Exam 14: Production and Cost

Lauren runs a chili restaurant in San Francisco.Her total revenue last year was $110,000.The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were $20,000.Lauren could have worked as a biologist and earned $50,000 per year.An economist calculates her implicit costs as

The marginal cost curve intersects the ________ curves at their ________ points.

Moving along the total product curve, which of the following is held constant?

Average total cost equals

In the long run,

As output increases, economies of scale occur when the

If we know the amount of total cost, average total cost, average variable cost, and marginal cost for each level of output, how can we find the level of output where the marginal product is the greatest?

-The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

In a graph of a typical firm's AFC, ATC, and AVC curves, the

Suppose Billy owns a hair salon in Dallas.He has one large hair dryer for which he paid $1,000.If he can sell the dryer one year later for $800, his total economic depreciation equals

-The table above shows the total product schedule for Rick's Lawn Service, a yard care company.The average product of labor ________ when the 7th worker is hired.

Lauren runs a chili restaurant in San Francisco.Her total revenue last year equaled $111,000.The rent on her restaurant totaled $48,000.Her labor costs totaled $43,000.Her materials, food and other variable costs totaled $19,000.To Lauren's accountant, Lauren

When the marginal product of an additional worker is less than the marginal product of the previous worker, there are ________ returns to labor.

-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 cost of producing 50 bikes?

When the Rent-A-Limo Company negotiates its new labor contract it finds that the wages it must pay drivers have increased.How does this wage hike affect the Rent-A-Limo Company's average fixed cost, average variable cost, average total cost, and marginal cost?

-In the above figure, curve A is the ________ curve and curve B is the ________ curve.

When the slope of the total product curve is steep, the marginal product is

John fishes for a living.Last year, he sold $100,000 of fish.Bait, nets and other fishing supplies cost John $10,000 and he paid $40,000 in salaries to his helpers.Depreciation on his boat and other equipment, as calculated using IRS rules, was $15,000.What was John's profit as would be calculated by an accountant?

Which of the following is a list of fixed inputs for a hospital?

At the Punjab Bakery, two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour.The marginal product of the third worker is