econ chapter 13

refer to table 13-9. what is average fixed cost when output is 40

1.00

Harry's Hotdogs is a small street vendor business owned by Harry Huggins. Harry makes 15 hotdogs in his first hour of business and incurs a total cost of 15.50, his average total cost per hotdog is

1.10

Scenario 13-3 tony is a wheat farmer, but he also spends part of his day teaching guiter lessons. Due to the popularity of his local country western band, farmer tony has more students requesting lessons than he has time for if he is to also maintain farming business. farmer tony charges $25 an hour for his guiter lessons. one spring day, he spends 10 hours in is fields planting $130 worth of seeds on his farm. He expects that the seeds he planted will yields 300 worth of wheat. refer to scenario tony's economic profit equals

130

refer to table 13-8. what is the marginal cost of the 2nd gigaplot at jimmy's gigaplot factory?

15

Refer to 13-6. During the week of july 4th, Adrain doesn't box chocolates. What are her costs during the week?

150

refer to table 13-8. what is the variable cost of producing 8 gigaplots at jimmy's gigaplot factory

160

scenario 13-5 a certain firm produces and sells staplers. last year, it produced 7000 staplers and sold each stapler for 6. in producing the 7000 staplers. it incurred variable costs of 28,000 and a total cost of 45000. refer to scenario 13-5. in producing the 7000 staplers, the firms average fixed cost was

2.43

13-5. the average variable cost of producing four widgets is

2.50

refer to 13-3 each worker at gallo's cork factory costs 12 per hour. the cost of each machine is 20 per day regardless of the number of corks produced. if gallos produces at a rate of 35 corks per hour and operates 8 hours per day, what gallos total labor cost per hour

48

Refer to 13-8. What is the total cost of producing 2 gigaplots at jimmy's gigaplot factory?

53

refer to 13-3 each worker at gallo's cork factory costs 12 per hour. the cost of each machine is 20 per day regardless of the number of corks produced. if gallos produces at a rate of 70 corks per hour and operates 8 hours per day, what gallos total labor cost per day

576

13-7. one month, teacher's help produced 18 instructional modules. what was the average fixed cost for the month

60

13-6. one week, adrian earns a profit of 125. if her revenue for the week is 1100, how many boxes of chocolate did she produce

780

refer to table 13-8. what is the variable cat of producing 5 gigaplots at jimmy's gigaplot factory

85

refer to table 13-9 what is variable cost when output equals 30

90.00

refer to figure 13-6. which of the curves is most likely to represent average fixed cost?

D

refer to figure 13-2. Which of the statements below is most consisten with the shape of the total cost curve?

Producing an additional cookie is always more costly than producing the previous cookie

the cost of producing the typical unit of output is the firm's average

average total cost

which of the following costs of publish a book is a fixed cost?

composition and jacket design for the book

when marginal cost is rising, average variable cost

could be rising or falling

refer to figure 13-2. the changing slope of the total cost curve reflects

decreasing marginal product

When, for a firm, long-run average total cost decreases as the quantity of output increases, we have a situation of

economies of scale

according to the law of supply

firms are willing to produce a greater quantity of a good when the price of the good is higher.

Some costs do not vary with the quantity of output produced. Those costs are called

fixed costs

which of the following would be categorized as an implicit cost?

forgone investment opportunities

the marginal product of labor is equal to the

increase in output obtained from a one unit increase in labor

the marginal product of any input

is the increase in output arising from an additional unit of that input, holding all other inputs constant

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

lemonade mix

Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To invest in her factory, she withdrew $20,000 from her savings, which paid 3 percent interest, and borrowed $30,000 from her uncle, whom she pays 3 percent interest per year. Last year she paid $25,000 for ingredients and had revenue of $60,000. She asked Louis the accountant and Greg the economist to calculate her profit for her.

louis say her profit is 34,100 and greg says she lost 6,500

When a firm's only variable input is labor, then the slope of the production function measures the

marginal product of labor

the value of a business own's time is an example of

opportunity cost

diminishing marginal product suggest that the marginal

product of an extra worker is less than the previous worker's marginal product

A total-cost curve shows the relationship between the

quantity of output produced and the total cost of production

John owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements?

the cost of shoe polish

When a firm is making a profit-maximizing production decision, which of the following principles of economics is likely to be most important to the firm's decision?

the cost of something is what you give up to get it

which of these assumptions is often realistic for a firm in the short run

the firm can vary the number of workers it employs, but not the size of its factory

which of the following is an implicit cost?

the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm

which of the following can be added to profit to obtain total revenue?

total cost

average total cost is equal to

total cost/output

economists assume that the goal of the firm is to maximize

total profits

accounting profit is equal to

total revenue minus the explicit cost of producing goods and services

when a firm is able to put idle equipment to use by hiring another worker

variable costs will rise

in the short run, a firm incurs fixed costs

whether it produces output or not

economic profit

will never exceed accounting profit

when calculating a firm's profit, an economist

will subtract only the opportunity costs from total revenue since these include both the implicit and explicit cost of the firm