Exam 10: Production and Cost

Bill is an economics professor who earns $40,000 teaching but decides to leave and fulfill his dream of catering barbecues.During his first year of barbecuing he earned total revenue of $60,000.He spent $30,000 on food and supplies.He also paid his wife $10,000 to help serve food.The normal profit for an entrepreneur running a barbecue business is $3,000.He also rented an industrial grill/fry truck for $12,000.An accountant would conclude that Bill's profit was

When the average product is at its maximum,

Which of the following statements is true?

Which of the following is an explicit cost of production?

What are economies of scale? What is the main source of economies of scale?

Economic depreciation is the

If Melissa owns a software company that incurs no fixed costs,then

When the marginal product is increasing as the quantity increases,then as the quantity increases,the

The law of decreasing returns states that as a firm uses more of a

-The above table shows the total product schedule for Hair Today,a hair styling salon.Based on the table,the marginal product for Hair Today

The average fixed cost curve

________ cost is defined as a cost of production that does not entail a direct money payment.

Suppose a firm's total revenue is $1,000,000.The firm has incurred explicit costs of $750,000.There is also $50,000 of forgone wages by the owner,$10,000 of forgone interest by the owner,$3,000 worth of economic depreciation,and $20,000 worth of normal profit.What is the firm's economic profit?

A firm pays $50,000 for a machine that is used in production for one year,after which it is sold for $40,000 to another firm.The $10,000 difference is

Which of the following is correct?

If the average product of labor curve is rising, I.the average variable cost curve is falling. Ii.the marginal cost curve is definitely falling. Iii.the marginal product curve has reached its maximum.

The opportunity cost of a firm using its own capital is

-The table above shows

Which of the following is an implicit cost in Jim's business venture? I.the salary Jim could have earned at another job Ii.the interest Jim must pay on the loan he incurred to help open his business Iii.the interest Jim lost when he used his savings to help open his business

The figure above shows a firm's average total cost and marginal cost curves. -Based on the figure above,the firm's marginal product curve slopes upward at levels of output between ________ and the firm's average product curve slopes upward at levels of output between ________.