FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: The Costs of Production

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 231

Multiple Choice

Review LaterAdd Note

Review Later

Explicit costs

A) require an outlay of money by the firm.
B) include all of the firm's opportunity costs.
C) include the value of the business owner's time.
D) Both b and c are correct.

E) All of the above
F) B) and C)

Correct Answer

verified

Show Answer

Question 232

Multiple Choice

Review LaterAdd Note

Review Later

Table 12-12 Betty's Bakery -Refer to Table 12-12.What is the variable cost of producing 5 cakes at Betty's Bakery?

A) $64
B) $85
C) $90
D) $100

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

Correct Answer

verified

Show Answer

Question 233

Multiple Choice

Review LaterAdd Note

The long-run average total cost curve is always

Scenario 12-6 Tony is a wheat farmer,but he also spends part of his day teaching guitar lessons.Due to the popularity of his local country western band,Farmer Tony has more students requesting lessons than he has time for if he is to also maintain his farming business.Farmer Tony charges $25 an hour for his guitar lessons.One spring day,he spends 10 hours in his fields planting $130 worth of seeds on his farm.He expects that the seeds he planted will yield $300 worth of wheat. -Refer to Scenario 12-6.Tony's accountant would calculate the total cost of his farming to equal

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

A key difference between accountants and economists is their different treatment of the cost of capital.Does this cause an accountant's estimate of total costs to be higher or lower than an economist's estimate? Explain.

If a firm produces nothing,which of the following costs will be zero?

Figure 12-9 The figure below depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 12-9.Which curve represents the long-run average total cost?

Table 12-7 The Flying Elvis Copter Rides -Refer to Table 12-7.What is the value of F?

For a large firm that produces and sells automobiles,which of the following costs would be a variable cost?

If long-run average total cost is rising,then the firm is experiencing economies of scale.

Explicit costs

If the marginal-cost curve is rising,then so is the average-total-cost curve.

Scenario 12-16 A certain firm produces and sells staplers.Last year,it produced 7,000 staplers and sold each stapler for $6.In producing the 7,000 staplers,it incurred variable costs of $28,000 and a total cost of $45,000. -Refer to Scenario 12-16.In producing the 7,000 staplers,the firm's average fixed cost was

Suppose that a firm has only one variable input,labor,and firm output is zero when labor is zero.When the firm hires 6 workers the firm produces 90 units of output.Fixed costs of production are $6 and the variable cost per unit of labor is $10.The marginal product of the seventh unit of labor is 4.Given this information,what is the average total cost of production when the firm hires 7 workers?

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

Table 12-7 The Flying Elvis Copter Rides -Refer to Table 12-7.What is the value of N?

Scenario 12-16 A certain firm produces and sells staplers.Last year,it produced 7,000 staplers and sold each stapler for $6.In producing the 7,000 staplers,it incurred variable costs of $28,000 and a total cost of $45,000. -Refer to Scenario 12-16.In producing the 7,000 staplers,the firm's average total cost was

Scenario 12-15 Farmer Jack is a watermelon farmer.If Jack plants no seeds on his farm,he gets no harvest.If he plants 1 bag of seeds,he gets 30 watermelons.If he plants 2 bags of seeds,he gets 50 watermelons.If he plants 3 bags of seeds he gets 60 watermelons.A bag of seeds costs $100,and the costs of seeds are his only costs. -Refer to Scenario 12-15.Which of the following statements is (are) true? (i) Farmer Jack experiences decreasing marginal product. (ii) Farmer Jack's production function is nonlinear. (iii) Farmer Jack's total cost curve is linear.

Figure 12-2 -Refer to Figure 12-2.The graph illustrates a typical