answer questions : Figure: The Total Product -(Figure: The Total Product)Use Figure: The Total Product.Labour added from L₁ and up to L₂ is:

Use the following to answer questions : Table: Cakes Number of mixers Fixed Costs Average Variable Cost 1 \ 1,000 \ 10 2 1,500 7 3 2,500 4 -The long-run average cost curve will be upward sloping when the firm has:

Use the following to answer questions : Table: Costs of Birthday Cakes Quantity of cakes Variable cost, 0 0 1 15 2 25 3 30 4 38 5 50 6 70 -(Table: Costs of Birthday Cakes)Use Table: Costs of Birthday Cakes.Assume that fixed costs are $10.What is the average fixed cost of five cakes?

The fixed cost curve is:

Use the following to answer questions : Table: Workers and Output No. of Workers Output 1 10 2 25 3 35 4 43 5 48 -(Table: Workers and Output)Use Table: Workers and Output.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.You pay $10 per day on a loan from your uncle,regardless of how much you produce.You also pay $10 per day to each of the workers who you hire to make the mud statues.The variable cost of producing 25 statues is:

The long run is the period during which fixed costs do not change.

The slope of a long-run average total cost curve exhibiting diseconomies of scale is:

Use the following to answer questions : -When a firm adds capital,in the short run workers will be:

Use the following to answer questions : Figure: The Total Product -(Figure: The Total Product)Use Figure: The Total Product.If the firm hires more than L₂ labour,the total product will _____ because the marginal product of labour is _____.

Use the following to answer questions : Table: Cost Data Quantity of Output Variable Cost ( ) Total Cost ( ) 0 0 50 1 50 100 2 70 120 3 100 150 4 140 190 5 190 240 6 250 300 7 320 370 -(Table: Cost Data)Use Table: Cost Data.The average fixed cost of producing two purses is:

Use the following to answer questions : Table: Tonya's Production Function for Apples Quantity of Land (hectares) Quantity of Labour Total Product (apples picked) 10 0 0 10 1 8 10 2 15 10 3 21 10 4 26 -With one input fixed,a firm will find that as it attempts to produce more,the total product curve increases at a decreasing rate and its marginal product curve is:

You run a business producing picture frames.This month,your total cost of production is $10 000,your variable cost of production is $6 000,and you produce 3 000 picture frames.It follows that the average _____ cost is _____.

Use the following to answer questions : Table: Costs of Producing Bagels Quantity of Bagels (per period) Total Variable Costs Total Fixed Costs 0 \ 0.00 \ 0.10 1 0.20 0.10 2 0.30 0.10 3 0.35 0.10 4 0.45 0.10 5 0.60 0.10 6 0.80 0.10 7 1.05 0.10 8 1.35 0.10 -(Table: Costs of Producing Bagels)Use Table: Costs of Producing Bagels.The marginal cost of producing the sixth bagel is: