ECON

During the previous​ month, a firm produced 350 tablet devices at an average variable cost of ​$37 and at an average fixed cost of ​$14. During the​ month, the​ firm's total costs were ​$

17850

At the end of the​ year, a firm produced 10,000 laptop computers. Its total costs were ​$8 ​million, and its fixed costs were ​$5 million. Part 2 What are the average variable costs of this​ firm?

300

Anthony​'s Chair Factory currently employs 50 ​workers, who produce 500 chairs. If Anthony hires a 51st ​worker, output will rise to 550. What is the marginal product of the 51st ​worker?

50

Chair Factory currently employs 100 ​workers, who produce 700 chairs. If Mark hires a 101st ​worker, output will rise to 800. What is the average product of the 101st ​worker?

7.92

During the previous​ month, a firm produced 500 tablet devices and its total costs were ​$30,000. Just before the firm produced its last tablet device in the previous​ month, its total costs were ​$29,918. The marginal cost incurred by the firm in producing the final tablet device that month was ​$

82

Which of the following is a correct statement about the short run in​ economics?

At least one input cannot be changed.

Which of the following statements describes a​ firm's long-run average cost​ curve?

A​ U-shaped curve that represents the minimum unit cost of producing any given rate of output.

At which point does marginal product begin to diminish for the manufacturer of portable power​ banks?

Between 22 and 33 workers per week capture 11

The graph to the right shows the​ long-run average cost​ (LAC) for a firm. ​1.) Using the point drawing tool​, identify the minimum efficient scale. Label it​ 'A'. ​2.) Using the point drawing tool​, identify the point where the firm begins to experience diseconomies of scale. Label it​ 'B'. Part 2

CAP 44

n the table​ above, diminishing returns begins with the addition of worker number 4 In the table​ above, the marginal product becomes negative when the 6th worker is added.

CAP14

The cost structure of a manufacturer of microchips is described in the table shown below. The​ firm's fixed costs equal ​$15​,000 per day. Calculate the average variable cost​, average fixed cost​, and average total cost at each output level. ​(Your answers should be rounded to the nearest cent.​)

CAP29

The diagram to the right displays​ short-run cost curves for a facility that produces liquid crystal display​ (LCD) screens for cell phones. Part 2 a. What are the daily total fixed costs of producing 300 LCD​ screens? ​$999 ​(Round your answer to the nearest penny.​) Part 3 b. What are the total variable costs of producing 300 LCD screens per​ day? ​$1275(Round your answer to the nearest penny.​) Part 4 c. What are the total costs of producing 300 LCD screens per​ day? ​$2274 ​(Round your answer to the nearest penny.​) Part 5 d. What is the average total cost of producing 300 LCD​ screens? ​$7.58​(Round your answer to the nearest penny.​)

CAP30

​1.) Using the​ 4-point curved line drawing tool​, draw the marginal product​ curve, and label this line​ 'MP'. ​2.) Using the​ 4-point curved line drawing tool​, draw the average product​ curve, and label this line​ 'AP'. ​(For your control​ points, use​ 1,3, 4, and 7 units of​ labor.) Part 3 Carefully follow the instructions​ above, and only draw the required objects. Part 4 If the wage is ​$19 per hour and the marginal product is 9units per​ hour, then marginal cost is ​$2.11

CAP31

The following table shows the daily relationship between the number of workers and output​ (Q) for a small factory in the short​ run, with capital held constant. Each worker costs ​$100 per​ day, and the firm has fixed costs of ​$25 per day. Calculate total cost​ (TC), marginal cost​ (MC), and average total cost​ (ATC). ​(Round your answers to two decimal​ places

CAP32

A manufacturing firm with a single plant is contemplating changing its plant size. It must choose from among seven alternative plant sizes. In the​ table, plant size A is the smallest it might​ build, and size G is the largest.​ Currently, the​ firm's plant size is B. Part 2 At plant size​ B, this firm is currently experiencing economies of of scale. Part 3 What is the​ firm's minimum efficient​ scale? c

CAP33

Consider the​ long-run average cost curve to the right. Using the point drawing tool​, plot a point along​ (on) this curve within the region of economies of scale. Label the point​ 'A'.

CAP41

Consider the​ long-run average cost curve to the right. Using the point drawing​ tool, plot the point of minimum efficient scale​ (MES) and label this point MES.

CAP42

Using the​ 3-point curved line drawing tool​, draw a possible​ long-run average cost curve for a firm that always experiences diseconomies of scale no matter what plant size it selects. Label this curve​ 'ATC'.

CAP43

In the table to the​ right, fill in the the values for the Marginal Product of Labor.

CAPTURE13

Consider the figure to the right. Suppose that the current scale of output for a typical firm facing this LAC​ curve, which applies to all firms in this​ industry, is between points A and B​, at about 500 units per period. If a new firm entering the industry desires to produce at the minimum efficient​ scale, would it wish to produce 50 units per​ period, 500 units per​ period, or 700 units per​ period? Explain. Part 2 By​ definition, minimum efficient scale is the lowest rate of output per period that minimizes​ long-run average cost.​ However, each of the three output rates is consistent with minimized​ long-run average cost.​ Hence, a new firm entering the industry will wish to produce at any rate exceeding 50and less than 700 units of output per period

CAPTURE35

If total product is increasing at a decreasing​ rate, then marginal product is

DECREASING

Consider the figure to the right. Suppose that the firm decreases its scale of operations from a level consistent with​ short-run average cost curve SAC3 to​ short-run average cost curve SAC1. Explain what happens with respect to economies or diseconomies of scale. Part 2 ​Initially, at the scale consistent with SAC3​, the firm was operating along the upward​-sloping portion of its​ long-run average cost​ curve, so it experienced diseconomies of scale. After decreasing its scale of output to the level consistent with SAC1​, the firm now operates along the downward​-sloping portion of the LAC​ curve, so it is experiencing economies of scale. ​Initially, at the scale consistent with SAC2​, the firm was operating along the constant ​-sloping portion of its​ long-run average cost​ curve, so it experienced constant returns to scale. After increasing its scale of output to the level consistent with SAC3​, the firm now operates along the upward ​-sloping portion of the LAC​ curve, so it is experiencing diseconomies of scale.

Initially, at the scale consistent with SAC2​, the firm was operating along the constant​-sloping portion of its​ long-run average cost​ curve, so it experienced constant returns to scale. After increasing its scale of output to the level consistent with SAC3​, the firm now operates along the upward​-sloping portion of the LAC​ curve, so it is experiencing diseconomies of scale. CAPTURE34

At the point of​ saturation, total product has reached its maximum. If marginal product is​ increasing, total product​ ________, and if marginal product is​ decreasing, total product​ ________.

TRUE......must be​ increasing, may be increasing or decreasing

The short run is a time period during which at least one input cannot be altered. A typical input that cannot be changed in the short run is a​ firm's plant size.

The long run is a time period in which all inputs can be varied

The short run is defined as

The period of time in which at least one factor of production is fixed.

Which of the following is true about the​ long-run average cost​ curve?

The​ long-run average cost curve is the envelope of the​ firm's short-run average cost curves.

In the long run

all factors of production are variable.

The long run is any time period where

all inputs can be changed.

In the long run there

are only variable inputs.

The short run is any time period where

at least one input cannot be changed

The following table shows the relationship between workers and output for a small factory in the short​ run, with capital held constant. Find the marginal product of labor ​(MPL​). for this​ firm, diminishing marginal returns set in after worker 33 is employed.

cap22

The​ short-run production function for a manufacturer of portable power banks is shown at the right. Based on this​ information, calculate the marginal product at each quantity of labor. ​(Your answers should be whole numbers​)

capture 10

onsider the figures to the right. Suppose that the firm decided to consider employing a 12th unit of​ labor, which it has determined would result in a decrease in total product from 380 units of output​ (employing 11 units of​ labor) to 355 units of output. If it were to do​ this, what would be the resulting average product of labor and marginal product of​ labor? Part 2 If the firm were to employ a 12th unit of​ labor, the average product of labor would be 29.7 units of output per unit of labor and the marginal product of labor would be negative −25.0 units of output per unit of labor. ​(Enter your responses rounded to one dec

capture 12

The​ short-run production function for a manufacturer of portable power banks is shown at the right. Based on this​ information, calculate the average product at each quantity of labor

capture 9

In the short​ run, if a firm continues to add​ workers, marginal product must begin to diminish because

each worker has less capital to work with.

From the perspective of the​ firm, what is the difference between the short run and the long​ run?

in the short​ run, at least one input is​ fixed, while in the long run all inputs are variable.

The law of diminishing marginal returns shows the relationship between

inputs and outputs for a firm in the short run.

If a firm hires an additional worker and discovers that its total output has​ fallen, then it must be true that

marginal product is negative.

The law of diminishing marginal returns is caused by Part 2

the existence of a fixed input that must be combined with increasing amounts of the variable input.

When the​ long-run average cost curve is falling

the firm is experiencing economies of scale.

In​ economics, the planning horizon is defined as

the long​ run, during which all inputs are variable.

The minimum possible​ short-run average costs are equal to​ long-run average costs when

the​ long-run curve is at a minimum point.