Exam 11: Behind the Supply Curve- Inputs and Costs

Which cost concept is CORRECTLY defined?

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 51 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 Average Total Cost Curve -(Figure: The Average Total Cost Curve)Use Figure: The Average Total Cost Curve.The total cost of producing five pairs of boots is approximately:

Use the following to answer questions : -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 3 is the _____ cost curve.

Use the following to answer questions : Figure: The Average Total Cost Curve -(Figure: The Average Total Cost Curve)Use Figure: The Average Total Cost Curve.The total cost of producing 10 pairs of boots is approximately:

Use the following to answer questions : -(Table: Output and Costs)Use Table: Output and Costs.When output increases from 1 to 2,marginal cost equals:

Use the following to answer questions : -In the long run:

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.Marginal cost reaches its minimum value for the _____ bagel.

Use the following to answer question 237: Table: Long-Run Total Cost Quantity of Soybeans (bushels) Long-Run Total Cost 1 \ 50 2 80 3 90 4 120 5 200 6 300 -(Table: Long-Run Total Cost)Use Table: Long-Run Total Cost.This soybean grower receives constant returns to scale over the _____ and _____ kilograms.

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 48 statues is:

When marginal cost is ABOVE average variable cost,average variable cost must be:

Use the following to answer questions : Table: Production Function for Soybeans Quantity of Labour (workers) Quantity of Soybeans (bushels) 0 0 1 25 2 45 3 60 4 70 5 75 -(Table: Production Function for Soybeans)Use Table: Production Function for Soybeans.Assume that the fixed input,capital,is 10 hectares of land and a tractor,which have a combined cost of $150 per day.The cost of labour is $100 per worker per day.The variable cost of producing 45 kilograms of soybeans is:

A firm that is able to use its inputs more efficiently as it increases production in the long run BEST demonstrates:

Average total cost is:

The long-run average cost curve is tangent to a series of short-run average total cost curves.

Marginal cost is the change in _____ cost resulting from a one-unit change in _____.

A firm's long-run average total costs increase as it produces more output.This firm has:

An input whose quantity can be changed in the short run is a(n)_____ input.

The long-run average total cost curve shows the relationship between output and the average total cost when fixed cost has been chosen to minimize the average total cost for each level of output.

Use the following to answer questions : Figure: The Marginal Product of Labour -(Figure: Marginal Product of Labour)Use Figure: The Marginal Product of Labour.The total product of labour for eight workers is _____ kilograms.