Exam 11: Behind the Supply Curve- Inputs and Costs

Use the following to answer questions : -(Figure: Long-Run Average Cost)Use Figure: Long-Run Average Cost.This firm has _____ in the output region from B to C.

Use the following to answer question 358: Table: Linda's Copy Shop Production Quantity of Variable Input (units) Quantity of Output (copies) 0 0 1 100 2 200 3 350 4 450 5 525 -Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q²,where Q is the quantity of dogs groomed.Given this expression,if Janet grooms five dogs,her total costs will be:

The slope of a long-run average total cost curve exhibiting increasing returns to scale is:

In the short run:

When Aishe's Bar-B-Que produces 10 pork sandwiches,the total cost is $5.When 11 pork sandwiches are produced,the total cost rises to $6.From this we know that the marginal cost of the eleventh pork sandwich:

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 -(Table: Tonya's Production Function for Apples)Use Table: Tonya's Production Function for Apples.In the short run,Tonya's fixed input(s)is/are:

Use the following to answer questions : Table: Total Product and Marginal Product Labour per Day Total Pro (units per p 0 0 1 10 2 30 3 70 4 90 5 100 6 107 7 110 8 105 -(Table: Total Product and Marginal Product)Use Table: Total Product and Marginal Product.Negative marginal returns begin when the _____ worker is added.

The long run is a planning period:

If the average total cost curve and the average variable cost curve are both U-shaped,and fixed costs are non-zero,then the minimum point of the average total cost curve must lie above the minimum point of the average variable cost curve.

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 total cost of producing 60 kilograms of soybeans is:

Use the following to answer questions : Table: Production of Bagels Number of Workers Per Period Thousands of Bagels Per Period 0 0 1 5 2 15 3 30 4 42 5 51 6 57 7 60 8 50 9 -(Table: Production of Bagels)Use Table: Production of Bagels.Diminishing marginal returns begin with the addition of the _____ worker.

The _____ curve shows the absolute quantities of output that can be obtained from different quantities of a variable input,assuming other inputs are fixed.

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 marginal cost of the fourth cake?

The total cost curve is:

When an increase in the firm's output reduces its long-run average total cost,it has _____ returns to scale.

"Diminishing marginal returns" means that:

When the long-run average total cost curve is upward sloping as output increases,the firm has diseconomies of scale.

The larger the output,the more output over which fixed cost is distributed.Called the _____ effect,this leads to a _____ average _____ cost as output rises.

The term diminishing returns refers to a:

The curve that shows the additional cost of each additional unit of output is called the _____ curve.