Exam 10: Production and Cost

This month,the local widget factory produced 100 widgets.The total variable cost of production was $500 and the average total cost of production was $8. a.What is the total cost? b.What is the total fixed cost? c.What is the average fixed cost? d.What is the average variable cost?

When a firm becomes so large it is difficult to coordinate and control,it is most likely that

Ajax Manufacturing has a fixed scale of plant with the levels of total product given in the table for different levels of labor.Complete the table by calculating the average product and marginal product.

Denise owns a plant that produces watch parts in Ohio.Denise noticed that when she hired the last worker,that worker's marginal product exceeded the marginal product of the previous worker.As a result,when the last worker was hired,Denise's average product of labor

April quit her job as an accountant at Ernst and Young,where she was paid $45,000 per year.She started her own landscaping business.She rents machines and tools for $50,000 and pays $10,000 as wages to her help.These are her only costs.April earned total revenue of $100,000.Which of the following statements is true?

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.When the ________ worker is hired,the average product of labor ________ the marginal product of labor.

Average variable cost equals

The figure above shows some of a firm's cost curves. -Based on the figure above,curve C is the firm's

The marginal cost curve intersects the ________ curves at their ________ points.

An increase in the price of labor (a variable resource)shifts

Dr.Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental Clinic.His revenues for the first year are $500,000.He paid $90,000 in rent for the dental office,$60,000 for his office manager's salary,$24,000 for the dental hygienist,$150,000 for insurance,and $6,000 for other miscellaneous costs.The normal profit from running his business is $20,000.Which of the following statements is true?

As a typical firm increases its output,its marginal cost

If a business owner decided to expand her business but rather than borrowing money from a bank used her own funds,then

The total variable cost curve ________ because ________ as output increases.

-The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table.Based on the table,the marginal cost of producing the fourth gallon of ice cream is

In the short run,total variable cost

Which of the following variables do you need to know to calculate marginal cost? I.change in total cost Ii.marginal product of labor Iii.change in quantity of labor used Iv.change in output

Average product is equal to

-The above table has the total product schedule for Jesse's Lawn Service. a.In the figure,label the axes and then graph the total product curve. b.Find the average product for the different amounts of employment.

The main sources of economies of scale are