Exam 7: Technology , Production and Costs

-Refer to Figure 7-2. Diminishing returns to labour set in

-Refer to Figure 7-7. When the output level is 100 units, average fixed cost is

-Refer to Figure 7-14. What is the combination of inputs that produces 200 gooseberry pies at the lowest cost?

-Refer to Figure 7-3. For what quantity of labour does production display diminishing returns?

-Refer to Figure 7-6. In the figure above, which letter represents the marginal cost curve?

Suppose the price of capital and labour remain constant. As a firm's expenditures for capital and labour increase, its isocost line

Describe the difference between technology and positive technological change.

A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor. This is an example of

-Refer to Figure 7-7. When output level is 100, what is the total cost of production?

Which of the following is a fixed cost?

The law of diminishing marginal returns

If average product is decreasing, then marginal product must be negative.

-Refer to Table 7-2. What is the average product of labour when the orchard employs 5 workers?

Use a long-run average cost curve graph to illustrate how diseconomies of scale would not make it beneficial for two companies to go through with a merger.

Average total cost is equal to average variable cost minus average fixed cost.

The marginal rate of technical substitution is measured by

-Refer to Figure 7-2. The curve labeled 'F' is

If another worker adds 9 units of output to a group of workers who had an average product of 7 units, then the average product of labour

-Refer to Figure 7-13. The lines shown in the diagram are isocost lines. A movement from CE to BD occurs when

-Refer to Figure 7-17. Starting from point e, a movement along the isocost to point f