Exam 8: Technology, production, and Costs

Table 8-7 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 8-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. -Refer to Table 8-7.What is the average variable cost per unit of production when the firm produces 90 lanterns?

A downward sloping marginal product of labor curve demonstrates the law of diminishing marginal returns.

In economics,what is the difference between the short run and the long run?

Table 8-3 Quantity of Workers Quantity of Boxes Marginal Product of Labor Average Product of Labor 0 0 \@cdots \@cdots 1 50 2 200 3 240 4 264 5 284 -Refer to Table 8-3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.The highest value of the average product is labor is ________ when Manny hires ________ workers.

If we have information about workers' marginal products,then total and average product can be found by

If the 15th unit of output has a marginal cost of $29.50 and the average cost of producing 14 units of output is $30.23,what will happen to the average cost of production if the 15th unit is produced?

Average total cost is

Marginal cost is equal to the

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.Calculate Vipsana's variable cost per day when she produces 50 gyros using two workers?

Use the general relationship between marginal and average values to explain why a marginal cost curve must intersect an average total cost curve and an average variable cost curve at their minimum points.

All of the following statements are true of the minimum efficient scale except one.Which one?

Figure 8-2 -Refer to Figure 8-2.The curve labeled "F" is

Which of the following can a firm do in the long run but not in the short run?

In the long run the relevant cost is total cost.

Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s.Bill took out a loan from his bank to pay for his store and its initial inventory.Bill pays the bank $900 per week for his loan.The $900 bank payment

Which of the following are examples of a firm experiencing a positive technological change? a.A firm is able to reduce its inputs by 15 percent and still produce the same level of output. b.A seminar attended by the firm's workers makes them more productive. c.A firm adds 5 percent to its workforce and is able to maintain its initial level of output. d.A firm restructures its distribution system and is able to save on its shipping times. e.A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level.

Which of the following is an implicit cost of production?

If the average variable cost curve is above the marginal cost curve,then

Table 8-3 Quantity of Workers Quantity of Boxes Marginal Product of Labor Average Product of Labor 0 0 \@cdots \@cdots 1 50 2 200 3 240 4 264 5 284 -Refer to Table 8-3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.The average product of labor will equal 60 boxes when Manny hires

The Santa Fe Spark Plug Company supplies spark plugs to automotive parts dealers.An increase in the demand for its product led Santa Fe to hire 150 new workers.Santa Fe also plans to expand the capacity of its plant but this project will take 2 years to complete.Which of the following statements is true?