Econ2302 Ch.9
Answer the question on the basis of the following cost data. If the firm closed down and the short run and produce zero units of output the total cost would be
$50
Answer the question on the basis of the following cost data. Total fixed cost is
$50.00
Answer the question on the basis of the following cause data. The marginal cost of producing the sixth unit of output is
$8
In the diagram it is assumed that
All cost are variable
Fixed cost is
Any clothes that does not change when the firm changes its output
Marginal Product
may initially increase, then diminish, and ultimately become negative.
The law of diminishing returns describes the
relationship between resource inputs and product outputs in the short run
The basic characteristics of the short run is that
the firm does not have sufficient time to change the size of its plant.
When diseconomies of scale occur:
the long-run average total cost curve rises.
Economic cost can be defined as
the payment that must be made to obtain and retain the services of a resource
The diagram suggests that:
when marginal product lies above average product, average product is rising.
The basic difference between the short run and the long run is that
At least one resource is fixed in the short run while all resources are variable in the long run
Refer to the diagram constant returns to scale
Begin at output Q3
Economic profits are calculated by subtracting
explicit and implicit costs from total revenue.
Refer to the diagram. Minimum efficient scale
is achieved at Q1
The fixed cost of the firm is $500. The firm total variable cost is indicated in the table. The average variable cost of the firm when 5 units of output are produced is
$400
Assume that in the short run a firm is producing 100 units of output has average total cost of 200 and has average variable cost of 150 then firms total fixed cost are
$5,000
Suppose that a business incured implicit cost of $500,000 and explicit cost of 5 million in a specific year if the firm sold 100,000 units of its output at $50 per unit it's accounting
Profits were zero and its economic losses were 500,000
Refer to the diagram, where variable inputs of Labor are being added to a constant amount of property resources. Average variable cost will be at a minimum when the firm is hiring
Q2 workers
Use see following data to answer the question. Marginal product becomes negative with the hiring of the _____ unit of Labor
Seventh
Answer the question on the basis of the company table in the show average that cost ATC for a manufacturing firm whose total fixed cost or $10. The average bear will cost a four units of output is
$28.50
Answer the question on the basis of the following cost data the total cost of four units of output is
$310
Answer the question on the basis of the following cause data. The total variable cost of producing 5 units is
$37
Suppose that a business incured implicit cost of $200,000 and explicit cost of $1 million in a specific year if the firm sold 4000 units of its output at $300 per unit accounting profits were
$200,000 and its economic profits were $0
Answer the question on the basis of the following cost data. The average total cost of producing 3 units of output is
$16
As the firm in the diagram expands from plant size #1 to plant size #3, it experiences:
Diseconomics of scale
As the firm in the diagram expands from plant size #1 to plant size #3 it experiences
Economies of scale
To the economist, total cost includes
Explicit and implicit costs
Cash expenditures a firm incurs to pay for resources are called
Explicit costs
The short run is characterized by
Fixed plant capacity
If you owned a small form which of the following would most likely be a fixed cost?
Hail insurance
Maria's Mexican cantina is a restaurant that has been around for 30 years. In that time they have remained in the same building and only change inputs such as staff and the menu. Based on this we can conclude that Maria's
Has only operated in the long run even though it chose to keep the building and put fixed
If a firm decides to produce no output in the short one it's caused will be
It's fixed cost
If a firm wanted to know how much it would save by producing one less unit of output it would look to
MC
The total output of a firm will be at a maximum where
MP is zero
The first second and third workers employed by a firm at 24, 18 and 9 units to the total product respectively therefore we can conclude that
Marginal product on the third worker is 9
Implicit cost are
Opportunity cost of self-employed resources
Refer to the provided graph which shows the total products TP curve. At which points is the marginal products zero?
Point b
Normal profit is
The return to the entrepreneur when economic profits are zero
In the diagram curves 1, 2 and 3 represent
Total fixed cost total variable cost and total cost respectively
Answer the question on the basis of the following output data for a firm. Assume that the amount of a non labor resources are fixed. Average product is at a maximum when
Two workers are hired
Economies and this economies of scale explain
Why the firm's long run average total cost curve is U-shape