Exam 14: Production and Cost

Quantity of labor (workers) Total product (dogs groomed per week) 0 0 1 40 2 100 3 150 4 190 5 220 6 240 -Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average total cost equals

Which of the following is an example of an implicit cost?

In a graph of a typical firm's AFC,ATC,and AVC curves,the

Quantity of labor (workers) Total product (lawns mowed per hour) 0 0 1 2 2 5 3 8 4 15 5 22 6 26 7 28 -The table above shows the total product schedule for Rick's Lawn Service,a yard care company.The average product of labor ________ when the 7th worker is hired.

Suppose that a firm earned $500,000 in total revenue.At the same time,it incurred labor costs of $200,000; economic depreciation of $50,000; normal profit of $75,000; interest paid to the bank of $25,000; and used other factors of production that cost $100,000.The economic profit earned by the firm equals

The marginal cost curve is U-shaped.Over the range of output for which the marginal cost is falling as output increases,the marginal product is

The relationship between the MP and MC curves is

In the long run,constant returns to scale necessarily occur when the firm increases its production and the firm's

Quantity of labor (workers) Total product (dogs groomed per week) 0 0 1 40 2 100 3 150 4 190 5 220 6 240 -Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 2 workers,her average fixed cost equals

What do economists mean when they say that a firm's plant is fixed?

What are diseconomies of scale and why might they occur?

When plotted against the total output,what does the total fixed cost curve look like?

If a business owner decided to expand her business but rather than borrowing money from a bank used her own funds,then

Normal profit is

Output (pizzas per hour) Total cost (dollars) 0 20 1 35 2 49 3 61 4 71 5 79 6 85 -Paulette owns a pizza parlor.Her total cost schedule is in the above table.Her total variable cost of producing four pizzas per hour is

Total product Quantity of labor (workers) (lawns mowed per day) 0 0 1 3 2 8 3 15 4 20 5 21 -The above table has the total product schedule for Jesse's Lawn Service. a.In the figure,label the axes and then graph the total product curve. b.Find the average product for the different amounts of employment.

Diseconomies of scale can occur as a result of which of the following?

The primary goal of a business firm is to

Chuck owns a factory that produces leather footballs.His total fixed cost equaled $86,000 last year.His total cost equaled $286,000 last year.Hence Chuck's

The figure above shows a firm's total product curve. -Which of the points show efficient production points?