Exam 14: Production and Cost

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 680 machines.Jill's average product of labor equaled ________ lie detectors per worker.

Suppose the local newspaper hires students to fold and bag newspapers for delivery and pays them $20 per shift.Five students can fold and bag 300 newspapers per shift.The fourth student added 50 newspapers to total output.The cost of the capital the firm uses is fixed at $50 per shift. a.Is the newspaper operating in the long run or short run? Why? b.What is the average product of 5 students? c.Calculate the total fixed cost,total variable cost,and total costs of folding and bagging 300 newspapers. d.Calculate the average fixed cost,average variable cost,and average total costs of folding and bagging 300 newspapers. e.What is the marginal cost of one of the 50 newspapers folded and bagged by the fourth student?

John fishes for a living.Last year,he sold $100,000 of fish.Bait,nets and other fishing supplies cost John $10,000 and he paid $40,000 in salaries to his helpers.Depreciation on his boat and other equipment,as calculated using IRS rules,was $15,000.What was John's profit as would be calculated by an accountant?

Jones Production started business with a small scale plant.Fortunately for Smith,the owner of Jones Production,the business grew rapidly.The table below gives the total costs and the associated output for each year. a.Complete the table by finding the average cost for each scale. b.Over what range of total product (output)did Jones Production experience economies of scale,constant returns to scale,and diseconomies of scale?

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

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

Which of the following statements correctly describes a total product curve?

Economic depreciation is the

The marginal product of labor is the change in

As we observe the cost curves graph,we see that the

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average variable cost of producing 1,000 frijoles?

The U-shaped average total cost curve is

Which of the following is correct?

The long run is a time period that is

If marginal cost increases when output increases,then

-The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?

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.

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

-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 total cost equals

What do economists mean when they say that a firm's plant is fixed?