Exam 11: Output and Costs

-In the above figure, the average variable cost curve is curve

Cost schedule -Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is

-In the above figure, a technologically inefficient point is

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. If Silvio's uses Plant 1, the marginal product of the 3rd worker is ________ pizzas per week.

-The above table shows the total product of producing baseball hats. The average product of 3 workers is equal to

-In the above figure, the maximum number of units that 4 workers can produce is

After constructing a new factory, the cost of building the factory is a

The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the

The long run is a period of time in which

-The above table shows some cost data for Tracey's Tents. What is the marginal cost of the 3rd tent?

In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a $1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas. The company also planned to add some $400,000 in new equipment and triple its Yoder work force. Which of Precision Pattern Interiors' decisions is a short run decision?

In a diagram with the total cost curve and the total variable cost curve, as output increases, the vertical distance between these two curves

In the long run, a firm can vary

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The total fixed cost of producing 10 baseball hats per hour is

A firm's total product curve shows

If total fixed cost increases, then the average total cost curve ________ and the marginal cost curve ________.

If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________.

-In the figure above, curve C is the ________ curve.

-The above table gives some of the costs of the Delicious Pie Company. What is the average total cost of producing 200 pies?

-In the above figure, the most efficient way to produce 10 units is to hire