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 fixed cost of producing 6 pizzas is shown to be equal to:

A) $100. B) $150. C) $200. D) $185. E) $85. A) $100. B) $150. C) $200. D) $185. E) $85.

Exhibit 7-9 Cost schedule for firm X \[\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Output } \\ \text { Quantity } \end{array} & \begin{array} { c } \text { Total Fixed } \\ \text { Cost } \end{array} & \begin{array} { c } \text { Total Variable } \\ \text { Cost } \end{array} \\ \hline 0 & \$ 100 & \$ 0 \\ 1 & 100 & 50 \\ 2 & 100 & 84 \\ 3 & 100 & 108 \\ 4 & 100 & 127 \\ 5 & 100 & 150 \\ \hline \end{array}\] -As shown in Exhibit 7-9, the marginal cost of producing the third unit is:

A) $50. B) $16. C) $24. D) $23. A) $50. B) $16. C) $24. D) $23.

Exhibit 7-1 Production of pizza data \[\begin{array} { | c | c | } \hline \text { Workers } & \text { Pizzas } \\ \hline 0 & 0 \\ 1 & 4 \\ 2 & 10 \\ 3 & 15 \\ 4 & 18 \\ 5 & 19 \\ \hline \end{array}\] -Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:

A) 4. B) 10. C) 14. D) 6. E) 15. A) 4. B) 10. C) 14. D) 6. E) 15.

Exhibit 7-2 Cost schedule for pizza production \[\begin{array} { | c | c | c | c | } \hline \text { Pizzas } & \begin{array} { c } \text { Labor } \\ \text { Cost } \end{array} & \begin{array} { c } \text { Energy } \\ \text { Cost } \end{array} & \begin{array} { c } \text { Materials } \\ \text { Cost } \end{array} \\ \hline 0 & \$ 10 & \$ 0 & \$ 0 \\ 1 & 10 & 12 & 4 \\ 2 & 24 & 22 & 8 \\ 3 & 40 & 30 & 12 \\ 4 & 60 & 36 & 16 \\ 5 & 90 & 40 & 20 \\ \hline \end{array}\] -Exhibit 7-2 shows the labor, energy, and materials cost of making various quantities of pizzas. The table shows that the energy cost of making pizzas will:

A) increase at a decreasing rate. B) decrease at a decreasing rate. C) decrease at an increasing rate. D) increase at an increasing rate. E) increase at a constant rate. A) increase at a decreasing rate. B) decrease at a decreasing rate. C) decrease at an increasing rate. D) increase at an increasing rate. E) increase at a constant rate.

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 marginal cost of the fourth pizza is shown to be equal to:

A) $10. B) $11. C) $12. D) $13. E) $14. A) $10. B) $11. C) $12. D) $13. E) $14.

Exam 7: Production Costs

A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:

(Multiple Choice)

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Question 81

If the units of variable input in a production process are 1, 2, 3, 4, and 5, and the corresponding total outputs are 30, 34, 37, 39, and 40, respectively. The marginal product of the fourth unit is:

(Multiple Choice)

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Question 82

Economies of scale imply that within some range one can increase the size of operation and:

(Multiple Choice)

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Question 83

A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because of:

(Multiple Choice)

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Question 84

Exhibit 7-17 Long-run average cost curve -In Exhibit 7-17, economies of scale exist up to:

(Multiple Choice)

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Question 85

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 fixed cost of producing 6 pizzas is shown to be equal to:

(Multiple Choice)

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Question 86

Exhibit 7-9 Cost schedule for firm X Output Quantity Total Fixed Cost Total Variable Cost 0 \ 100 \ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 -As shown in Exhibit 7-9, the marginal cost of producing the third unit is:

(Multiple Choice)

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Question 87

A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs?

(Multiple Choice)

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Question 88

Exhibit 7-15 Long-run average cost -In Exhibit 7-15, diseconomies of scale are shown in the range of:

(Multiple Choice)

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Question 89

Exhibit 7-3 A marginal product curve -As shown in Exhibit 7-3, the marginal product of labor for the last worker hired when 5 workers are employed per day is:

(Multiple Choice)

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Question 90

Exhibit 7-1 Production of pizza data Workers Pizzas 0 0 1 4 2 10 3 15 4 18 5 19 -Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:

(Multiple Choice)

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Question 91

Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land). Its total variable costs are:

(Multiple Choice)

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Question 92

Exhibit 7-3 A marginal product curve -As shown in Exhibit 7-3, the law of diminishing returns applies where there are:

(Multiple Choice)

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Question 93

Marginal cost is calculated by dividing the change in total cost by the change in total output.

(True/False)

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Question 94

Exhibit 7-4 A marginal product curve -As shown in Exhibit 7-4, the law of diminishing returns applies in the range of:

(Multiple Choice)

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Question 95

Exhibit 7-2 Cost schedule for pizza production Pizzas Labor Cost Energy Cost Materials Cost 0 \ 10 \ 0 \ 0 1 10 12 4 2 24 22 8 3 40 30 12 4 60 36 16 5 90 40 20 -Exhibit 7-2 shows the labor, energy, and materials cost of making various quantities of pizzas. The table shows that the energy cost of making pizzas will:

(Multiple Choice)

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Question 96

Exhibit 7-15 Long-run average cost -In Exhibit 7-15, economies of scale exist up to:

(Multiple Choice)

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Question 97

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 marginal cost of the fourth pizza is shown to be equal to:

(Multiple Choice)

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Question 98

Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?

(Multiple Choice)

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Question 99

The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?

(Multiple Choice)

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Question 100

A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:

If the units of variable input in a production process are 1, 2, 3, 4, and 5, and the corresponding total outputs are 30, 34, 37, 39, and 40, respectively. The marginal product of the fourth unit is:

Economies of scale imply that within some range one can increase the size of operation and:

A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because of:

Exhibit 7-17 Long-run average cost curve -In Exhibit 7-17, economies of scale exist up to:

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 fixed cost of producing 6 pizzas is shown to be equal to:

Exhibit 7-9 Cost schedule for firm X Output Quantity Total Fixed Cost Total Variable Cost 0 \ 100 \ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 -As shown in Exhibit 7-9, the marginal cost of producing the third unit is:

Exhibit 7-15 Long-run average cost -In Exhibit 7-15, diseconomies of scale are shown in the range of:

Exhibit 7-3 A marginal product curve -As shown in Exhibit 7-3, the marginal product of labor for the last worker hired when 5 workers are employed per day is:

Exhibit 7-1 Production of pizza data Workers Pizzas 0 0 1 4 2 10 3 15 4 18 5 19 -Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:

Exhibit 7-3 A marginal product curve -As shown in Exhibit 7-3, the law of diminishing returns applies where there are:

Marginal cost is calculated by dividing the change in total cost by the change in total output.

Exhibit 7-4 A marginal product curve -As shown in Exhibit 7-4, the law of diminishing returns applies in the range of:

Exhibit 7-15 Long-run average cost -In Exhibit 7-15, economies of scale exist up 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 marginal cost of the fourth pizza is shown to be equal to:

Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?

The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?

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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