Extra Credit 3 micro econ

What is the name for the additional output that a firm produces as a result of hiring one more worker?

Marginal product of labor

According to the table of data, when do diminishing returns in the production of pizzas begin?

When the third worker is hired

According to the graph, which level of output represents the minimum efficient scale in bookselling?

20,000 books

In the short-run, the cost that is independent of the amount of output produced is called __________.

Fixed cost

According to the table, which of the following are implicit costs?

Foregone salary and foregone interest

What is occurring from the origin up until point A in this graph?

Output increases at an increasing rate.

The downward sloping part of the long run average total cost curve is where the firm is achieving:

economies of scale

According to the table, what is the average total cost of producing 550 pizzas?

$5.00

Which of the following statements is correct?

Accounting profit is larger than economic profit.

If the number of people in a publishing company does not go up or down with the quantity of books it publishes, then how should we categorize the salaries and benefits paid to these employees?

As a part of fixed cost

Which of the following are sometimes called accounting costs?

Explicit

Which graph is representative of a typical average total cost curve?

Graph B

Which of the following is known as the highest-valued alternative that must be given up in order to engage in an activity?

Opportunity cost

Minimum efficient scale is the level of output at which:

all economies of scale have been exhausted

According to the graph, which change in output represents economies of scale in bookselling?

from 1,000 to 20,000 books sold per month

__________ equals the firm's revenues minus all implicit and explicit costs.

Economic profit

According to the graph, what is the marginal cost of producing the 50th cup of tea?

$2.00

According to the data in the table, what is the marginal cost of producing the 640th pizza?

$43.33

__________ is the additional cost to the firm of producing one more unit of a good or service.

Marginal cost

According to the graph, over what range of output do we find constant returns to scale in bookselling?

Between 20,000 and 40,000 books

According to the graph, what size bookstore is more likely to experience diseconomies of scale?

Bookstores that sell more than 80,000 books per month

Based on the relationship between average total cost and marginal cost, which of the curves appears to be average total cost?

Curve 2

According to the graph, which of the following is more likely to occur when moving from point A to point B?

Diminishing returns

The short run is a period of time where __________ while the long run is a period of time where __________.

at least one input is fixed, all inputs are variable

When the marginal product of labor is greater than the average product of labor, then the average product of labor must be:

increasing