Final Exam Quiz Questions

Taylor sells 400 candy bars at $0.50 each. Her total costs are $125. Her profits are

$75

The following table shows the production costs for The Flying Elvis Copter Rides. Refer to Table 13-7. What is the value of B?

100

Suppose a certain firm is able to produce 125 units of output per day when 19 workers are hired. The firm is able to produce 137 units of output per day when 20 workers are hired, holding other inputs fixed. The marginal product of the 20th worker is

12 units of output

Refer to Table 13-1. What is total output when 1 worker is hired?

30

Kate is a florist. Kate can arrange 20 bouquets per day. She is considering hiring her husband William to work for her. William can arrange 18 bouquets per day. What would be the total daily output of Kate's firm if she hired her husband?

38 bouquets

Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker is

8 units of output.

Total revenue equals

PxQ

Suppose that for a particular business there are no implicit costs. Then

accounting profit will be the same as economic profit.

Suppose that a firm's long-run average total costs of producing smart phones increases as it produces between 50,000 and 60,000 smart phones. For this range of output, the firm is experiencing

diseconomies of scale

If long-run average total cost decreases as the quantity of output increases, the firm is experiencing

economies of scale

A firm's opportunity costs of production are equal to its

explicit costs + implicit costs.

Suppose that a "doggie day care" firm uses only two inputs: hourly workers (labor) and a building (capital). In the short run, the firm most likely considers

labor to be variable and capital to be fixed.

When a firm experiences diseconomies of scale,

long-run average total cost increases as output increases.

When a firm experiences constant returns to scale,

long-run average total cost is unchanged, even when output increases.

Total cost is the

market value of the inputs a firm uses in production.

Refer to Figure 13-1. The graph illustrates a typical

production function.

The most likely explanation for economies of scale is

specialization of labor

If a firm uses labor to produce output, the firm's production function depicts the relationship between

the number of workers and the quantity of output.