eco learnsmart production
A company currently producing 10 air conditioners each day has daily total costs of $1,500. Producing an additional air conditioner will increases costs by $250 daily. What are the total daily costs for the firm if they produce the
$1,750
Suppose a snowboard manufacturer increases its output by 1 snowboard per day. As a result, the total cost of producing snowboards each day rises from $100 to $110. The marginal cost of producing an extra snowboard is $
10
The information below shows the relationship between the number of workers and the amount of computer chips they can produce. What is the average product when there are two workers? 250/2=125
125 computer chips
The information below shows the relationship between the number of workers and the amount of computer chips they can produce. What is the marginal product of the second worker?
150 computer chips
Suppose a snowboard manufacturer increases it output by 1 snowboard per day. As a result, the total cost of producing snowboards each day rises from $120 to $145. The marginal cost of producing an extra snowboard is $
25
A person who has been managing a dry cleaning store for $30,000 per year decides to open her own dry cleaning store. The expenses are $35,000 for salaries (excluding the owner's), $10,000 for supplies, $8,000 for rent, $2,000 for utilities, and $5,000 for interest on a bank loan. The revenues of the store during the first year of operation are $100,000. The total accounting profit is $
40000
A person who has been managing a dry cleaning store for $30,000 per year decides to open his own dry cleaning store. The expenses are $35,000 for salaries (excluding the owner's), $10,000 for supplies, $8,000 for rent, $2,000 for utilities, and $5,000 for interest on a bank loan. The explicit costs are $
60000
What is the total cost of production associated with the 3rd
62.50
A person who has been managing a dry cleaning store for $30,000 per year decides to open his own dry cleaning store. The expenses are $35,000 for salaries (excluding the owner's), $10,000 for supplies, $8,000 for rent, $2,000 for utilities, and $5,000 for interest on a bank loan. The total economic cost is $
90,000
A firm is reducing their output from 2,000 units to 1,000 units. This decision results in a reduction in the long run average cost from $300 to $200. What can be said about this firm?
The firm is experiencing diseconomies of scale.
A firm is planning to increase output in the long run from 100 units to 200 units. The long run average total cost falls from $25 to $20. What can be said about this level of output?
The firm is experiencing economies of scale.
The shape of the long-run average total cost curve can differ for different types of firms. (True or False)
True
Total revenue minus the explicit cost of production is _____ profit.
accounting
The short run is a period of time in which:
at least one input of production is fixed.
In addition to total cost, it is useful to calculate
average
The amount of output produced per unit of a resource employed is the
average
Total product divided by the number of units of a resource employed gives the
average
When the marginal cost falls below the average cost, the
average
The fixed cost per unit is equal to:
average fixed cost.
Total cost divided by the amount of output produced is equal to:
average total cost
Total cost per unit is equal to:
average total cost
Total variable cost divided by the amount of output produced is equal to:
average variable cost
Economies of scale is a condition in which the long-run average total cost of production
decreases
The average fixed cost curve:
decreases for all levels of output.
For quantities occurring before the marginal cost curve and average total cost curve intersect, the average total cost curve will be:
decreasing
Explicit costs are also known as
direct
Monetary payments made by individuals, firms ,and governments for the use of others' land, labor, capital, and entrepreneurial ability are _____ costs.
explicit
Total revenue minus the total _____ costs of production is accounting profit.
explicit
costs are also known as accounting costs whereas
explicit;implicit
The marginal cost is the:
extra or additional cost associated with the production of an additional unit of output.
The average total cost curve is:
greater than the average variable cost curve for all levels of output.
The shape of the long-run average total cost curve can differ for different types of firms depending on:
how much production it takes to reach the minimum long-run average total cost.
Costs for which no monetary payment is explicitly made are
implicit
The opportunity costs of using owned resources are
implicit
----marginal returns is a characteristic of production whereby the marginal product of the next unit of a variable resource utilized is greater than that of the previous variable resource.
increasing
A period of time in which at least one
input
A curve showing the lowest average total cost possible for any given level of output when all inputs of production are variable is the
long
A curve showing the lowest average total cost possible for any given level of output when all inputs of production are variable is the -----run average cost curve.
long
Constant returns to scale occur when:
long-run average total cost does not change as output increases.
The marginal cost curve shows the relationship between:
marginal cost and output.
When examining the cost curves for a firm, the minimum average variable cost occurs at the output level where:
marginal cost equals average variable cost.
The extra or additional cost associated with the production of an additional unit of output is the:
marginal cost.
When the === cost is above the ---- cost, the average cost should be increasing.
marginal;average
The lowest level of output at which the long-run average total cost is minimized is called:
minimum-efficiency scale.
Costs that do not change with the amount of
output
total ----- equals price times quantity. (Use one word for the blank.)
revenue
Economic profit consists of _____; accounting profit consists of _____.
revenue minus implicit and explicit costs; revenue minus explicit costs
A curve showing the average total cost for different levels of output when at least one input of production is fixed typically plant capacity is the
short
When there are diminishing marginal returns:
the marginal product of the next unit of a variable resource utilized is less than that of the previous variable resource.
Total product is:
the total amount of output produced with a given amount of resources.
---- cost equals total fixed cost plus total variable cost. (Answer in one word)
total
price times quantity.
total revenue
The price of a good times the quantity sold equals:
total revenue.
A curve showing the lowest average total cost possible for any given level of output when all inputs of production are
variable
Costs that change with the amount of output produced are
variable
Costs that change with the amount of output produced are _____ costs.
variable
Total _____ costs change with output whereas total _____ costs do not.
variable ; fixed
total -----costs change with output, whereas total ---- donot
variable; fixed
The marginal cost curve must intersect both the average
variable;total
Variable cost per unit of output produced is:
average variable cost.
----- returns to scale occurs when long-run average total cost does not change as output increases.
constant
Economic costs can be defined as the sum of _____ and _____ costs.
implicit; explicit
Total revenue minus the total _____ and total _____ costs of production is economic profit.
implicit; explicit
Diseconomies of scale is a condition in which the long-run average total cost of production
increases
A curve showing the ---- average total cost possible for any given level of output when all inputs of production are variable is the long-run average cost curve.
lowest
Minimum-efficiency scale refers to the:
lowest level of output at which the long-run average total cost is minimized.
costs of using owned resources are implicit costs.
opportunity
Costs that do not change with the amount of _____ produced are fixed costs.
output
profit consists of revenue minus implicit and explicit costs.
economic
The additional output produced as a result of utilizing one more unit of a variable resource is called:
marginal product.
The total amount of output produced with a given amount of resources is known as:
total product.
Which of the following is a source of economies of scale for a firm?
An increase in the specialization of laborv
What are the appropriate labels for Curves N and M in the nearby graph?
Curve N is total cost and Curve M is total variable cost.
Which of the following is true of economic costs?
Economic costs are defined as the sum of explicit and implicit costs.
A condition in which the long-run average total cost of production remains constant as production increases is called:
constant returns to scale.
The lowest level of output at which the long-run average total cost is minimized is called minimum
efficiency
Monetary payments made by individuals, firms ,and governments for the use of others' land, labor, capital, and entrepreneurial ability are
explicit
Total revenue minus the explicit and implicit costs of production is profit
economic
The marginal cost curve is:
decreasing for low levels of output, then begins increasing.
of scale is a condition in which the long-run average total cost of production increases as production increases.
diseconomies
A condition in which the long-run average total cost of production increases as production increases is called:
diseconomies of scale.
The additional output produced as a result of utilizing one more unit of a variable resource is the ----- product.
marginal
decreasing ----- returns are a characteristic of production whereby the marginal product of the next unit of a variable resource utilized is less than that of the previous variable resource.
marginal
The cost associated with an additional unit of output is called
marginal
