Exam 6: Technology,production and Costs

Jill Johnson owns a pizzeria.She currently produces 10 000 pizzas per month at a total cost of $500.If she produced one more pizza her total cost rises to $500.11.What does this tell us about Jill's marginal cost of producing pizzas?

In a diagram showing the average total cost and average variable cost curves,the minimum point of the average total cost is _________.

When do economies of scale occur?

Increases in the marginal product of labour result from __________.

Accounting costs exclude implicit costs.

Figure 6.1 -Refer to Figure 6.1.Diminishing marginal productivity sets in after _________.

Figure 6.1 -Refer to Figure 6.1.What is the average product of the fourth worker?

Figure 6.11 Figure 6.11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATC_a, ATC_b, and ATC_c. -Refer to Figure 6.11.In the short run,if the firm sells fewer than 5 000 picture frames per month,__________.

Suppose the total cost of producing 40 000 flash drives is $120 000,and the fixed cost is $30 000. a.What is the variable cost? b.When output is 40 000,what are the average variable cost and the average fixed cost? c.Assuming the cost curves have the usual shape,is the dollar difference between the average total cost and the average variable cost greater when the output is 40 000 flash drives or when the output is 60 000 flash drives? Explain. __________________________________________________________________________________________________________________________________________________________________________________________

Jennifer Borts moves her office from the premises she rents at a local shopping centre to her home.As a result of this move ________.

Average variable cost can be calculated using any of the formulas below except _________.

Table 6.3 Quantity of Workers Quantity of Boxes Marginal Product of Labour Average Product of Labour 0 0 ---- ---- 1 50 2 200 3 240 4 264 5 284 -Refer to Table 6.3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.The average product of labour will equal 60 boxes when Manny hires ___________.

Fill in the missing values in the following table.Draw one graph showing how total output increases with the quantity of workers hired,and another graph showing the marginal product of labour and the average product of labour. Quantity of Workers Total Output Marginal Product of Labour Average Product of Labour 0 0 1 200 2 500 3 900 4 1150 5 1300 __________________________________________________________________________________________________________________________________________________________________________________________

Which of the following statements is true?

What does the production function show?

The average total cost of production ________.

Table 6.3 Quantity of Workers Quantity of Boxes Marginal Product of Labour Average Product of Labour 0 0 ---- ---- 1 50 2 200 3 240 4 264 5 284 -Refer to Table 6.3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.Diminishing returns to labour are first observed in this example after Manny hires the ________ worker.

The rules of accounting generally require that ________ costs be used for purposes of keeping a company's financial records and for paying taxes.These costs are sometimes called ________ costs.

When does a 'stockout' occur?

When do diseconomies of scale occur?