Exam 11: Behind the Supply Curve- Inputs and Costs

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.Janet notices that,as she grooms more dogs,her total cost curve:

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

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 60 kilograms of soybeans is:

When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,the total product is 60,and when she hires four workers,the total product is 75.The slope of the marginal product curve between two and four workers hired is:

Use the following to answer questions : Table: Production of Cabinets Quantity of Labour (workers) Quantity of Cabinets Marginal Product of Labour (units per period) 0 0 1 5 5 2 11 6 3 16 5 4 20 4 5 23 3 6 25 2 7 26 1 8 25 -1 -(Table: Production of Cabinets)Use Table: The Production of Cabinets.After the _____ worker,the firm begins to have diminishing returns to labour.

Total cost divided by the quantity of output produced is:

When all of a firm's inputs are doubled,input prices do not change,and this results in the firm's level of production more than doubling,a firm is operating:

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.The marginal product of the fourth worker is _____ apples.

A _____ is an organization that produces goods or services for sale.

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

A firm that has lower costs per unit as it increases production in the long run has:

Think about running a restaurant.It is likely the case that:

An aircraft manufacturer doubles the amount of all of the inputs it uses-the factory doubles in size and twice as many workers are hired.After this expansion,the number of aircraft produced triples.If the price of inputs is unchanged,this means that aircraft manufacturer is operating with:

Use the following to answer questions : -(Figure: Short-Run Costs II)Use Figure: Short-Run Costs II.Curve 1 is the _____ cost curve.

At the current level of output,Becca Furniture's marginal cost curve is above the average total cost curve.This means Becca Furniture's average total cost curve:

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 -(Table: Cakes)Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 3 mixers and bakes 200 cakes per day,what is her average fixed cost?

Use the following to answer questions : Figure: The Total Product -(Figure: The Total Product)Use Figure: The Total Product.For hiring labour between 0 and L₁,the:

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

If marginal cost is GREATER than average total cost:

Where the long-run average total cost curve is at its lowest point,it is tangent to the _____ of the corresponding short-run average total cost curve.