Exam 14: Production and Cost

-The above table has the total product schedule for Jesse's Lawn Service. a.In the figure,label the axes and then graph the total product curve. b.Find the average product for the different amounts of employment.

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

-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 2 workers,her average variable cost equals

If a firm increases its output and its average cost decreases,the firm is experiencing which of the following?

Suppose that a firm earned $500,000 in total revenue.At the same time,it incurred labor costs of $200,000; economic depreciation of $50,000; normal profit of $75,000; interest paid to the bank of $25,000; and used other factors of production that cost $100,000.The economic profit earned by the firm equals

When the marginal product of an additional worker is less than the marginal product of the previous worker,there are ________ returns to labor.

-Kenya owns a lawn mowing company.His total product schedule is in the above table.The marginal product of the fourth worker is ________ lawns mowed per week.

-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 variable cost equals

Which of the following statements is true?

When the slope of the total product curve is steep,the marginal product is

A firm pays $50,000 for a machine that is used in production for one year,after which it is sold for $40,000 to another firm.The $10,000 difference is

In the short run,total variable cost

The opportunity cost of a firm using its own capital is

Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and,as a result,her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.

Bill is an economics professor who earns $40,000 teaching but decides to leave and fulfill his dream of catering barbecues.During his first year of barbecuing he earned total revenue of $60,000.He spent $30,000 on food and supplies.He also paid his wife $10,000 to help serve food.The normal profit for an entrepreneur running a barbecue business is $3,000.He also rented an industrial grill/fry truck for $12,000.An accountant would conclude that Bill's profit was

-The above table shows the total product schedule for Hair Today,a hair styling salon. a.What is the first worker's marginal product? The second worker? The third worker? The fourth worker? The fifth worker? b.Over what range of workers is there increasing marginal returns? Over what range is there decreasing marginal returns?

A firm increases its output and its average total costs remain unchanged.Is the firm experiencing increasing returns to scale,constant returns to scale,or decreasing returns to scale?

Economic profit equals total revenue minus total

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

If Melissa owns a software company that incurs no fixed costs,then