Exam 10: Production and Cost

Which of the following are correct statements about implicit and explicit costs? I.Normal profit is an implicit cost. Ii.Economic depreciation is an explicit cost. Iii.Wages are an explicit cost.

One of the major reasons for the U-shaped average total cost curve is the fact that

Acme produces rocket shoes for use by slow coyotes.Acme's total cost schedule is given in the table below.Acme's total fixed cost is $12.Complete the table.(In the table,TFC is the total fixed cost,TVC is the total variable cost,AFC is the average fixed cost,AVC is the average variable cost,and ATC is the average total cost. )

A firm's utility bill is a variable cost.If the cost of utilities increases,then in the figure above ________ upward.

The average product is the greatest in the short run when the

Jeremiah runs a bullfrog farm in Frogville,Oklahoma.Jeremiah notices that each additional worker he employs adds more to the total output than does the previous worker.Jeremiah must be

Consider a Wal-Mart supercenter and a 7-Eleven store.In the long run,

In the long run,constant returns to scale necessarily occur when the firm increases its production and the firm's

When the Rent-A-Limo Company negotiates its new labor contract it finds that the wages it must pay drivers have increased.How does this wage hike affect the Rent-A-Limo Company's average fixed cost,average variable cost,average total cost,and marginal cost?

Which of the following is an implicit cost? I.wages paid to workers Ii.the normal profit Iii.the electric bill

The main source of economies of scale is

Downsizing is the practice of laying off workers in an attempt to decrease average total cost.Can laying off workers decrease average total cost? Is it possible for the firm to downsize and have its average total cost increase? Explain your answer.

-Anna owns a dog grooming salon in Brunswick,Georgia.The above table has Anna's total product schedule.Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.These are her only costs.When Anna has a staff of 6 workers,her average fixed cost equals

The short run is a time period during which

If 6 workers can wash 42 cars a day and 7 workers can wash 50 cars a day,then the marginal product of the 7th worker equals

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

-The table above shows the total product schedule for Rick's Lawn Service,a yard care company.The total product schedule shows

The law of decreasing returns applies to

Which average cost curves are U-shaped?

-The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table.Based on the table,which of the following is correct?