FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: The Costs of Production

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

For a firm, the production function represents the relationship between

A) implicit costs and explicit costs.
B) quantity of inputs and total cost.
C) quantity of inputs and quantity of output.
D) quantity of output and total cost.

E) C) and D)
F) A) and D)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

The amount of money that a firm receives from the sale of its output is called

A) total gross profit.
B) total net profit.
C) total revenue.
D) net revenue.

E) C) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

A dairy produces and sells organic milk. Last year it sold 500,000 gallons of milk at a price of $7 per gallon. For last year, the firm's

Table 13-19 -Refer to Table 13-19. What is the shape of the average-variable-cost curve?

Scenario 13-8 Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. -Refer to Scenario 13-8. What are Wanda's explicit costs per glass?

Table 13-18 -Refer to Table 13-18. What is the average fixed cost of producing 450 units of output?

Assume Jack received all As in his classes last semester. If Jack gets all Bs in his classes this semester, his GPA may or may not fall.

In setting the production level, a firm's cost curves

Diminishing marginal productivity implies decreasing total product.

The average-fixed-cost curve is constant.

In the long run, a firm that produces and sells textbooks gets to choose

Variable costs usually change as the firm alters the quantity of output produced.

The most likely explanation for economies of scale is

Table 13-6 Wooden Chair Factory -Refer to Table 13-6. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is$20 per day regardless of the number of chairs produced. Assume the number of machines does not change. If the factory produces at a rate of 78 chairs per hour, what is the total machine cost per day?

Scenario 13-10 Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. -Refer to Scenario 13-10. An economist would calculate the total profit for one photo frame to be

When adding another unit of labor leads to an increase in output that is smaller than the increases in output that resulted from adding previous units of labor, the firm is experiencing

Implicit costs

Figure 13-10 -Refer to Figure 13-10. The firm experiences diseconomies of scale if it changes its level of output from

Total cost is the

Scenario 13-9 Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. -Refer to Scenario 13-9. According to Ellie's accountant, which of the following revenue totals will yield her business $50,000 in profits?