Exam 14: Production and Cost

The figure above shows a firm's average total cost and marginal cost curves. -Based on the figure above, the firm's marginal product curve slopes upward at levels of output between ________ and the firm's average product curve slopes upward at levels of output between ________.

Diseconomies of scale is

The relationship between the MP and MC curves is

The long run average cost curve

If 9 workers can produce 1,550 units of output and 10 workers can produce 1,700 units of output, then the marginal product of the 10th worker is

Which of the following variables do you need to know to calculate marginal cost? i. change in total cost ii. marginal product of labor iii. change in quantity of labor used iv. change in output

Average total cost is equal to

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

Suppose that a firm earned $500,000 in total revenue.At the same time, it incurred labor costs of $200,000; economic depreciation of $50,000; normal profit of $75,000; interest paid to the bank of $25,000; and used other factors of production that cost $100,000.The economic profit earned by the firm equals

The cost that does not change as output changes is

Draw an average total cost curve, an average variable cost, and a marginal cost curve all on the same graph.Make sure to correctly label the axes.What relationship must exist between the marginal cost curve and the average total cost and average variable cost curves?

If another worker is hired with a marginal product greater than the previously hired worker, which of the following will be true?

Which of the following statements correctly describes a total product curve?

-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 variable cost of producing 60 bikes?

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

For a business, opportunity cost measures

Darryl runs a ranch in Jackson, Wyoming.The interest on the debt he incurred to buy his ranch totals $3,000 per year.For Darryl, the interest is

Total cost is equal to the sum of

A firm increases its output and its average total costs remain unchanged.Is the firm experiencing increasing returns to scale, constant returns to scale, or decreasing returns to scale?

A firm pays $50,000 for a machine that is used in production for one year, after which it is sold for $40,000 to another firm.The $10,000 difference is