Exam 6: Sellers and Incentives

The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm. -Refer to the table above.What is the firm's marginal cost per unit of output when it produces the 55th unit of the good?

The following figure shows the supply curve of a firm that manufactures shoes. -Refer to the figure above.What is the producer surplus when the price is $70?

The change in the total output of a firm associated with using one more unit of an input is referred to as the ________.

In a perfectly competitive market,all firms in the long run earn ________.

The following table shows the total output produced by different numbers of workers in a shoe factory. -Refer to the table above.What is the marginal product of the sixth worker?

If the market for bottled water is perfectly competitive,how will the following aspects differ in the short run and in the long run? a)The use of inputs b)The market supply curve of bottled water when firms have identical cost structures c)The profitability of firms with identical cost structures earning economic profits d)Condition to stop production e)The average cost curves of a firm f)The number of firms

The process by which inputs are transformed to outputs is referred to as ________.

Which of the following costs is an example of a sunk cost?

The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use. -Refer to the figure above.Between the output quantity QA and QC,the long-run average total cost curve of the firm exhibits ________.

The following table shows the total output, variable costs, fixed costs, total costs, average total costs, and marginal costs of a firm, with some cells in the table intentionally left blank. -Refer to the table above.What is the average total cost of producing 5 units of output?

Suppose ethanol is produced in a perfectly competitive market.If a subsidy is paid to ethanol producers,the number of producers in this market will ________ in the long run.

Which of the following statements is true?

Differentiate between perfectly elastic supply and perfectly inelastic supply.

A firm is said to be a price taker if it ________.

A firm produced 376 units with ten workers.When an eleventh worker was hired,the output increased to 398 units.The marginal product of the eleventh worker is ________.

Scenario: A car repair shop hires workers and pays them the federal minimum wage of $7.25. The following table shows the marginal returns to each worker in terms of number of cars repaired. -Refer to the scenario above.In addition,suppose the fixed cost of operating this shop is $1,000 per day.If 3 workers are hired at the federal minimum wage of $7.25,what is the total cost of this shop?

Scenario: Selma runs a pastry shop. The following table shows the total number of cupcakes produced as a function of the number of hours of labor put into making them. -Refer to the scenario above.The "specialization" effect in this production process is observed when the ________ hour of labor is employed.

Scenario: Selma runs a pastry shop. The following table shows the total number of cupcakes produced as a function of the number of hours of labor put into making them. -Refer to the scenario above.What is the marginal product of the third hour of labor?

A good is said to have an elastic supply if its price elasticity of supply is ________.

Scenario: Selma runs a pastry shop. The following table shows the total number of cupcakes produced as a function of the number of hours of labor put into making them. -Refer to the scenario above.What is the marginal product of the fifth hour of labor?