FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: The Costs of Production

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 181

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following explains why long-run average cost at first decreases as output increases?

A) diseconomies of scale
B) less-efficient use of inputs
C) fixed costs becoming spread out over more units of output
D) gains from specialization of inputs

E) None of the above
F) C) and D)

Correct Answer

verified

Show Answer

Question 182

True/False

Review LaterAdd Note

Review Later

If the marginal-cost curve is rising, then so is the average-total-cost curve.

A) True
B) False

Correct Answer

verified

Show Answer

Question 183

Multiple Choice

Review LaterAdd Note

Table 13-1 -Refer to Table 13-1. What is total output when 4 workers are hired?

In the short run, if a firm produces nothing, total costs are zero.

Table 13-3 -Refer to Table 13-3. If the firm can sell its output for $1 per unit, what is the profit-maximizing level of output?

Scenario 13-10 Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. -Refer to Scenario 13-10. An accountant would calculate the total cost for one photo frame to be

Table 13-17 Consider the following table of long-run total cost for four different firms: -Refer to Table 13-17. Which firm's long-run marginal cost decreases as output increases?

Table 13-18 -Refer to Table 13-18. What is the shape of the marginal-cost curve?

In the long run a company that produces and sells popcorn incurs total costs of $1,050 when output is 90 canisters and $1,200 when output is 120 canisters. The popcorn company exhibits

Which of the following is an example of an implicit cost? i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm Ii) interest paid on the firm's debt Iii) rent paid by the firm to lease office space

Scenario 13-1 Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000. Korie currently has $500,000 in the bank earning 3 percent interest per year. -Refer to Scenario 13-1. If Korie purchases the factory with her own money, what is the annual implicit opportunity cost of purchasing the factory?

Scenario 13-11 Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. -Refer to Scenario 13-11. An economist would calculate the total profit for one birdhouse to be

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits

Table 13-3 -Refer to Table 13-3. The marginal product of the second worker is

Table 13-20 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-20. Firm B is experiencing diseconomies of scale.

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. This firm experiences diseconomies of scale at what output levels?

How long does it take a firm to go from the short run to the long run?

Table 13-18 -Refer to Table 13-18. What is the total output of five workers?

Scenario 13-11 Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. -Refer to Scenario 13-11. An accountant would calculate the total profit for one birdhouse to be

Marcus sells 300 candy bars at $0.50 each. His total costs are $125. His profits are