Exhibit 7-8 Costs schedules for producing pizza $\begin{array}{|c|c|c|c|c|} \hline\text { Pizzas } & \begin{array}{c} \text { Fixed } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Variable } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Total } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} \\ \hline 0 & \$ & \$ & \$ & \$ \\ 1 & & 5 & & \\ 2 & & 13 & & \\ 3 & & && 10 \\ 4 & 100 & &140 & \\ 5 & & &&20 \\ 6 & &85 & & \\ 7 & & & 215 \\ \hline \end{array}$ -By filling in the blanks in Exhibit 7-8, the total cost of producing 5 pizzas is shown to be equal to:

A) $100. B) $105. C) $113. D) $123. E) $160. A) $100. B) $105. C) $113. D) $123. E) $160.

Exhibit 7-12 Cost schedule for producing pizza \[\begin{array} { | c | c | c | c | } \hline \text { Pizzas } & \begin{array} { c } \text { Fixed } \\ \text { Cost } \end{array} & \begin{array} { c } \text { Variable } \\ \text { Cost } \end{array} & \begin{array} { c } \text { Total } \\ \text { Cost } \end{array} \\ \hline 0 & \$ & \$ & \$ \\ 1 &&&48 \\ 2 &&17 \\ 3 &&27 \\ 4 &&&78 \\ 5 &40 \\ 6 &&64 \\ 7 &&80\\ \hline \end{array}\] -By filling in the blanks in Exhibit 7-12, the AFC of 4 pizzas is shown to be equal to:

A) $10. B) $9.50. C) $19.50. D) $40. E) $78. A) $10. B) $9.50. C) $19.50. D) $40. E) $78.

Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production \[\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Total } \\ \text { Product } \end{array} & \begin{array} { c } \text { Total } \\ \text { Variable Cost } \end{array} & \begin{array} { c } \text { Total } \\ \text { Cost } \end{array} \\ \hline 0 \text { pizzas } & \$ 0 & \$ 20 \\ 10 & 50 & 70 \\ 20 & 80 & 100 \\ 30 & 130 & 150 \\ 40 & 230 & 250 \\ \hline \end{array}\] -In Exhibit 7-11, what is the marginal cost of increasing production from 10 to 20 pizzas per hour?

A) $2 per pizza. B) $3 per pizza. C) $4 per pizza. D) $5 per pizza. A) $2 per pizza. B) $3 per pizza. C) $4 per pizza. D) $5 per pizza.

A) always less than zero. B) never less than accounting profit. C) less than accounting profit if implicit costs are zero. D) less than accounting profit if implicit costs are greater than zero. A) always less than zero. B) never less than accounting profit. C) less than accounting profit if implicit costs are zero. D) less than accounting profit if implicit costs are greater than zero.

Exhibit 7-8 Costs schedules for producing pizza $\begin{array}{|c|c|c|c|c|} \hline\text { Pizzas } & \begin{array}{c} \text { Fixed } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Variable } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Total } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} \\ \hline 0 & \$ & \$ & \$ & \$ \\ 1 & & 5 & & \\ 2 & & 13 & & \\ 3 & & && 10 \\ 4 & 100 & &140 & \\ 5 & & &&20 \\ 6 & &85 & & \\ 7 & & & 215 \\ \hline \end{array}$ -By filling in the blanks in Exhibit 7-8, the total cost of producing zero pizzas is shown to be equal to:

A) zero. B) $100. C) $5. D) $105. E) $95. A) zero. B) $100. C) $5. D) $105. E) $95.

Exam 7: Production Costs

A firm estimates that when output is 10, its total costs are $900. It also finds that when output is 11, its total costs are $920. The marginal cost of the eleventh unit of output is:

(Multiple Choice)

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Question 41

Which of the following is an implicit cost of going to college?

(Multiple Choice)

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Question 42

Economists say that a firm has a normal profit when:

(Multiple Choice)

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Question 43

Which statement about the total variable cost curve is true?

(Multiple Choice)

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Question 44

The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's:

(Multiple Choice)

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Question 45

The vertical distance between the average total cost curve and the average variable cost curve at any given output level equals average fixed cost at that particular output level.

(True/False)

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Question 46

Exhibit 7-8 Costs schedules for producing pizza Pizzas Fixed Cost Variable Cost Total Cost Marginal Cost 0 \ \ \ \ 1 5 2 13 3 10 4 100 140 5 20 6 85 7 215 -By filling in the blanks in Exhibit 7-8, the total cost of producing 5 pizzas is shown to be equal to:

(Multiple Choice)

4.8/5

(70)

Question 47

Exhibit 7-12 Cost schedule for producing pizza Pizzas Fixed Cost Variable Cost Total Cost 0 \ \ \ 1 48 2 17 3 27 4 78 5 40 6 64 7 80 -By filling in the blanks in Exhibit 7-12, the AFC of 4 pizzas is shown to be equal to:

(Multiple Choice)

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Question 48

Assume both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the AVC curve, marginal cost must be:

(Multiple Choice)

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Question 49

A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and takes a seat. The change in the bus company's total cost as a result of transporting one more passenger on this trip is called:

(Multiple Choice)

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Question 50

Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production Total Product Total Variable Cost Total Cost 0 pizzas \ 0 \ 20 10 50 70 20 80 100 30 130 150 40 230 250 -In Exhibit 7-11, what is the marginal cost of increasing production from 10 to 20 pizzas per hour?

(Multiple Choice)

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Question 51

Which of the following is not a source of economies of scale?

(Multiple Choice)

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Question 52

In order for the law of diminishing returns to be present, we must have:

(Multiple Choice)

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Question 53

Long-run economies of scale exist when the long-run average cost curve:

(Multiple Choice)

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Question 54

Normal profit is a term for:

(Multiple Choice)

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Question 55

Exhibit 7-4 A marginal product curve -As shown in Exhibit 7-4, which of the following conclusions can you draw about the firm's total output curve?

(Multiple Choice)

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Question 56

Economic profit is:

(Multiple Choice)

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Question 57

Each short-run average total cost curve is tangent at its lowest point to the long-run average cost curve.

(True/False)

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Question 58

Exhibit 7-8 Costs schedules for producing pizza Pizzas Fixed Cost Variable Cost Total Cost Marginal Cost 0 \ \ \ \ 1 5 2 13 3 10 4 100 140 5 20 6 85 7 215 -By filling in the blanks in Exhibit 7-8, the total cost of producing zero pizzas is shown to be equal to:

(Multiple Choice)

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Question 59

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be:

(Multiple Choice)

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Question 60

A firm estimates that when output is 10, its total costs are $900. It also finds that when output is 11, its total costs are $920. The marginal cost of the eleventh unit of output is:

Which of the following is an implicit cost of going to college?

Economists say that a firm has a normal profit when:

Which statement about the total variable cost curve is true?

The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's:

The vertical distance between the average total cost curve and the average variable cost curve at any given output level equals average fixed cost at that particular output level.

Exhibit 7-8 Costs schedules for producing pizza Pizzas Fixed Cost Variable Cost Total Cost Marginal Cost 0 \ \ \ \ 1 5 2 13 3 10 4 100 140 5 20 6 85 7 215 -By filling in the blanks in Exhibit 7-8, the total cost of producing 5 pizzas is shown to be equal to:

Exhibit 7-12 Cost schedule for producing pizza Pizzas Fixed Cost Variable Cost Total Cost 0 \ \ \ 1 48 2 17 3 27 4 78 5 40 6 64 7 80 -By filling in the blanks in Exhibit 7-12, the AFC of 4 pizzas is shown to be equal to:

Assume both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the AVC curve, marginal cost must be:

A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and takes a seat. The change in the bus company's total cost as a result of transporting one more passenger on this trip is called:

Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production Total Product Total Variable Cost Total Cost 0 pizzas \ 0 \ 20 10 50 70 20 80 100 30 130 150 40 230 250 -In Exhibit 7-11, what is the marginal cost of increasing production from 10 to 20 pizzas per hour?

Which of the following is not a source of economies of scale?

In order for the law of diminishing returns to be present, we must have:

Long-run economies of scale exist when the long-run average cost curve:

Normal profit is a term for:

Exhibit 7-4 A marginal product curve -As shown in Exhibit 7-4, which of the following conclusions can you draw about the firm's total output curve?

Economic profit is:

Each short-run average total cost curve is tangent at its lowest point to the long-run average cost curve.

Exhibit 7-8 Costs schedules for producing pizza Pizzas Fixed Cost Variable Cost Total Cost Marginal Cost 0 \ \ \ \ 1 5 2 13 3 10 4 100 140 5 20 6 85 7 215 -By filling in the blanks in Exhibit 7-8, the total cost of producing zero pizzas is shown to be equal to:

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

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