Exam 13: The Costs of Production

A firm has a fixed cost of $200 in its first year of operation.When the firm produces 99 units of output,its total costs are $4,000.The marginal cost of producing the 100th unit of output is $700.What is the total cost of producing 100 units?

Table 13-5 The Flying Elvis Copter Rides -Refer to Table 13-5.What is the value of B?

Figure 13-6 -Refer to Figure 13-6.Which of the figures represents the marginal cost curve for a firm?

As a firm moves along its long-run average cost curve,it is adjusting the size of its factory to the quantity of production.

Scenario 13-3 Tony is a wheat farmer,but he also spends part of his day teaching guitar lessons.Due to the popularity of his local country western band,Farmer Tony has more students requesting lessons than he has time for if he is to also maintain his farming business.Farmer Tony charges $25 an hour for his guitar lessons.One spring day,he spends 10 hours in his fields planting $130 worth of seeds on his farm.He expects that the seeds he planted will yield $300 worth of wheat. -Refer to Scenario 13-3.Tony's economic profit equals

Table 13-3 -Refer to Table 13-3.What is total output when 3 workers are hired?

If Kelsey sells 300 glasses of lemonade at $0.50 each,her total revenues are

Marginal cost is equal to average total cost when

Marginal costs are costs that do not vary with the quantity of output produced.

Table 13-1 Alyson's Pet Sitting Service -Refer to Table 13-1.What is the marginal product of the second worker?

Accountants keep track of the money that flows into and out of firms.

Diseconomies of scale occur when

Average total cost is very high when a small amount of output is produced because

Figure 13-3 -Refer to Figure 13-3.Which of the following statements best captures the nature of the underlying production function?

Table 13-7 -Refer to Table 13-7.The average total cost of producing one widget is

Which of the following statements is correct?

The nature of a firm's cost (fixed or variable)depends on the

Table 13-12 Listed in the table are the long-run total costs for three different firms. -Refer to Table 13-12.Which firm is experiencing diseconomies of scale?

Table 13-5 The Flying Elvis Copter Rides -Refer to Table 13-5.What is the value of A?

The amount of money that a firm receives from the sale of its output is called