FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: The Costs of Production.

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 171

Multiple Choice

Review LaterAdd Note

Review Later

Variable cost divided by quantity produced is

A) average total cost.
B) marginal cost.
C) profit.
D) None of the above is correct.

E) B) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 172

Multiple Choice

Review LaterAdd Note

Review Later

Economies of scale occur when

A) long-run average total costs rise as output increases.
B) long-run average total costs fall as output increases.
C) average fixed costs are falling.
D) average fixed costs are constant.

E) A) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 173

Multiple Choice

Review LaterAdd Note

Table 13-11 Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. -Refer to Table 13-11.What is the average fixed cost for the month if 9 instructional modules are produced?

An example of an opportunity cost that is also an implicit cost is

A firm produces 300 units of output at a total cost of $1,000.If fixed costs are $100,

Table 13-12 Betty's Bakery -Refer to Table 13-12.What is the variable cost of producing 8 cakes at Betty's Bakery?

Table 13-10 Eileen's Elegant Earrings produces pairs of earrings for its mail order catalogue business. Each pair is shipped in a separate box. She rents a small room for $150 a week in the downtown business district that serves as her factory. She can hire workers for $275 a week. There are no implicit costs. -Refer to Table 13-10.One week,Eileen earns a profit of $125.If her revenue for the week is $1100,how many boxes of earrings did she produce?

Suppose Jan started up a small lemonade stand business last month.Variable costs for Jan's lemonade stand now include the cost of

Table 13-13 -Refer to Table 13-13.What is variable cost when output equals 30 units?

When a firm experiences diseconomies of scale,

Wiladee used to work as an office manager,earning $25,000 per year.She gave up that job to start a tailoring business.In calculating the economic profit of her tailoring business,the $25,000 income that she gave up is counted as part of the tailoring firm's

Table 13-6 Wooden Chair Factory -Refer to Table 13-6.The Wooden Chair Factory experiences diminishing marginal product of labor with the addition of which worker?

A firm's opportunity costs of production are equal to its

Brady Industries has average variable costs of $1 and average total costs of $3 when it produces 500 units of output.The firm's total fixed costs equal

A production function is a relationship between inputs and

The marginal product of labor is equal to the

The long-run average total cost curve is always

Table 13-10 Eileen's Elegant Earrings produces pairs of earrings for its mail order catalogue business. Each pair is shipped in a separate box. She rents a small room for $150 a week in the downtown business district that serves as her factory. She can hire workers for $275 a week. There are no implicit costs. -Refer to Table 13-10.What is the total cost associated with making 890 boxes of earrings per week?

Table 13-6 Wooden Chair Factory -Refer to Table 13-6.Each worker at the Wooden Chair Factory costs $12 per hour.The cost of each machine is $20 per day regardless of the number of chairs produced.Assume the number of machines does not change.If the factory produces at a rate of 78 chairs per hour,what is the total machine cost per day?

The amount of money that a firm receives from the sale of its output is called