Exam 14: Production and Cost

-The table above gives costs at Jan's Bike Shop.Unfortunately,Jan's record keeping has been spotty.Each worker is paid $100 a day.Labor costs are the only variable costs of production.What is the total fixed cost of producing 64 bikes?

At the Punjab Bakery,two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour.The marginal product of the third worker is

Which average cost curves are U-shaped?

The figure above shows some of a firm's cost curves. -Based on the figure above,curve D is the firm's

Jennifer owns a pig farm near Salina,Kansas.Last year she earned $39,000 in total revenue while incurring $38,000 in explicit costs.She could have earned $27,000 as a teacher in Salina.These are all her revenue and costs.Therefore Jennifer earned an

As output increases,average total cost decreases

When the marginal product of an additional worker is less than the marginal product of the previous worker,there are ________ returns to labor.

Downsizing is the practice of laying off workers in an attempt to decrease average total cost.Can laying off workers decrease average total cost? Is it possible for the firm to downsize and have its average total cost increase? Explain your answer.

Because the amount of labor a firm employs can be changed,the cost of labor is known as

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

14.6 Integrative Questions -The table above table shows

If marginal cost increases when output increases,then

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

Total fixed cost is the cost of

The figure above shows some of a firm's cost curves. -Curve A is the firm's

The short run is the time frame

Normal profit is

If 5 workers can wash 30 cars a day and 6 workers can wash 33 cars a day,then the marginal product of the 6th worker equals

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

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?