Exam 11: Behind the Supply Curve- Inputs and Costs

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.Which choice is a likely cause of the shift in production function from TP₁ to TP₂?

The U shape of the long-run average total cost curve is primarily due to:

The total product curve for the Wallmark Greeting Card Company shows how the quantity of output depends on the quantity of the variable input for a given amount of the fixed inputs.

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.The marginal product of the fourth worker is _____ units per period.

Use the following to answer question 160: Table: Output and Marginal Cost Output Marginal Cost 1 15 2 10 3 5 4 8 5 12 6 20 -(Table: Output and Marginal Cost)Use Table: Output and Marginal Cost.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.How many statues should you produce to minimize your average variable costs?

The production function provides information about:

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 fixed cost of producing 25 statues is:

A production function that is characterized by economies of scale will not be subject to diminishing returns.

As defined in the text,the long run is a planning period:

Use the following to answer questions : -(Table: Output and Costs)Use Table: Output and Costs.When output is 3,average total cost equals:

Use the following to answer questions : Figure: The Total Product -(Figure: The Total Product)Use Figure: The Total Product.Between points A and B,the marginal product of labour is:

Use the following to answer questions : -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 2 is the _____ cost curve.

When an additional unit of a variable input adds less to the total product than the previous unit,the firm has:

For Heidi,the marginal cost of producing one additional photograph equals the change in _____ cost divided by the change in the _____ of photographs.

Use the following to answer questions : Figure: The Total Product -(Figure: The Total Product)Use Figure: The Total Product.As labour is hired between L₁ and L₂,the total product is _____ and the marginal product is _____.

The marginal product of labour is the change in _____ divided by the change in _____.

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 total cost of producing six bagels is:

It is common in large breweries for the long-run average total cost to decline as output increases.This indicates that many breweries operate with:

Use the following to answer questions : -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 crosses the average total cost curve at:

The average total cost of producing cell phones in a factory is $20 at the current output level of 100 units per week.If the fixed cost is $1 200 per week: