Exam 13: The Costs of Production.

Consider the following information about bread production at Beth's Bakery: Beth pays all her workers the same wage,and labor is her only variable cost.From this information we can conclude that Beth's marginal cost

Table 13-9 -Refer to Table 13-9.What is the variable cost of producing 5 posters?

Figure 13-8 -Refer to Figure 13-8.The efficient scale of production occurs at which quantity?

If a firm uses labor to produce output,the firm's production function depicts the relationship between

Figure 13-10 -Refer to Figure 13-10.The firm experiences diseconomies of scale if it changes its level of output from

Scenario 13-3 Gary is a senior majoring in computer network development at Smart State University. While he has been attending college, Gary started a computer consulting business to help senior citizens set up their network connections and teach them how to use e-mail. Gary charges $25 per hour for his consulting services. Gary also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Gary $20 per hour. -Refer to Scenario 13-3.Which of the following statements is correct?

Scenario 13-6 Tony is a wheat farmer, but he also spends part of his day teaching guitar lessons. Due to the popularity of his local country western band, Farmer Tony has more students requesting lessons than he has time for if he is to also maintain his farming business. Farmer Tony charges $25 an hour for his guitar lessons. One spring day, he spends 10 hours in his fields planting $130 worth of seeds on his farm. He expects that the seeds he planted will yield $300 worth of wheat. -Refer to Scenario 13-6.What is the total opportunity cost of the day that Farmer Tony spent in the field planting wheat?

The things that must be forgone to acquire a good are called

Economists normally assume that the goal of a firm is to

Jacqui decides to open her own business and earns $50,000 in accounting profit the first year.When deciding to open her own business,she turned down three separate job offers with annual salaries of $30,000,$40,000,and $45,000.What is Jacqui's economic profit from running her own business?

Figure 13-10 -Refer to Figure 13-10.The firm experiences constant returns to scale if it changes its level of output from

If marginal cost is below average total cost,then average total cost

The cost of producing an additional unit of output is the firm's

Marginal cost is equal to

A firm has a fixed cost of $500 in its first year of operation.When the firm produces 100 units of output,its total costs are $3,500.When it produces 101 units of output,its total costs are $3,750.What is the marginal cost of producing the 101st unit of output?

Table 13-16 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-16.Firm A is experiencing economies of scale.

Figure 13-2 -Refer to Figure 13-2.As the number of workers increases,

Scenario 13-5 Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000. She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. -Refer to Scenario 13-5.Emily's explicit cost of capital is

Scenario 13-8 Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. -Refer to Scenario 13-8.According to an economist,which of the following revenue totals will yield Ellie's business $50,000 in economic profits?

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