Exam 20: Cost Curves-Part A

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Mary Magnolia from your workbook has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 600 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $4 per unit, how many bouquets per month should she sell in the short run?

(Multiple Choice)

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Question 41

The snow removal business in East Icicle, Minnesota,is a competitive industry.All snowplow operators have the cost function C = Q2 + 4, where Q is the number of driveways cleared.Demand for snow removal in the town is given by Qd = 120 - P.The long-run equilibrium number of firms in this industry is

(Multiple Choice)

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Question 42

If a competitive firm uses two inputs and has the production function F(x1, x2)= x^1/21 + x^1/22, then its marginal cost curve is horizontal.

(True/False)

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Question 43

The average variable cost curve must always be U-shaped.

(True/False)

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Question 44

Touchie McFeelie from your workbook has a production function (0.1)J^1/2 J^3/4, where J is the number of old jokes used and L is the number of hours of cartoonists' labor.Touchie is stuck with 400 old jokes for which he paid 4 dollars each.If the hourly wage rate for cartoonists is 5 dollars, then the total cost of producing 16 comics books is

(Multiple Choice)

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Question 45

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it were also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.67 per car, it would be worthwhile for him to buy this high-quality smasher if he needed to dispose of

(Multiple Choice)

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Question 46

The following relationship must hold between the average total cost (ATC)curve and the marginal cost curve (MC):

(Multiple Choice)

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Question 47

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it were also possible for Rex to buy a high-quality hydraulic car smasher that cost $650 per year to own and if with this smasher he could dispose of cars at a cost of $.67 per car, it would be worthwhile for him to buy this high-quality smasher if he needed to dispose of

(Multiple Choice)

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Question 48

Average fixed cost curves will be U-shaped if the marginal cost curve is upward sloping.

(True/False)

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Question 49

A competitive firm has the short-run cost function c(y)= 2y3 - 16y2 + 128y + 10.The firm will produce a positive amount in the short run if and only if the price is greater than

(Multiple Choice)

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Question 50

Mary Magnolia from your workbook has variable costs equal to y²/F, where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 200 square feet, if she is not able to get out of the lease or to expand her store in the short run, and if the price of a bouquet is $6 per unit, how many bouquets per month should she sell in the short run?

(Multiple Choice)

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Question 51

A firm has the short-run total cost function c(y)= 4y2 + 100.At what quantity of output is short-run average cost minimized?

(Multiple Choice)

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Question 52

A goatherd has the cost function c(y)= 2y2, where y is the number of tubs of goat cheese she makes per month.She faces a competitive market for goat cheese,with a price of $40 a tub.How many tubs should she produce per month?

(Multiple Choice)

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Question 53

Showing 41 - 53 of 53

Exam 20: Cost Curves-Part A

If a competitive firm uses two inputs and has the production function F(x1, x2)= x1/21 + x1/2 2, then its marginal cost curve is horizontal.

The average variable cost curve must always be U-shaped.

The following relationship must hold between the average total cost (ATC)curve and the marginal cost curve (MC):

Average fixed cost curves will be U-shaped if the marginal cost curve is upward sloping.

A competitive firm has the short-run cost function c(y)= 2y3 - 16y2 + 128y + 10.The firm will produce a positive amount in the short run if and only if the price is greater than

A firm has the short-run total cost function c(y)= 4y2 + 100.At what quantity of output is short-run average cost minimized?

A goatherd has the cost function c(y)= 2y2, where y is the number of tubs of goat cheese she makes per month.She faces a competitive market for goat cheese,with a price of $40 a tub.How many tubs should she produce per month?

Budget Constraint-Part A

Budget Constraint-Part B

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part A

Choice-Part B

Demand-Part A

Demand-Part B

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

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If a competitive firm uses two inputs and has the production function F(x1, x2)= x^1/21 + x^1/22, then its marginal cost curve is horizontal.