Exam 4: Firm Production, Cost, and Revenue

The source of diminishing returns is

Suppose you are deciding whether or not to increase production. You are currently making a profit. If you produce one more unit your increase in cost will be $10, your average variable costs will increase to less than that and your average fixed costs will decrease. Finally, your average revenue will increase to $12, but your increase in revenue will be $14. You should

If the price is less than the average variable cost then

Which of the following algebraic expressions is inaccurate

When you derive the marginal product of labor curve you use

Given the production function and total cost function shown in Chapter 4, as production increases, marginal costs

In the derivation of AVC, to find its minimum you need

-Refer to Table 4.2, Box R should be filled with

-Refer to Table 4.2, Box H should be filled with

When the firm is a price taker, at the quantity where profit is maximized

Suppose a lawn-mowing business has a mower for which it paid $1000 and workers for which they pay $10 per hour. Suppose each mower can mow a lawn per hour.

Given the production function and total cost function shown in Chapter 4, as production increases, average variable costs

-Refer to Table 4.1, Box C should be filled with

-Refer to Table 4.2, Box I should be filled with

When workers subdivide the tasks of a job in such a way so as to become more efficient economists refer to this as

Suppose you are deciding whether or not to increase production. You are making a loss with many competitors. If you produce one more unit your increase in cost will be $10, your average variable costs will increase to $9.50 and your average fixed costs will decrease. Finally, the price you are able to charge will be $9.75 You should

Average Variable Cost is

If a firm's marginal cost is smaller than its average total cost, its average total cost is

-Refer to Table 4.2, Box M should be filled with

In the derivation of TFC, you find