Exam 6: Technology,production and Costs

Table 6.1 Number of Workers Mushrooms per Day (metrics) 1 12 2 30 3 45 4 50 5 54 6 56 Table 6.1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. -Refer to Table 6.1.Diminishing marginal returns sets in when the ________ worker is hired.

If a firm is experiencing diseconomies of scale,its long-run average cost curve is increasing.

What is average total cost?

Marginal cost is equal to the _________.

An avocado orchard employs five full-time workers.Currently,the average product of labour is 60 kilograms of avocados per day.The orchard hires a sixth full-time worker and his marginal product is 75 kilograms of avocados.The average product of the six workers will now be ________.

Which of the following statements is false?

Describe the relationship between marginal cost and average total cost. __________________________________________________________________________________________________________________________________________________________________________________________

A factor of production that is generally fixed in the short run is ________.

Figure 6.5 -Refer to Figure 6.5.The vertical difference between curves F and G measures _________.

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

Figure 6.10 -Refer to Figure 6.10.Identify the minimum efficient scale of production.

If a firm's long-run average total curve shows that it can produce 5 000 DVDs at an average cost of $2.00 and 15 000 DVDs at an average cost of $1.50,this is evidence of _________.

Figure 6.1 -Refer to Figure 6.1.What is the marginal product of the third worker?

In the short run,if average product is at its maximum,then average variable cost is at its minimum.

Another name for the explicit cost of production is _______.

Which of the following statements best describes the economic short run?

Assume that you observe the long-run average cost curve of a local Bookstores,a national chain.Starting from the point on the curve where output is zero and moving to the right,which of the following lists the behaviour of long-run average costs in the correct sequence (that is,which will be observed first,second,etc.)?

All of the following statements are true of the minimum efficient scale except one.Which one?

Which of the following equations is incorrect?

Maria's Yiros House sells yiros.The cost of ingredients (pita,meat,spices,etc.)to make a yiros is $2.00.Maria pays her employees $60 per day.She also incurs a fixed cost of $120 per day.What is Maria's total cost per day when she does not produce any yiros and does not hire any workers?