Exam 8: Technology,production,and Costs

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 variable cost of production when the firm produces 115 lanterns?

If the average variable cost curve is above the marginal cost curve,then

If fixed costs do not change,then marginal cost

State the law of diminishing marginal returns.

The ABC Company manufactures routers that are used to provide high-speed Internet service.ABC sells an average of 1,000 routers each month,but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month.Therefore,

Which of the following costs will not change as output changes?

A positive technological change which decreases the price of inputs 1366 Technologies uses to produce solar wafers will cause

In the short run,marginal product of labor increases at first and then falls because

If production displays economies of scale,the long-run average cost curve is

Marginal cost is equal to the

Figure 8-2 -Refer to Figure 8-2.The average product of labor declines after L2 because

The president of Toyota's Georgetown plant was quoted as saying,"Demand for high volumes saps your energy.Over a period of time,it eroded our focus [and] thinned out the expertise and knowledge we painstakingly built up over the years." Based on this quote,what must be true of the plant's average cost of production curve?

Which of the following is an example of a long run adjustment?

Figure 8-2 -Refer to Figure 8-2.Short run output is maximized at

Damian owns a tattoo parlor and has hired three tattoo artists to work for him.The marginal product of labor is 8 for the first artist,12 for the second artist,and 7 for the third artist.What is Damian's average product of labor for these three tattoo artists?

Vipsana's Gyros House sells gyros.The cost of ingredients (pita,meat,spices,etc. )to make a gyro is $2.00.Vipsana pays her employees $60 per day.She also incurs a fixed cost of $120 per day.Calculate Vipsana's average fixed cost per day when she produces 50 gyros using two workers?

All of the following statements are true of the minimum efficient scale except one.Which one?

Table 8-1 Table 8-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May 2011. -Refer to Table 8-1.What is the marginal product of the 4th worker?

At the minimum efficient scale,

Assume that 1366 Technologies initially does not sell enough solar wafers to realize economies of scale.To reach economies of scale,1366 Technologies must