Exam 11: Technology, production, and Costs

Table 11-2 -Refer to Table 11-2.Alicia Gregory owns a foot massage business.She leases 4 computer-controlled massage booths,for which she pays $125 per day.She cannot increase the number machines she leases without giving the manufacturer 3 months notice.She can hire as many workers as she wants at a cost of $75 per day per worker.These are the only two inputs she uses in her business.Use this information to fill in the columns in the above table.

As a firm hires more labor in the short run,the

If diminishing marginal returns have already set in for Golden Lark Woodworks,and the marginal product of the 6th carpenter is 8 chairs,then the marginal product of the 7th carpenter is

Table 11-1 Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May 2011. -Refer to Table 11-1.What is the marginal product of the 4th worker?

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.

Figure 11-8 Figure 11-8 shows the optimal input combinations for the production of a given quantity of cotton in the United States and in China. -Refer to Figure 11-8.Which of the following could explain why the United States and China use different input combinations to produce a given quantity of cotton and yet,each country produces that quantity at the lowest possible cost?

Higher isocost lines correspond to higher

If the marginal cost curve is below the average variable cost curve,then

In the short run,if marginal product is at its maximum,then

Figure 11-4 -Refer to Figure 11-4.Identify the curves in the diagram.

Figure 11-5 -Refer to Figure 11-5.Identify the minimum efficient scale of production.

If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units,then the average product of 12 workers is

Marginal cost is equal to the

Accounting costs exclude implicit costs.

What is the difference between "diminishing marginal returns" and "diseconomies of scale"?

Figure 11-4 -Refer to Figure 11-4.Curve G approaches curve F because

An expansion path shows

Marginal cost is the

Figure 11-2 -Refer to Figure 11-2.Diminishing returns to labor set in

In the long run the relevant cost is total cost.