Exam 6: Production costs

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 $6000 a year.His expenses at the sushi bar would be $50 000 for food and $2000 for gas and electricity.What are his explicit costs?

Which of the following statements is not true?

Costs that do not vary as output varies and that must be paid even if output is zero are called total fixed costs.

Average total cost is:

Different scales of production Exhibit 6-9 Cost curves -In Exhibit 6-9,economies of scale only exist for output levels up to:

In the long run,total fixed cost:

Which of the following statements is possible?

The marginal cost:

Exhibit 6-8 Cost schedule for producing pizzas -By filling in the blanks in Exhibit 6-8,the AVC of 4 pizzas is shown to be equal to:

Exhibit 6-3 A marginal product curve -As shown in Exhibit 6-3,the law of diminishing returns applies where there are:

If ATC = $10,AVC = $6,AFC = $3 and MC = $5,then if output increased by one unit:

As output increases:

Exhibit 6-2 Production of pizza data -Exhibit 6-2 shows the change in the production of pizzas as more workers are hired.The marginal product of the labour input begins to fall with the employment of the _____ worker.

Exhibit 6-6 Cost schedule for firm X -As shown in Exhibit 6-6,the marginal cost of producing the fourth unit is:

Exhibit 6-8 Cost schedule for producing pizzas -By filling in the blanks in Exhibit 6-8,the ATC of 3 pizzas is shown to be equal to:

One season is a short run because:

Which of the following statements is true?

Suppose the cost to produce an additional unit of output is $20.What is the change in total variable cost?

The _____ is the situation in which the marginal product of labour is greater than zero and declining as more labour is hired.

Marginal product can be: