sfasda3

The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then its implicit costs must be

$50

Diminishing marginal returns implies

A) increasing marginal costs.

If labor is a variable input in production, the law of diminishing marginal returns implies that in the short run

A) laborʹs marginal product decreases after a certain point.

Marginal cost is the

A)increase in total cost resulting from producing one more unit of output.

Marginal utility is the _____ satisfaction gained by consuming _____ of a good

Additional; one more unit

A firm ________ if it earns zero economic profit.

B) earns exactly a normal rate of return

If the wage rate is less than the marginal revenue product of labor, the firm should ________ to maximize profits.

B) hire more labor and produce more

If labor and capital are complementary in production and a technological advance increases the productivity of capital, then, ceteris paribus,

B) labor productivity is likely to rise

In the short run average costs eventually increase because of ________, and in the long run average costs eventually increase because of ________.

B)diminishing returns; diseconomies of scale

The marginal revenue product

Both, the product of the marginal product of labor and the price of the output. Also measures the benefit to the firm from hiring an additional unit of labor.

The rising part of a perfectly competitive firm's ________ cost curve is the firm's short-run ________ curve.

C) marginal; supply

According to the U.S. Bureau of Labor Statistics, "women's earnings is 80% of men's". Specifically, women's average weekly earnings is 80% of men's average weekly earnings. This statistic is commonly referred to as the "Gender Wage Gap". From this statistic alone, we can:

Infer none of the above.

______ are likely a fixed cost of a firm.

Lease payments for an office

if we assume the labor is the only variable input, the slope of the shortrun total product curve

Measures the marginal product of labor

The formula for total fixed cost is

TFC=TC-TVC

The formula for the marginal product of labor is

change in Q / Change in L

If industry supply increases while the industry demand remains the same, then an individual firm in a perfectly competitive industry currently earning positive profits will see its profits

no change

if an idividual perfectly competitive firm charges a price above the inustry equilibrium price, the firm will

not sell any of what it produces

The main decision for a profit maximizing perfectly competitive firm is NOT what ________ but what ________.

price to charge; level of output to produce

Salaries of NFL quarterbacks, like Tom Brady, are

related to the additional revenues team owners expect to enjoy as a result of having them on a team roster.

Job is consuming X and Y so that he is spending his entire incume and MUx/Px=4 and Pu/y=4. To maximize utility, he should consume.

the same amount of X and Y since he is already maximizing utility.