Exam 8: Technology,production,and Costs

Over the past twenty years,the number of small family farms has fallen significantly and in their place there are fewer,but larger,farms owned by corporations.Which of the following best explains this trend?

If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units,then the average product of 12 workers is

Figure 8-1 -Refer to Figure 8-1.The marginal product of the 7th worker is

Which of the following is not a source of technological advancement for a producer?

Consider a manufacturing operation that uses specialized machinery and labor to produce its output.In this case,the input that is not fixed in the short run is labor.

Economies of scale exist as a firm increases its size in the long run because of all of the following except

As output increases,average fixed cost gets smaller and smaller.

Figure 8-2 -Refer to Figure 8-2.The curve labeled "F" is

What is the difference between total cost and variable cost in the long run?

Which of the following are implicit costs for a typical firm?

Suppose the total cost of producing 40,000 flash drives is $120,000,and the fixed cost is $30,000. a.What is the variable cost? b.When output is 40,000,what are the average variable cost and the average fixed cost? c.Assuming the cost curves have the usual shape,is the dollar difference between the average total cost and the average variable cost greater when the output is 40,000 flash drives or when the output is 60,000 flash drives? Explain.

Table 8-3 Table 8-3 shows cost data for Lotus Lanterns,a producer of whimsical night lights. -Refer to Table 8-3.What is the average total cost of production when the firm produces 120 lanterns?

As a firm hires more labor in the short run,the

Figure 8-2 -Refer to Figure 8-2.The curve labeled "E" is

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

If the firm is producing no output in the short run,then its total costs are zero.

The long-run average cost curve shows

Adam spent $10,000 on new equipment for his small business,"Adam's Fitness Studio." Membership at his fitness center is very low and at this rate,Adam needs an additional $12,000 per year to keep his studio open.Which of the following is true?

The explicit cost of production is also called

What are economies of scale? What are diseconomies of scale?