chap 7 hw

Which of these occurs in the long run?

A new movie theater is built.

(Table) Based on the table, _____ is the total cost when producing twenty-one units.

$1,850

If the total cost of 3 units is $40 and the total cost of 4 units is $50, the marginal cost of the fourth unit is:

$10.

If the total variable cost of producing three wickets is $30, while the average fixed cost of producing three wickets is $25, then the total cost of producing three wickets is:

$105.

Figure) The figure shows the cost curves for a representative firm. At an output level of five units, the average fixed, variable, and average total costs, respectively, would be:

$40; $80; $120

AJ plans to attend a retreat on mindfulness. He paid a $500 nonrefundable registration fee, made a reservation at a hotel that costs $200, and budgeted $150 for gas and food. Two days before the retreat, he becomes ill. Assuming he is able to cancel the hotel without penalty, AJ's sunk cost equals:

$500

Table) Based on the table, _____ is the average variable cost when output is twelve units.

$75.00

Dan's Car Wash produces $150,000 in revenues and incurs $120,000 in labor wages, materials, rent, and other explicit costs. Moreover, Dan gave up a $40,000-a-year job as a hotel valet to start his car wash business. Dan's economic profit is _____, and he _____ earning a normal profit.

-$10,000; is not

The value of "U" in the chart below is:

12

A wedding planner determines that one waiter can serve 30 guests, two waiters can serve 70 guests, three waiters can serve 120 guests, four waiters can serve 160 guests, and five waiters can serve 180 guests. The marginal product of the third waiter is _____ guests.

50

Which statement is NOT a characteristic of a corporation?

Its investors face unlimited liability.

Based on the data provided in the table, which would be the correct total product curve associated with the data?

Peak at (12,130)

Which statement describes a situation in which negative returns to labor occur.

The marginal product of labor falls below zero.

Which of the inputs can be altered in the short run?

The number of hours that existing employees work.

Which statement is true regarding the total product and marginal product curves?

The total product curve reaches its peak when marginal product is zero.

On a graph of the long-run average total cost curve, constant returns to scale are shown as:

constant average costs as output expands.

In the short run, if output is zero, then total costs are:

equal to fixed costs.

Justin owns a home entertainment installation company. One employee can complete two installations per month; two employees can complete 5 installations, three employees can complete 9 installations, four employees can complete 12 installations, and five employees can complete 11 installations. Diminishing marginal returns begin with the _____ worker.

fourth

Which of these does NOT lead to economies of scale?

increased bureaucratization

Amy decides to open a bakery that will specialize in delicious gourmet brownies. Her explicit costs would include all of these EXCEPT the:

interest earnings Amy forgoes from selling her savings bonds to finance her