ECON
During the previous month, a firm produced 350 tablet devices at an average variable cost of $37 and at an average fixed cost of $14. During the month, the firm's total costs were $
17850
At the end of the year, a firm produced 10,000 laptop computers. Its total costs were $8 million, and its fixed costs were $5 million. Part 2 What are the average variable costs of this firm?
300
Anthony's Chair Factory currently employs 50 workers, who produce 500 chairs. If Anthony hires a 51st worker, output will rise to 550. What is the marginal product of the 51st worker?
50
Chair Factory currently employs 100 workers, who produce 700 chairs. If Mark hires a 101st worker, output will rise to 800. What is the average product of the 101st worker?
7.92
During the previous month, a firm produced 500 tablet devices and its total costs were $30,000. Just before the firm produced its last tablet device in the previous month, its total costs were $29,918. The marginal cost incurred by the firm in producing the final tablet device that month was $
82
Which of the following is a correct statement about the short run in economics?
At least one input cannot be changed.
Which of the following statements describes a firm's long-run average cost curve?
A U-shaped curve that represents the minimum unit cost of producing any given rate of output.
At which point does marginal product begin to diminish for the manufacturer of portable power banks?
Between 22 and 33 workers per week capture 11
The graph to the right shows the long-run average cost (LAC) for a firm. 1.) Using the point drawing tool, identify the minimum efficient scale. Label it 'A'. 2.) Using the point drawing tool, identify the point where the firm begins to experience diseconomies of scale. Label it 'B'. Part 2
CAP 44
n the table above, diminishing returns begins with the addition of worker number 4 In the table above, the marginal product becomes negative when the 6th worker is added.
CAP14
The cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $15,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.)
CAP29
The diagram to the right displays short-run cost curves for a facility that produces liquid crystal display (LCD) screens for cell phones. Part 2 a. What are the daily total fixed costs of producing 300 LCD screens? $999 (Round your answer to the nearest penny.) Part 3 b. What are the total variable costs of producing 300 LCD screens per day? $1275(Round your answer to the nearest penny.) Part 4 c. What are the total costs of producing 300 LCD screens per day? $2274 (Round your answer to the nearest penny.) Part 5 d. What is the average total cost of producing 300 LCD screens? $7.58(Round your answer to the nearest penny.)
CAP30
1.) Using the 4-point curved line drawing tool, draw the marginal product curve, and label this line 'MP'. 2.) Using the 4-point curved line drawing tool, draw the average product curve, and label this line 'AP'. (For your control points, use 1,3, 4, and 7 units of labor.) Part 3 Carefully follow the instructions above, and only draw the required objects. Part 4 If the wage is $19 per hour and the marginal product is 9units per hour, then marginal cost is $2.11
CAP31
The following table shows the daily relationship between the number of workers and output (Q) for a small factory in the short run, with capital held constant. Each worker costs $100 per day, and the firm has fixed costs of $25 per day. Calculate total cost (TC), marginal cost (MC), and average total cost (ATC). (Round your answers to two decimal places
CAP32
A manufacturing firm with a single plant is contemplating changing its plant size. It must choose from among seven alternative plant sizes. In the table, plant size A is the smallest it might build, and size G is the largest. Currently, the firm's plant size is B. Part 2 At plant size B, this firm is currently experiencing economies of of scale. Part 3 What is the firm's minimum efficient scale? c
CAP33
Consider the long-run average cost curve to the right. Using the point drawing tool, plot a point along (on) this curve within the region of economies of scale. Label the point 'A'.
CAP41
Consider the long-run average cost curve to the right. Using the point drawing tool, plot the point of minimum efficient scale (MES) and label this point MES.
CAP42
Using the 3-point curved line drawing tool, draw a possible long-run average cost curve for a firm that always experiences diseconomies of scale no matter what plant size it selects. Label this curve 'ATC'.
CAP43
In the table to the right, fill in the the values for the Marginal Product of Labor.
CAPTURE13
Consider the figure to the right. Suppose that the current scale of output for a typical firm facing this LAC curve, which applies to all firms in this industry, is between points A and B, at about 500 units per period. If a new firm entering the industry desires to produce at the minimum efficient scale, would it wish to produce 50 units per period, 500 units per period, or 700 units per period? Explain. Part 2 By definition, minimum efficient scale is the lowest rate of output per period that minimizes long-run average cost. However, each of the three output rates is consistent with minimized long-run average cost. Hence, a new firm entering the industry will wish to produce at any rate exceeding 50and less than 700 units of output per period
CAPTURE35
If total product is increasing at a decreasing rate, then marginal product is
DECREASING
Consider the figure to the right. Suppose that the firm decreases its scale of operations from a level consistent with short-run average cost curve SAC3 to short-run average cost curve SAC1. Explain what happens with respect to economies or diseconomies of scale. Part 2 Initially, at the scale consistent with SAC3, the firm was operating along the upward-sloping portion of its long-run average cost curve, so it experienced diseconomies of scale. After decreasing its scale of output to the level consistent with SAC1, the firm now operates along the downward-sloping portion of the LAC curve, so it is experiencing economies of scale. Initially, at the scale consistent with SAC2, the firm was operating along the constant -sloping portion of its long-run average cost curve, so it experienced constant returns to scale. After increasing its scale of output to the level consistent with SAC3, the firm now operates along the upward -sloping portion of the LAC curve, so it is experiencing diseconomies of scale.
Initially, at the scale consistent with SAC2, the firm was operating along the constant-sloping portion of its long-run average cost curve, so it experienced constant returns to scale. After increasing its scale of output to the level consistent with SAC3, the firm now operates along the upward-sloping portion of the LAC curve, so it is experiencing diseconomies of scale. CAPTURE34
At the point of saturation, total product has reached its maximum. If marginal product is increasing, total product ________, and if marginal product is decreasing, total product ________.
TRUE......must be increasing, may be increasing or decreasing
The short run is a time period during which at least one input cannot be altered. A typical input that cannot be changed in the short run is a firm's plant size.
The long run is a time period in which all inputs can be varied
The short run is defined as
The period of time in which at least one factor of production is fixed.
Which of the following is true about the long-run average cost curve?
The long-run average cost curve is the envelope of the firm's short-run average cost curves.
In the long run
all factors of production are variable.
The long run is any time period where
all inputs can be changed.
In the long run there
are only variable inputs.
The short run is any time period where
at least one input cannot be changed
The following table shows the relationship between workers and output for a small factory in the short run, with capital held constant. Find the marginal product of labor (MPL). for this firm, diminishing marginal returns set in after worker 33 is employed.
cap22
The short-run production function for a manufacturer of portable power banks is shown at the right. Based on this information, calculate the marginal product at each quantity of labor. (Your answers should be whole numbers)
capture 10
onsider the figures to the right. Suppose that the firm decided to consider employing a 12th unit of labor, which it has determined would result in a decrease in total product from 380 units of output (employing 11 units of labor) to 355 units of output. If it were to do this, what would be the resulting average product of labor and marginal product of labor? Part 2 If the firm were to employ a 12th unit of labor, the average product of labor would be 29.7 units of output per unit of labor and the marginal product of labor would be negative −25.0 units of output per unit of labor. (Enter your responses rounded to one dec
capture 12
The short-run production function for a manufacturer of portable power banks is shown at the right. Based on this information, calculate the average product at each quantity of labor
capture 9
In the short run, if a firm continues to add workers, marginal product must begin to diminish because
each worker has less capital to work with.
From the perspective of the firm, what is the difference between the short run and the long run?
in the short run, at least one input is fixed, while in the long run all inputs are variable.
The law of diminishing marginal returns shows the relationship between
inputs and outputs for a firm in the short run.
If a firm hires an additional worker and discovers that its total output has fallen, then it must be true that
marginal product is negative.
The law of diminishing marginal returns is caused by Part 2
the existence of a fixed input that must be combined with increasing amounts of the variable input.
When the long-run average cost curve is falling
the firm is experiencing economies of scale.
In economics, the planning horizon is defined as
the long run, during which all inputs are variable.
The minimum possible short-run average costs are equal to long-run average costs when
the long-run curve is at a minimum point.
