Exam 9: Supply: The Costs of Doing Business

The table given below shows the total fixed and variable costs of a firm. Table 7.3 Using the information in Table 7.3 we can conclude that the marginal-cost curve intersects the average-variable-cost curve at ____ unit(s)of output.

If marginal physical product of labor is declining, then average physical product must also be declining.

If the average total cost of producing 2 pounds of cheese is $4 and the average total cost of producing 3 pounds of cheese is $4.2, then the marginal cost of producing third pound of cheese is equal to:

Marginal fixed cost:

The law of diminishing returns applies:

In the long run, total variable cost:

In the short run when output is zero, total cost is:

The table given below shows the average total cost of production of a firm at different levels of the output. Table 7.5 In Table 7.5, the marginal cost of producing the third unit of output is:

The table given below shows the total fixed and variable costs of a firm. Table 7.3 In Table 7.3, marginal cost is equal to average total cost at a quantity of:

The table given below shows the average total cost of production of a firm at different levels of the output. Table 7.5 In Table 7.5, if the total fixed cost is $3, what is the total variable cost of producing 5 units?

Overhead costs are identical to fixed costs.

Diseconomies of scale:

In the long run,

In the long run, total cost is equal to total fixed cost at an output of zero.

The long-run average-total- cost curve represents:

The table given below shows the average total cost of production of a firm at different levels of the output. Table 7.5 In Table 7.5, what is the total cost of producing 4 units?

With expansion in the level of output, total fixed cost:

When more and more units of a variable factor are combined with constant amount of fixed factor, such that the variable factor becomes abundant compared to the fixed factor, the output will eventually:

When average total cost is minimum, it is:

After hiring a new employee, a manager finds that the total output has increased.When the manager hires another employee however, he realizes that although the total production has increased, the increment is less than the previous case.This is the result of: