PrQ11: Practice Quiz - Ch. 11: Behind the Supply Curve: Inputs and Costs

(Figure: Short-Run Costs for Wallets) Use Figure: Short-Run Costs for Wallets. Curve 1 crosses the average variable cost curve at:

3 units of output.

(Figure: Long-Run Average cost for Leila's Light Store) Use Figure: Long-Run Average cost for Leila's Light Store. Leila has _____ in the output region from A to B.

constant returns to scale

(Figure: The Cost Curves for Charlie's Cookie Confections) Use Figure: The Cost Curves for Charlie's Cookie Confections. The curve labeled V represents the firm's _____ cost curve.

marginal

(Table: Barbara's Production Function for Hockey Jerseys) Use Table: Barbara's Production Function for Hockey Jerseys. The costs that vary with Barbara's level of production are her: Table: Barbara's Production Function for Hockey Jerseys Number of Sewing Machines Number of Hockey Jerseys 1 0 2 75 3 150 4 250 5 325 6 375

variable costs.

(Figure and Table: Variable, Fixed, and Total Costs for Buckwheat) Use Figure and Table: Variable, Fixed, and Total Costs for Buckwheat. When 64 bushels of buckwheat are produced, the average variable cost is _____, the average fixed cost is _____, and the average total cost is _____. Points on GraphQuantity of Labor (workers), LQuantity of Buckwheat (bushels), QVariable Cost, VCFixed Cost, FCTotal Cost, TC = FC + VCA00$0$400$400B119200400600C236400400800D3516004001,000E4648004001,200F5751,0004001,400G6841,2004001,600H7911,4004001,800I8961,6004002,000

$12.50; $6.25; $18.75

(Figure and Table: Variable, Fixed, and Total Costs for Buckwheat) Use Figure and Table: Variable, Fixed, and Total Costs for Buckwheat. When 75 bushels of buckwheat are produced, the average variable cost is _____, the average fixed cost is _____, and the average total cost is _____. Points on GraphQuantity of Labor (workers), LQuantity of Buckwheat (bushels), QVariable Cost, VCFixed Cost, FCTotal Cost, TC = FC + VCA00$0$400$400B119200400600C236400400800D3516004001,000E4648004001,200F5751,0004001,400G6841,2004001,600H7911,4004001,800I8961,6004002,000

$13.33; $5.33; $18.67

Lenore's puppy pampering salon has a total cost curve expressed by the equation TC = 100 + 3Q2, where Q is the quantity of dogs pampered. Given this expression, if Lenore pampers five dogs, her total costs will be:

$175.

Ashley Furniture expects its marginal cost curve to eventually slope upward because, as with most production processes, furniture manufacturing has:

diminishing marginal returns.

The eventual increase in AVC as output increases is the _____ effect.

diminishing returns

Gabriella's company produces wet suits for scuba divers. The long-run average total cost of producing 250 wet suits is $56, while the long-run average total cost of producing 270 wet suits is $36. These numbers suggest that between output levels of 250 and 270 wet suits, Gabriella is experiencing:

economies of scale.

You run a business producing paintings. This month, your total cost of production is $10,000, your variable cost is $6,000, and you produce 3,000 paintings. It follows that your average _____ cost is _____.

variable; $2

When Emily's computer factory hires two workers, the total product is 250 computers. When Emily hires three workers, the total product is 260 computers. And when she hires four workers, the total product is 265 computers. The slope of the marginal product curve between two and four workers hired is:

negative.

(Figure: Marginal Product of Labor for Quinoa Production) Use Figure: Marginal Product of Labor for Quinoa Production. The total product, given six workers, is _____ bushels.

84

(Table: Cost Data for Handbags at Horatio's Handbag Factory) Use Table: Cost Data for Handbags at Horatio's Handbag Factory. The marginal cost of producing the fourth handbag is: Table: Cost Data for Handbags at Horatio's Handbag FactoryNumber of HandbagsVariable Cost of Handbags (VC)Total Cost of Handbags (TC)005015010027012031001504140190519024062503007320370

$40.

(Table: Total Cost Data for Pool Cleaning Firm) Use Table: Total Cost Data Table: Total Cost Data for Pool Cleaning Firm. What is the fixed cost for this pool cleaning firm? Table: Total Cost Data for Pool Cleaning FirmNumber of PoolsVariable Cost (VC)Total Cost (TC)0$0$5015010027012031001504140190524062503007320370

$50

(Table: Production Function for Quinoa) Use Table: Production Function for Quinoa. Assume that the fixed input consists of 10 acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $100 per worker per day. The total cost of producing 75 bushels of quinoa is: Table: Production Function for QuinoaNumber of WorkersBushels of Quinoa00125245360470575

$650.

(Table: Production of Bagels at The Bagel Factory) Use Table: Production of Bagels at The Bagel Factory. The marginal product of the eighth worker is _____ bagels. Table: Production of Bagels at The Bagel FactoryWorkers per DayDozens of Bagels per Day0015215330442551657760850957

10 dozen

The marginal cost curve intersects the average variable cost curve at:

its lowest point.

(Table: Production of Artisanal Cabinets) Use Table: The Production of Artisanal cabinets. After the _____ worker, the firm begins to experience diminishing returns to labor. Table: Production of CabinetsQuantity of Labor (workers)Quantity of CabinetsMarginal Product of Labor (cabinets per worker)00155211631654204523362527261825-1

second

The larger the output, the more output over which the fixed cost is distributed. Called the _____ effect, this leads to a _____ average fixed cost as output rises.

spreading; lower