Exam 11: Technology, Production, and Costs

If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of

Assume that you observe the long-run average cost curve of ACME Bookstores, a national chain.Starting from the point on the curve where output is zero and moving to the right, which of the following lists the behavior of long-run average costs in the correct sequence (that is, which will be observed first, second, etc.)?

Which of the following is the best example of a short-run adjustment?

Economists Cade Massey and Richard Thaler analyzed whether teams in the National Football League distributed salaries efficiently.Massey and Thaler found that

Average variable cost can be calculated using any of the formulas below except

Table 11-3 -Refer to Table 11-3.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.

Which of the following statements is false?

The relationship between the inputs employed by a firm and the maximum output that it can produce with those inputs is the firm's

A change in the slope of an isocost line is due to a change in

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 total cost per day when she produces 50 gyros using two workers?

Figure 11-15 -Refer to Figure 11-15.What is the combination of inputs that produces 200 gooseberry pies at the lowest cost?

Which of the following statements is false?

Table 11-7 Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. -Refer to Table 11-7.What is the average total cost of production when the firm produces 120 lanterns?

State the law of diminishing returns.How do diminishing returns differ from diseconomies of scale? Be sure to define diseconomies of scale in your answer.

Jill Johnson owns a pizzeria.She currently produces 10,000 pizzas per month at a total cost of $500.If she produced one more pizza her total cost rises to $500.11.What does this tell us about Jill's marginal cost of producing pizzas?

In the short run, if average product is at its maximum, then average variable cost is at its minimum.

Higher isocost lines correspond to higher

If a firm decreases its plant size and finds that its long-run average costs have decreased, then

What is the difference between total cost and variable cost in the long run?

Implicit costs can be defined as