Exam 8: Technology,Production,and Costs

The ABC Company manufactures routers that are used to provide high-speed Internet service.ABC sells an average of 1,000 routers each month,but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month.Therefore

Average fixed cost is equal to

If a firm experiences positive technological change,it is able to produce more output using the same inputs.

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

If a firm is producing no output in the short run,then its total costs are zero.

State the law of diminishing marginal returns.

Over the past twenty years,the number of small family farms has fallen significantly and in their place there are fewer,but larger,farms owned by corporations.Which of the following best explains this trend?

Figure 8-6 Figure 8-6 contains information about the short run cost structure of a firm. -Refer to Figure 8-6.In the figure above,which letter represents the average variable cost curve?

Which of the following statements is false?

When a firm's long-run average cost curve is horizontal for a range of output,then that range of production displays

The explicit cost of production is also called

Which of the following statements is false?

If average total cost is $50 and average fixed cost is $15 when output is 20 units,then the firm's total variable cost at that level of output is

Marginal cost is calculated for a particular increase in output by

Which of the following statements is true?

As the level of output increases,what happens to the value of average fixed cost,and what happens to the difference between the value of average total cost and average variable cost?

Economies of scale exist as a firm increases its size in the long run because of all of the following except

If,when a firm doubles all its inputs,its average cost of production increases,then production displays

Marginal cost is the

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