Exam 11: Technology, production, and Costs

Table 11-8 Elegant Settings manufactures stainless steel cutlery. Table 11-8 shows the company's cost data. -Refer to Table 11-8.What is the minimum efficient scale of production?

Which of the following is not a reason why firms experience economies of scale?

If another worker adds 9 units of output to a group of workers who had an average product of 7 units,then the average product of labor

Consider a firm that uses two inputs,labor and capital,to produce its output.Assume labor is measured on the horizontal axis and capital on the vertical axis.Which of the following best explains why the marginal rate of technical substitution decreases in absolute value as we move down an isoquant?

The additional output a firm produces by hiring one more worker is called the marginal product of labor.

Figure 11-16 -Refer to Figure 11-16.The figure above illustrates a series of isoquants.Which of the following statements is true?

Describe how Wal-Mart has used positive technological change to manage its inventory.

If the firm is producing no output in the short run,then its total costs are zero.

If a firm decreases its plant size and finds that its long-run average costs have decreased,then

Jayanthi moves her yoga studio from her home to a space she rents in Oakland,California.Holding everything else constant,as a result of this move

Average total cost is equal to average variable cost minus average fixed cost.

Which of the following is typically considered a fixed cost by academic book publishers but a variable cost by companies that print books?

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

A firm has successfully adopted a positive technological change when

Figure 11-7 Figure 11-7 shows the cost structure for a firm. -Refer to Figure 11-7.When the output level is 100 units average fixed cost is

Which of the following statements explains the difference between diminishing returns and diseconomies of scale?

Costs that change as output changes are called incremental costs.

The absolute value of the slope of an isocost line equals the ratio of

Which of the following statements is false?

The slope of an isoquant measures