FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: The Costs of Production

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 171

True/False

Review LaterAdd Note

Review Later

Several related measures of cost can be derived from a firm's total cost.

A) True
B) False

Correct Answer

verified

Show Answer

Question 172

Multiple Choice

Review LaterAdd Note

Review Later

Scenario 13-12 Ariana withdrew $400,000 out of her personal savings account and used it to start her new Internet cafe. The savings account pays 3 percent interest per year. During the first year of her business, Ariana sold 2,000 cups of coffee for $2.50 per cup and 4,000 hours of Internet time, also at $2.50 per hour. During the first year, the business made monetary outlays of $9,000. You may assume that there is no opportunity cost to Ariana's time. -Refer to Scenario 13-12. Ariana's economic profit for the year was

A) $-394,000.
B) $-6,000.
C) $3,000.
D) $6,000.

E) B) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 173

Multiple Choice

Review LaterAdd Note

Table 13-1 -Refer to Table 13-1. What is total output when 2 workers are hired?

Table 13-14 -Refer to Table 13-14. What is the average total cost of producing 6 units of output?

On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product?

Which of the following expressions is correct?

Table 13-13 Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. -Refer to Table 13-13. What is the marginal cost of creating the tenth instructional module in a given month?

Brady Industries has average variable costs of $1 and average total costs of $3 when it produces 500 units of output. The firm's total fixed costs equal

Table 13-18 -Refer to Table 13-18. What is the shape of the average-total-cost curve?

As a firm moves along its long-run average cost curve, it is adjusting the size of its factory to the quantity of production.

Which of the following is an example of an implicit cost? (i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm (ii) interest paid on the firm's debt (iii) rent paid by the firm to lease office space

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

Industrial organization is the study of

Shelley's Salsa produces and sells organic salsa. Last year it sold 3 million tubs of salsa at a price of $3 per tub. For last year, the firm's

The average-total-cost curve intersects

Implicit costs are costs that do not require an outlay of money by the firm.

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

Table 13-7 The Flying Elvis Copter Rides -Refer to Table 13-7. What is the value of K?

Scenario 13-13 Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000. The annual explicit costs of the materials used to make the cookie jars are $54,000. -Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer. What is the annual economic profit of her cookie jar business?

If the average-total-cost of producing five units is $10, and the marginal-cost of producing the fifth unit is $10, then the average-total-cost curve is at its minimum at five units.​