short-Run Production and Cost

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

If the difference between average total cost (ATC) and average variable cost (AVC) at 100 units of output is $1.00, then at 300 units of output the difference between ATC and AVC must be:

$.33

Economists (and Econ 165 students) are primarily interested in the relationship between production and costs because:

along with an assumption of profit maximization, this relationship allows us to predict how firms will act under different circumstances.

Short-run average variable costs:

are only at a minimum when labor is, on average, most productive.

Short-run average total costs eventually rise because of:

diminishing marginal and average productivity of the variable input(s).

Assuming that labor is the only short-run variable input in the production process, AVC (average variable cost):

equals the wage rate (w) times labor (L) divided by output (Q) [(wL)/Q.]

When the short-run total product curve (the production function) for a firm:

increases but at an increasing rate, the MPL is above (greater than) the APL.

If average fixed cost is declining, then:

it is impossible to determine what is happening to MC, AVC, or ATC without more information.

All of the following describe marginal cost except marginal cost is (does) not:

positively related to the short-run marginal product of labor (MPL).

In the short-run, a profit-maximizing firm will produce additional units of a product as long as:

price at least covers average variable cost.

Short run cost curves are U-shaped due to:

the returns to specialization of labor that occurs at low production levels and the congestion that occurs at high production levels.

If we know that capital is fixed and a business firm can produce 36 units of output per day with 3 workers and 44 units of output per day with 4 workers, then we know all of the following except:

we know all of the above.

Which of the following does not reflect a short-run decision?

Should a new plant be built if sales increase?

In the short run, the firm's production curves exhibit all of the following relationships except:

TPL begins to decrease when APL begins to decrease.


संबंधित स्टडी सेट्स

BIOCHEM BIBLE MCQ, El grande finale MCQ, Midterm 1, Open Midterm 5, MCQ Midterm 5, Biochem notes coll 4, MIDTERM 4 MCQ, MIDTERM 4, MIDTERM 3 MCQ, MIDTERM 3, Biochem coll II MCQ, MIDTERM 2, Amino Acids, FINAL, Finals 2018, Midterm 4, Midterm 3, midter...

View Set

financial management ch8: Stock Valuation

View Set

MGMT-464: Chapter 10 - Managing Conflict and Negotiations

View Set

(week 3) Chapter 12 ,13, 3 Nelson & Staggers

View Set

BIO182 Chapter 01 MasteringBiology Homework

View Set

FDIC Accounting Exam 1, Chapters 1-3

View Set

physical assessment exam 1 study guide

View Set