Exam 6: A Firms Production Decisions and Costs in the Short Run

Refer to the diagram below and indicate whether the following statements is true or false a)In region A,MP > 0. b)In region A,AP > MP c)In region B,MP is at first > 0 and then < 0. d)In region C,AP > MP e)In region C,AP < 0

What is depreciation?

"Fill in the blank" in the table below and then answering the question below. -Refer to the information above to answer this question.At what output does MC = ATC?

What are costs that are actually paid out in money?

The data in Table 6.1 are for Sam's Strawberries.The quantities are for number of tones of strawberries per month. a)What is the amount of TFC? b)What is the MC of the third tonne produced? c)What is the TVC of producing 4 tonnes? d)What is the ATC of producing 2 tonnes?

Which of the following statements would be true about a firm that is operating under conditions of excess capacity?

Below are some production data for Quite Simple Products Ltd. -Refer to the previous question to answer this question.How many units of labour are being used when diminishing returns first become evident?

What term refers to the total output divided by the quantity of inputs used to produce that total?

-What causes marginal cost to increase?

What is the significance of the minimum point on the average variable cost curve?

Depreciation is the annual cost of any asset that is expected to be in use for more than one year.

Can a firm earn an economic loss and an accounting profit at the same time? Explain.

If we assume that the level of output remains unchanged,which of the following could cause a decrease in average total,average variable,and marginal costs?

"If MP is falling than AP must be falling as well." Evaluate this statement.

"Fill in the blank" in the table below and then answering the question below. -Refer to the information above to answer this question.At what output is average product at a maximum?

-Refer to the graph above to answer this question.What does point a represent?

-Refer to the graph above to answer this question.What is the most productive output?

The graph below illustrates the average and marginal product of labour for Get Smart Enterprises. -Refer to the graph above to answer this question.How many units of labour does the firm need to employ to achieve an output that minimizes marginal cost?

Which of the following statements is correct regarding normal profits?

Below are some production data for Quite Simple Products Ltd. -Refer to the information above to answer this question.What is the marginal product of the fifth unit of labour?