Exam 11: Technology,production,and Costs

Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) 75 200 170 370 4.93 80 200 230 430 5.36 90 200 7.67 100 200 810 115 200 11.8 117 200 1264 1464 12.5 120 200 1480 Table 11-7 shows cost data for Lotus Lanterns,a producer of whimsical night lights. -Refer to Table 11-7.What is the variable cost of production when the firm produces 115 lanterns?

What is an isocost line? What is the slope of an isocost line?

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

Figure 11-18 -Refer to Figure 11-18.A curve that connects points A,D,and E is called

Figure 11-14 shows the optimal input combinations for the production of a given quantity of cotton in the United States and in China. -Refer to Figure 11-14.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?

Economic costs of production differ from accounting costs in that

If marginal cost is above the average variable cost,then average variable cost is decreasing.

When UPS implemented changes which allowed it to deliver more packages with the same number of workers and planes,this represented a positive technological change.

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

Economic costs include implicit costs but not explicit costs.

As output increases

Figure 11-1 -Refer to Figure 11-1.The average product of the 4th worker

Number of Workers Apples per Day (bushels) 1 50 2 120 3 180 4 230 5 270 6 300 Table 11-2 summarizes production at the Crunchy Apple Orchard for the month of April. -Refer to Table 11-2.What is the average product of labor when the orchard employs 5 workers?

If a firm experiences positive technological change,it is able to produce more output using the same inputs.

The processes a firm uses to turn inputs into outputs of goods and services is called

Which of the following explains why the marginal cost curve has a U shape?

Some colleges now offer massive open online courses (MOOCs),where students do not need to be in the same classroom as their instructors.The fixed cost of an online course is relatively ________,but after the courses are placed online,the marginal cost of providing instruction to an additional student is ________.

Figure 11-6 contains information about the short run cost structure of a firm. -Refer to Figure 11-6.In the figure above which letter represents the marginal cost curve?

Which of the following statements is false?

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.Calculate Vipsana's total cost per day when she produces 50 gyros using two workers?