Exam 11: Output and Costs

-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC₁), Plant 2 (ATC₂), Plant 3 (ATC₃), and Plant 4 (ATC₄). Dustin's minimum efficient scale is

-In the above figure, the intersection of curves A and B is the point at which

-If total fixed cost increases, then the average total cost curve ________ and the marginal cost curve ________.

The output at which average product is a maximum is the same output at which ________ is a minimum.

If marginal cost is less than average total cost, then ________ is ________.

-The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labor costs are the only variable costs of production)?

-In the above figure, the most efficient way to produce 15 units is to hire

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average variable cost of producing 10 baseball hats per hour is

-The above (incomplete) table provides information about the relationships between labor and various product measures. The total product that can be produced with 6 units of labor is

When the marginal product of labor is a maximum, the average product of labor is ________.

-Using the data in the above table, the average fixed cost of producing 16 units is

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's kitchen currently has enough room for only one oven. If Silvio employs 3 workers, producing 200 pizzas per week is ________ in the short run and ________ in the long run.

-Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above. Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. What is Silvio's long-run average cost if the output is 100 pizzas per week?

A firm's average total cost is $80, its fixed cost is $1000, and its output is 100 units. Its average variable cost

-The above figure shows the costs at Barney's Bagel Bakery. At which of the following amounts of output is the AFC be the lowest?

All the production points that lie ________ the total product curve are attainable and ________.

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, the relationship between costs indicates that the distance between curves

When a firm experiences economies of scale, its ________ cost curve slopes ________ as output increases.

The short run is a period of time in which