Quiz 5 21,22,23

(Figure: Short-Run Costs II) Examine the figure Short-Run Costs II. At six units of output, average variable cost is approximately:

$120

(Table: Total Cost Data) Examine the table Total Cost Data. The table shows cost data for a bicycle firm operating in the short run. What is the total variable cost for this firm when the firm produces five bicycles?

$190

Suppose that the first four workers generate corresponding total outputs of baby diapers of 200, 350, 450, and 500, respectively. The marginal product of the second worker is:

150

(Table: Tonya's Production Function for Apples) Examine the table Tonya's Production Function for Apples. The marginal product of the fourth worker is _____ apples.

5

(Figure: Short-Run Costs II) Examine the figure Short-Run Costs II. Curve 3 is the _____ cost curve.

Average variable

If marginal cost is equal to average total cost, then:

average total cost is at its minimum

(Figure: Long-Run Average Cost) Examine the figure Long-Run Average Cost. This firm has _____ in the output region from B to C.

diseconomies of scale

A firm finds that its long-run average total costs increase as it produces more output. This firm is experiencing:

diseconomies of scale

When Caroline's dress factory hires two workers, the total product is 50 dresses. When she hires three workers, total product is 60, and when she hires four workers, total product is 65. The slope of the marginal product curve when two to four workers are hired is:

downward sloping

If a firm has lower costs per unit as it increases production in the long run, this is an example of:

increasing returns to scale

If a firm is operating in the negatively sloped portion of a long-run average total cost curve, then production exhibits:

increasing returns to scale

In the short run:

some inputs are fixed and some are variable

(Table: Costs of Producing Bagels) Examine the table Costs of Producing Bagels. Marginal cost reaches its minimum value for the _____ bagel.

third

A curve that shows the quantities of output that can be obtained from different quantities of a variable input, assuming other inputs are fixed, is called the _____ curve.

total product

Average variable cost is:

total variable cost divided by quantity