Exam 13: The Costs of Production

Table 13-13 Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. -Refer to Table 13-13. How many instructional modules are produced when marginal cost is $1,300?

When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases.

Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-9. The firm experiences constant returns to scale at which output levels?

Table 13-9 -Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its average-variable-cost curve is

Table 13-1 -Refer to Table 13-1. What is total output when 2 workers are hired?

For a firm, the production function represents the relationship between

When a factory is operating in the short run,

Which of the following expressions is correct?

Table 13-19 -Refer to Table 13-19. What is the marginal product of the sixth worker?

Which of the following statements about a production function is correct for a firm that uses labor to produce output?

Table 13-8 -Refer to Table 13-8. What is the shape of the marginal cost curve for this firm?

Variable cost divided by quantity produced is

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

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

Table 13-19 -Refer to Table 13-19. What is the average total cost of producing 425 units of output?

Foregone investment opportunities are an example of

The marginal-cost curve intersects the average-total-cost curve at the minimum point of the average-total-cost curve.

In the long run, when marginal cost is above average total cost, the average total cost curve exhibits

Scenario 13-8 Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. -Refer to Scenario 13-8. What are Wanda's total economic costs per glass?

Table 13-19 -Refer to Table 13-19. What is the shape of the average-total-cost curve?