Exam 11: The Firm: Production and Costs

A firm's total product of labor curve is represented by the following data: 1 worker can produce 4 units of output; 2 workers,10 units; 3 workers,17 units; 4 workers,25 units; 5 workers,30 units; 6 workers,35 units; 7 workers,38 units; 8 workers,39 units; and 9 workers,38 units.What is the marginal product of the seventh worker? When does the law of diminishing marginal product set in? Under these circumstances would you ever choose to employ nine workers?

The range in which there is diminishing marginal productivity starts at the point where:

Which of the following cost curves is not generally U-shaped?

Ray Tucker has run his company,Tucker's Towing and Wrecking,for two years and has made an accounting profit of $34,000 each year.As long as Tucker's Towing continues to make accounting profits,it is rational to remain in the towing business.

When marginal cost is increasing,average total cost must be increasing.

Which of the following is consistent with diminishing marginal product?

Exhibit 11-11 Refer to Exhibit 11-11.Point A refers to:

Economic profits are:

The change in total cost resulting from a one-unit increase in production is called:

Which of the following observations is true?

Diseconomies of scale are associated with:

How short is the short-run production period?

A firm replaces a machine by hiring 3 hourly production workers instead.

Exhibit 11-10 Refer to Exhibit 11-10.How long does it take a firm to get to the long run?

Diminishing marginal product of labor occurs when:

If Randy's fixed cost totals $800 with variable cost per unit of $10 at a quantity of 100 units,what would his average total cost equal?

If average total cost equals $15 at 20 units of output and average total cost equals $15 at 21 units of output,then the marginal cost of the 21^st unit is ____.

Which of the following must be true if the short-run average total cost curve is declining?

If AVC is subtracted from the ATC,the result is:

An explicit cost is: