Exam 14: Production and Cost

-The table above has the total product schedule for an imaginary good called a widget.Each unit of labor costs $25 and the total cost of capital is $100. a.Use this information to complete the table.In the table,TFC is the total fixed cost,TVC is the total variable cost,TC is the total cost,AFC is the average fixed cost,AVC is the average variable cost,ATC is the average total cost,and MC is the marginal cost. b.Suppose that labor becomes twice as expensive (so that one unit of labor now costs $50)but nothing else changes.Complete the above table with the new cost schedules.If you plotted the cost curves,how would the increased wage rate affect the cost curves?

The total product is 10 units.The average total cost is $30 and the average fixed cost is $10.What is the amount of the total variable cost?

In the long run,

In a figure showing the average total cost curve and the average variable cost curve,the vertical distance between the two curves is equal to the

The average product curve

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.

The short run is

The change in cost that results from a one-unit increase in output is called the

If 9 workers can produce 1,550 units of output and 10 workers can produce 1,700 units of output,then the marginal product of the 10th worker is

Marginal cost is equal to

-Under which of the following sets of circumstances is it definitely the case that the average product increases as more labor is hired?

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.)

Average variable cost equals

-Paulette owns a pizza parlor.Her total cost schedule is in the above table.Her total variable cost of producing four pizzas per hour is

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

Increasing marginal returns occur when the

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 ________.

Marginal cost equals

In the long run,the firm ________ change the number of workers it employs and ________ change the size of its plant.

The difference between a firm's total revenue and its total cost is its ________ profit.