Exam 14: Production and Cost

Suppose Billy owns a hair salon in Dallas.He has one large hair dryer for which he paid $1,000.If he can sell the dryer one year later for $800,his total economic depreciation equals

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average variable cost of producing 1,000 frijoles?

If a firm does not produce any output,its

-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 total cost equals

Diseconomies of scale is

The long-run average cost curve is U-shaped because of which of the following?

Suppose the local newspaper hires students to fold and bag newspapers for delivery and pays them $20 per shift.Five students can fold and bag 300 newspapers per shift.The fourth student added 50 newspapers to total output.The cost of the capital the firm uses is fixed at $50 per shift. a.Is the newspaper operating in the long run or short run? Why? b.What is the average product of 5 students? c.Calculate the total fixed,total variable,and total costs of folding and bagging 300 newspapers. d.Calculate the average fixed,average variable,and average total costs of folding and bagging 300 newspapers. e.What is the marginal cost of one of the 50 newspapers folded and bagged by the fourth student?

A firm's fundamental goal is

The paramount goal of a firm is to

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 table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The total cost of producing 80 units equals

To produce 10 shirts,the total cost is $80; to produce 11 shirts,the total cost is $99.The average total cost of the 11th shirt is equal to

A normal profit is defined as

In the long run,

In the long run,

-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 fixed cost equals

Accountants calculate

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

Lauren runs a chili restaurant in San Francisco.Her total revenue last year equaled $111,000.The rent on her restaurant totaled $48,000.Her labor costs totaled $43,000.Her materials,food and other variable costs totaled $19,000.To Lauren's accountant,Lauren

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average total cost of producing 80 units equals ________ per unit.