Exam 12: The Firm Production and Costs

Dave recently began running his father's farm. Last year he took in $15,000 in sales revenue and paid $10,200 in out-of-pocket costs. He made an economic loss last year:

Exhibit The table below shows how total cost varies with output in a factory producing watches: ​ -Refer to Exhibit The marginal cost of producing a third watch equals:

Beth recently began running her husband's lumber mill. Last month she took in $5,000 in sales revenue and paid $3,400 in out-of-pocket costs. She made an economic profit last month if her implicit costs were:

Accountants calculate __________ differently than do economists:

A firm is operating at a scale where diseconomies of scale are present. Which of the following could help explain what that means?

Economic profits are equal to accounting profits:

​Exhibit -Refer to Exhibit. The average variable cost curve is the curve labeled:

​Exhibit -Refer to Exhibit. In the short run the firm can move from

If Jason's fixed cost totals $400 with variable cost per unit of $10 at a quantity of 80 units, what would his average total cost at 80 units of output equal?

If Jason's fixed cost totals $800 with variable cost per unit of $10 at a quantity of 80 units, what would his average total cost at 80 units of output equal?

​Exhibit -Refer to Exhibit. For very small output levels, say q₁, costs are lowest with plant size

Accountants do not calculate __________ differently than do economists.

Exhibit -Refer to Exhibit. The total product of labor diminishes with the addition of the ____ picker.

​Figure -In Figure, which plant size is optimal for the firm to produce q_B units of output each week?

Exhibit ​ -Refer to Exhibit. The total product of labor diminishes with the addition of the ____ picker.

Exhibit The table below shows how total cost varies with output in a factory producing watches:​ -Refer to Exhibit. If the output equals five watches per week, the average fixed cost and average variable cost of production equal ____ and ____, respectively.

Exhibit A factory producing DVD players finds that its output varies with the number of workers employed each week in the following way: ​ -Refer to Exhibit. Marginal product begins to diminish with the ____ worker employed.

In the table below, which of the following is not true?

​Exhibit -Refer to Exhibit. The marginal cost curve is the curve labeled:

If there are zero implicit costs, accounting profits _________economic profits.