Exam 11: Behind the Supply Curve- Inputs and Costs

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 five workers is _____ kilograms.

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 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 2 mixers and bakes 400 cakes per day,what is her average fixed cost?

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 65.The slope of the marginal product curve between two and four workers hired is:

The slope of the total product curve is equal to the average product of labour.

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.How many workers should you hire to minimize your marginal cost?

When a firm has to increase its output,average total costs will increase in the short run and then decrease in the long run,after the firm has time to add physical capital.

The long-run average total cost curve is tangent to an infinite number of short-run _____ cost curves.

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 1 mixer and bakes 400 cakes per day,what is her average total cost?

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 total cost of producing 43 statues is:

Austin's total fixed cost at the bakery is $3 600 a month.Austin employs 20 workers and pays each worker $8 an hour.The marginal product of the twentieth worker is 12 iced cupcakes an hour.What is the marginal cost of the last cupcake produced by the last worker Austin hired?

The _____ cost curve continually declines as more output is produced in the short run.

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 four cakes?

A farm can produce 1 000 kilograms of wheat per year with two workers and 1 300 kilograms of wheat per year with three workers.The marginal product of the third worker is _____ kilograms.

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 second worker is _____ units per period.

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.The marginal cost of increasing production from 19 to 36 kilograms of wheat is:

Suppose that when a coal-mining firm hires one,two,three,four,or five workers,the corresponding total output is 10,15,19,22,or 24 tonnes of coal,respectively.The marginal product of the third worker is _____ tonnes of coal.

The marginal product of labour is NOT:

If marginal cost is GREATER than average total cost,then average total cost is:

A business produces 10 pairs of eyeglasses.It incurs $30 in average variable cost and $5 in average fixed cost.The average total cost of producing 10 pairs of eyeglasses is: