Table 9.3 $\begin{array}{|c|c|c|c|c|} \hline \begin{array}{c} \text { Quantity of } \\ \text { Lanterns } \end{array} & \begin{array}{c} \text { Fixed Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Variable Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Total Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Average Total Cost } \\ \text { (dollars) } \end{array} \\ \hline 75 & 200 & 170 & 370 & 4.93 \\ \hline 80 & 200 & 230 & 430 & 5.36 \\ \hline 90 & 200 & & & 7.67 \\ \hline 100 & 200 & 810 & & \\ \hline 115 & 200 & & & 11.8 \\ \hline 117 & 200 & 1264 & 1464 &12.5 \\ \hline 120 & 200 & 1480 & & \\ \hline \end{array}$ Table 9.3 shows cost data for Lotus Lanterns, a producer of whimsical night lights. -Refer to Table 9.3.What is the marginal cost per unit of production when the firm produces 100 lanterns?

A) $420 B) $32 C) $11.1 D) $8.1 A) $420 B) $32 C) $11.1 D) $8.1

Exam 9: Technology, Production, and Costs

Vipsana's Gyros House sells gyros.The cost of ingredients (pita, meat, spices, etc.)to make a gyro is $2.00.Vipsana pays her employees $60 per day.She also incurs a fixed cost of $120 per day.What is Vipsana's total cost per day when she does not produce any gyros and does not hire any workers?

(Multiple Choice)

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(86)

Question 41

Suppose a chain of convenience stores reorganized its system of supplying its stores with food.This led to a sharp reduction in the number of trucks that the company had to use and increased the amount of fresh food on store shelves.Which of the following statements best describes the chain stores' actions?

(Multiple Choice)

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Question 42

Figure 9.1 -Refer to Figure 9.1.In a diagram that shows the marginal product of labour on the vertical axis and labour on the horizontal axis, the marginal product curve

(Multiple Choice)

5.0/5

(81)

Question 43

If, after hiring the 6th worker, a firm's output falls, then the marginal product of the 6th worker is negative.

(True/False)

4.9/5

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Question 44

Table 9.3 Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) 75 200 170 370 4.93 80 200 230 430 5.36 90 200 7.67 100 200 810 115 200 11.8 117 200 1264 1464 12.5 120 200 1480 Table 9.3 shows cost data for Lotus Lanterns, a producer of whimsical night lights. -Refer to Table 9.3.What is the marginal cost per unit of production when the firm produces 100 lanterns?

(Multiple Choice)

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Question 45

In the short run, if marginal product is below average product, then average variable cost is increasing.

(True/False)

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Question 46

At the minimum efficient scale,

(Multiple Choice)

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Question 47

If diminishing marginal returns have already set in for Golden Lark Woodworks, and the marginal product of the 6th carpenter is 8 chairs, then the marginal product of the 7th carpenter is

(Multiple Choice)

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Question 48

Is it possible for average total cost to be decreasing over a range of output where marginal cost is increasing? Briefly explain.

(Essay)

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Question 49

Figure 9.1 -Refer to Figure 9.1.Diminishing marginal productivity sets in after

(Multiple Choice)

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Question 50

Figure 9.6 -Refer to Figure 9.6.Which of the following statements about the input combinations shown in the diagram is false?

(Multiple Choice)

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Question 51

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays

(Multiple Choice)

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Question 52

Which of the following is an implicit cost of production?

(Multiple Choice)

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Question 53

Golda Rush quit her job as a manager for Rona to start her own hair dressing salon, Goldilocks.She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest)and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year.In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 on equipment and hairdressing material.Based on this information, what is the amount of her implicit costs?

(Multiple Choice)

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Question 54

Figure 9.4 -Refer to Figure 9.4.Identify the curves in the diagram.

(Multiple Choice)

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Question 55

Figure 9.1 -Refer to Figure 9.1.The average product of the 4th worker

(Multiple Choice)

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Question 56

Figure 9.7 -Refer to Figure 9.7.The lines shown in the diagram are isocost lines.A movement from CE to BD occurs when

(Multiple Choice)

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Question 57

Assume that Telus initially does not sell enough mobile phone packages to realize economies of scale.To reach economies of scale, Telus must

(Multiple Choice)

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Question 58

As the level of output increases, what happens to the value of average fixed cost, and what happens to the difference between the value of average total cost and average variable cost?

(Essay)

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Question 59

If a firm experiences positive technological change, it is able to produce more output using the same inputs.

(True/False)

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Question 60

Showing 41 - 60 of 169

Vipsana's Gyros House sells gyros.The cost of ingredients (pita, meat, spices, etc.)to make a gyro is $2.00.Vipsana pays her employees $60 per day.She also incurs a fixed cost of $120 per day.What is Vipsana's total cost per day when she does not produce any gyros and does not hire any workers?

Figure 9.1 -Refer to Figure 9.1.In a diagram that shows the marginal product of labour on the vertical axis and labour on the horizontal axis, the marginal product curve

If, after hiring the 6th worker, a firm's output falls, then the marginal product of the 6th worker is negative.

In the short run, if marginal product is below average product, then average variable cost is increasing.

At the minimum efficient scale,

If diminishing marginal returns have already set in for Golden Lark Woodworks, and the marginal product of the 6th carpenter is 8 chairs, then the marginal product of the 7th carpenter is

Is it possible for average total cost to be decreasing over a range of output where marginal cost is increasing? Briefly explain.

Figure 9.1 -Refer to Figure 9.1.Diminishing marginal productivity sets in after

Figure 9.6 -Refer to Figure 9.6.Which of the following statements about the input combinations shown in the diagram is false?

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays

Which of the following is an implicit cost of production?

Figure 9.4 -Refer to Figure 9.4.Identify the curves in the diagram.

Figure 9.1 -Refer to Figure 9.1.The average product of the 4th worker

Figure 9.7 -Refer to Figure 9.7.The lines shown in the diagram are isocost lines.A movement from CE to BD occurs when

Assume that Telus initially does not sell enough mobile phone packages to realize economies of scale.To reach economies of scale, Telus must

As the level of output increases, what happens to the value of average fixed cost, and what happens to the difference between the value of average total cost and average variable cost?

If a firm experiences positive technological change, it is able to produce more output using the same inputs.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

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