Exam 22: The Firm: Cost and Output Determination

At Phil's Pretzel Stand, we found the following: 4 laborers produced 66 pretzels 5 laborers produced 76 pretzels 6 laborers produced 85 pretzels 7 laborers produced 88 pretzels What was the marginal physical product of the seventh laborer?

Which of the following would be an example of a fixed cost?

Marginal physical product of labor equals

For a hotdog vendor, the hotdog stand represents his

Notice the costs of production for a firm in the table below. What are the total costs for outputs of 7 units and 8 units respectively?

If we add successive laborers to work a given amount of land on a wheat farm, eventually

The marginal product of labor may increase rapidly initially as more

-In the above figure, for any output level less than Q2, this firm experiences

Which of the following statements about a firm's short-run variable costs is correct?

Which of the following changes a firm's production function?

-In the above table, what are the total fixed costs for an output of 4?

After some point successive equal increases in a variable factor of production, when added to a fixed amount of inputs, will result in smaller increases in output. This is known as

The short run is

Average product is calculated by dividing total product by the

-Refer to the above figure. Average variable costs are represented by curve

The average fixed cost curve

A firm has average fixed costs of $0.20 and average variable costs of $2.50 at an output of 500 units. The firm's total costs are therefore

-According to the above table, what is the marginal product of the 5th unit of labor?

The focus of firm decisions in the short run is primarily on

"Diminishing marginal product is a basic law because new workers are always less qualified than the existing workers." Do you agree or disagree? Explain.