\[\begin{array} { c c } \begin{array} { c } \text { Quantity of labor } \\ \text { (workers) } \end{array} & \begin{array} { c } \text { Total product } \\ \text { (lawns mowed per hour) } \end{array} \\ \hline 0 & 0 \\ 1 & 2 \\ 2 & 5 \\ 3 & 8 \\ 4 & 15 \\ 5 & 22 \\ 6 & 26 \\ 7 & 28 \end{array}\] -The table above shows the total product schedule for Rick's Lawn Service, a yard care company. Increasing marginal returns

A) end when the fourth worker is hired. B) occur at all levels of employment. C) occur as long as output increases. D) end when the second worker is hired. E) never occur. A) end when the fourth worker is hired. B) occur at all levels of employment. C) occur as long as output increases. D) end when the second worker is hired. E) never occur.

\[\begin{array} { c c } \begin{array} { c } \text { Quantity of labor } \\ \text { (workers) } \end{array} & \begin{array} { c } \text { Total product } \\ \text { (lawns mowed per hour) } \end{array} \\ \hline 0 & 0 \\ 1 & 2 \\ 2 & 5 \\ 3 & 8 \\ 4 & 15 \\ 5 & 22 \\ 6 & 26 \\ 7 & 28 \end{array}\] -The table above shows the total product schedule for Rick's Lawn Service, a yard care company. When does the average product of labor equal the marginal product of labor?

A) between the 4th and 5th workers B) at the 5th worker C) between the 5th and 6th workers D) between the 6th and 7th workers E) between 0 workers and the 3rd worker A) between the 4th and 5th workers B) at the 5th worker C) between the 5th and 6th workers D) between the 6th and 7th workers E) between 0 workers and the 3rd worker

\[\begin{array} { c c } \begin{array} { c } \text { Quantity of labor } \\ \text { (workers) } \end{array} & \begin{array} { c } \text { Total product } \\ \text { (hair stylings per day) } \end{array} \\ \hline 0 & 0 \\ 1 & 10 \\ 2 & 25 \\ 3 & 45 \\ 4 & 60 \\ 5 & 70 \\ \hline \end{array}\] -Which of the following is correct about marginal and average products?

A) When the marginal product is increasing, the average product must be increasing. B) When the marginal product exceeds the average product, the average product must be increasing. C) When the average product is increasing, the marginal product must be decreasing. D) When the marginal product is decreasing, the average product must be decreasing. E) When the marginal product is increasing, the average product must be decreasing. A) When the marginal product is increasing, the average product must be increasing. B) When the marginal product exceeds the average product, the average product must be increasing. C) When the average product is increasing, the marginal product must be decreasing. D) When the marginal product is decreasing, the average product must be decreasing. E) When the marginal product is increasing, the average product must be decreasing.

\[\begin{array} { c c } \begin{array} { c } \text { Output } \\ \text { (pizzas per hour) } \end{array} & \begin{array} { c } \text { Total cost } \\ \text { (dollars) } \end{array} \\ \hline 0 & 20 \\ 1 & 35 \\ 2 & 49 \\ 3 & 61 \\ 4 & 71 \\ 5 & 79 \\ 6 & 85 \end{array}\] -Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to

A) $20. B) $35. C) $79. D) $85. E) Some amount but more information is needed to determine her fixed cost. A) $20. B) $35. C) $79. D) $85. E) Some amount but more information is needed to determine her fixed cost.

Exam 10: Production and Cost

Quantity of labor (workers) Total product (lawns mowed per hour) 0 0 1 2 2 5 3 8 4 15 5 22 6 26 7 28 -The table above shows the total product schedule for Rick's Lawn Service, a yard care company. Increasing marginal returns

(Multiple Choice)

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Question 21

Scott owns a law-enforcement training operation in Boise, Idaho. He employs three trainers. The last trainer Scott hired increased Scott's total cost by $466 per week even though the trainer brought in only one new client. Hence Scott's

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Question 22

________ cost is defined as a cost of production that does not entail a direct money payment.

(Multiple Choice)

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Question 23

Cost curves shift if i. technology changes. Ii. the prices of factors of production change. Iii. productivity changes.

(Multiple Choice)

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Question 24

Decreasing marginal returns

(Multiple Choice)

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Question 25

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

(Multiple Choice)

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Question 26

Quantity of labor (workers) Total product (lawns mowed per hour) 0 0 1 2 2 5 3 8 4 15 5 22 6 26 7 28 -The table above shows the total product schedule for Rick's Lawn Service, a yard care company. When does the average product of labor equal the marginal product of labor?

(Multiple Choice)

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Question 27

The law of decreasing returns states that as a firm uses more of a

(Multiple Choice)

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Question 28

As output increases, average total cost decreases

(Multiple Choice)

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Question 29

The main source of economies of scale is

(Multiple Choice)

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Question 30

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?

(Essay)

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Question 31

Marginal product equals

(Multiple Choice)

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Question 32

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

(Multiple Choice)

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Question 33

The opportunity cost of a firm using its own capital is

(Multiple Choice)

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Question 34

Because the amount of labor a firm employs can be changed, the cost of labor is known as

(Multiple Choice)

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Question 35

Quantity of labor (workers) Total product (hair stylings per day) 0 0 1 10 2 25 3 45 4 60 5 70 -Which of the following is correct about marginal and average products?

(Multiple Choice)

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Question 36

Suppose the local newspaper hires students to fold and bag newspapers for delivery and pays them $20 per shift. Five students can fold and bag 300 newspapers per shift. The fourth student added 50 newspapers to total output. The cost of the capital the firm uses is fixed at $50 per shift. a. Is the newspaper operating in the long run or short run? Why? b. What is the average product of 5 students? c. Calculate the total fixed, total variable, and total costs of folding and bagging 300 newspapers. d. Calculate the average fixed, average variable, and average total costs of folding and bagging 300 newspapers. e. What is the marginal cost of one of the 50 newspapers folded and bagged by the fourth student?

(Essay)

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Question 37

Output (pizzas per hour) Total cost (dollars) 0 20 1 35 2 49 3 61 4 71 5 79 6 85 -Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to

(Multiple Choice)

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Question 38

Curve C is the firm's

(Multiple Choice)

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Question 39

Once production has reached the maximum average product of labor, if production increases then

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Question 40

Quantity of labor (workers) Total product (lawns mowed per hour) 0 0 1 2 2 5 3 8 4 15 5 22 6 26 7 28 -The table above shows the total product schedule for Rick's Lawn Service, a yard care company. Increasing marginal returns

Scott owns a law-enforcement training operation in Boise, Idaho. He employs three trainers. The last trainer Scott hired increased Scott's total cost by $466 per week even though the trainer brought in only one new client. Hence Scott's

________ cost is defined as a cost of production that does not entail a direct money payment.

Cost curves shift if i. technology changes. Ii. the prices of factors of production change. Iii. productivity changes.

Decreasing marginal returns

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

Quantity of labor (workers) Total product (lawns mowed per hour) 0 0 1 2 2 5 3 8 4 15 5 22 6 26 7 28 -The table above shows the total product schedule for Rick's Lawn Service, a yard care company. When does the average product of labor equal the marginal product of labor?

The law of decreasing returns states that as a firm uses more of a

As output increases, average total cost decreases

The main source of economies of scale is

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?

Marginal product equals

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

The opportunity cost of a firm using its own capital is

Because the amount of labor a firm employs can be changed, the cost of labor is known as

Quantity of labor (workers) Total product (hair stylings per day) 0 0 1 10 2 25 3 45 4 60 5 70 -Which of the following is correct about marginal and average products?

Output (pizzas per hour) Total cost (dollars) 0 20 1 35 2 49 3 61 4 71 5 79 6 85 -Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to

Curve C is the firm's

Once production has reached the maximum average product of labor, if production increases then

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

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