Exam 7: Production Costs

Narrbegin Exhibit 6.8 Cost schedule for producing pizzas $\begin{array} { | c | c | c | c | } \hline \text { Pizzas } & \begin{array} { c } \text { Fized } \\\text { cost (\$) }\end{array} & \begin{array} { c } \text { Variable } \\\text { cost (\$) }\end{array} & \begin{array} { c } \text { Tatal } \\\text { cost (\$) }\end{array} \\\hline 0 & & & \\\hline 1 & & & 48 \\\hline 2 & & 17 & \\\hline 3 & & 27 & \\\hline 4 & & & 78 \\\hline 5 & 40 & & \\\hline 6 & & 64 & \\\hline 7 & & 00 & \\\hline\end{array}$ -By filling in the blanks in Exhibit 6.8, the AFC of three pizzas is shown to be equal to:

Which of the following is true if the total variable cost curve is rising?

Which of the following is considered to be a fixed cost of operating a hairdressing salon?

Narrbegin Exhibit 6.1: The production function -In Exhibit 6.1, total output increases from A to C because:

Which of the following statements is true?

Narrbegin Exhibit 6.6 Cost schedule for firm X $\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { quantity }\end{array} & \begin{array} { c } \text { Total Exed } \\\text { cost (\$) }\end{array} & \begin{array} { c } \text { Total variable } \\\text { cost (\$) }\end{array} \\\hline 0 & 100 & 0 \\\hline 1 & 100 & 50 \\\hline 2 & 100 & 84 \\\hline 3 & 100 & 108 \\\hline 4 & 100 & 127 \\\hline 5 & 100 & 150 \\\hline\end{array}$ -As shown in Exhibit 6.6, the total cost of producing five units is:

Implicit costs are:

The long run is a period of time:

Narrbegin Exhibit 6.5 Cost schedule for a firm $\begin{array} { | c | c | c | } \hline \text { Quantity } & \text { Tatal cost (\$) } & \text { Marginal cost (\$) } \\\hline 0 & 200 & \\\hline 1 & 900 & \\\hline 2 & & 900 \\\hline 3 & 3000 & \\\hline\end{array}$ -In Exhibit 6.5, by filling in the blanks it can be determined that the marginal cost of the third unit of output is:

A farm can produce 10 000 bushels of wheat per year with five workers and 12 000 bushels with six workers. The marginal product of the sixth worker for this farm is:

The law of diminishing marginal returns causes a firm's short-run marginal cost curve to be U-shaped.

Which of the following statements is true?

Which of the following are implicit costs for a typical firm?

If a firm increases output and its average total cost declines, then the firm is experiencing economies of scale.

Narrbegin Exhibit 6.10 Long-run average cost Narrend -In Exhibit 6.10, short-run average total cost, short-run marginal cost and long-run average cost are all equal at which level of output per week?

Narrbegin Exhibit 6.3 A marginal product curve -As shown in Exhibit 6.3, what was the marginal product of labour when the second worker was hired?

If ATC = $10, AVC = $6, AFC = $3 and MC = $5; then if output increased by one unit:

If a firm has total revenue of $200 million, explicit costs of $190 million and implicit costs of $10 million, its economic profit is:

Narrbegin Exhibit 6.6 Cost schedule for firm X $\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { quantity }\end{array} & \begin{array} { c } \text { Total Exed } \\\text { cost (\$) }\end{array} & \begin{array} { c } \text { Total variable } \\\text { cost (\$) }\end{array} \\\hline 0 & 100 & 0 \\\hline 1 & 100 & 50 \\\hline 2 & 100 & 84 \\\hline 3 & 100 & 108 \\\hline 4 & 100 & 127 \\\hline 5 & 100 & 150 \\\hline\end{array}$ -As shown in Exhibit 6.6, the total cost of producing four units is: