Question

PROBLEM 1)

labor workers...............output....................TFC (dollar)................TVC

0....................................0...............................20...........................0

1.....................................4................................20..........................25

2..................................9..................................20............................50

3..................................13..................................20.............................75

4...................................16..................................20.............................100

5...................................18..................................20............................125

a) The above table shows a firm's: • short-run and long-run
costs. • long-run costs. • short-run costs. • More information is
needed to determine if the costs are long-run costs or short-run
costs.

b) Using the data in the above table, when output increases from 4
to 9 units, the marginal cost of one of those 5 units is: • $4.25.
• $4.00. • $6.25. • $5.00.

Answer #1

Answer 1

(a)

In short run a firm hires some input which is fixed and because of this firm incurs some fixed cost is the long run while in the long run all inputs are variable and thus not incurs fixed cost in the long run.

Here firm is incurring a total fixed cost(TFC) of 20 and thus this is the short run situation.

Hence, the correct answer is **(c) short run
costs**

(b)

Marginal cost = (Change in TC)/Change in Output

Here, Output increases from 4 to 9 => Change in Output = 9 - 4 = 5

TC = Total Cost = TFC + TVC.

When Output = 4, TC = 20 + 25 = 45 and When Output = 7, TC = 20 + 50 = 70

Thus Change in TC = 70 - 45 = 25

So, Marginal cost = (Change in TC)/Change in Output = 25/5 = 5

Hence, the correct answer is **(d) $5.00**

Q
TC
TVC
TFC
AC
MC
AVC
1
100
2
160
3
20
4
95
5
170
6
120
the following incomplete table shows a firms various costs of
producing up to 6 units of output. fill in as much as possible. If
you cannot determine the number in a box, explain why it is not
possible to do so

L
W
MP
TP
MC
TVC
TFC
TC
1
200
10
2
200
30
3
200
75
650
4
200
40
5
200
140
Please answer the next 7 questions based on the table presented
above.
The TFC associated with 30 units of output is equal to ________
dollars.
The TVC of producing 4 units of output is equal to ___________
dollars.
MP is at a maximum when MC is equal to _______ dollars.
Diminishing returns sets in with the...

9. Average cost in the long-run is defined as _____.
TVC/Q
TC/Q
TVC + TFC/Q
none of the above
10. Economies of scale is a characteristic of production where
______.
average costs increase as output increases
total cost decreases as output increases
average cost decreases as output increases
average cost decreases as output decreases
11. Which of the following factors of production is more likely
to be fixed in the short run?
The number of workers.
Changes in electricity consumed....

Labour (hrs)
(Input)
TP
(Output)
AP
(Avg. Product)
MP
TVC
TFC
TC
(Total Cost)
AVC
ATC
MC
0
0
9
35
222
15
50
22
70
30
85
39
100
48
110
Complete the table above, assuming that the labour costs
are $8 / hr
What is the point of maximum productivity :
____ units of labour (input)
What is the AVC _____ and ATC
_____ at this quantity?
What is the quantity of diminishing returns?
____
What is the...

Labor, L(workers)
Output, Q (units per day)
0
0
1
4
2
9
3
18
4
28
5
35
6
40
7
42
8
43
9
40
10
35
What is the marginal return to labor from increasing
employment from 2 to 3 workers?
A. 3
B. 18
C. 9
D. 2
Quantity
Total Cost
495
1500
496
1505
497
1512
498
1520
499
1530
500
1545
501
1562
502
1580
The table above shows the total cost for Happy...

3. Cost Tables
(a) Fill in the following table, where TFC = Total Fixed Cost,
TVC = Total Variable Cost, TC = Total Cost, AFC = Average Fixed
Cost, AVC = Average Variable Cost, ATC = Average Total Cost, and MC
= Marginal Cost. Remember the following relationships:
TFC + TV C = TC
AF C = T F C/Q, AV C = T V C/Q, AT C = T C/Q
MC = ∆TC ∆Q
Output (Q)
TFC
TVC
TC...

Graph the following table.
Number of Workers
Total Output
0
0
1
20
2
60
3
150
4
260
5
350
6
420
7
455
8
420
9
375
10
300
A. What is the marginal product and average product at each
level of production?
B. Graph marginal product and average product.
C. Label the areas on the graph of increasing marginal
productivity, diminishing marginal productivity, and diminishing
absolute productivity.

Calculate total costs at 4 units of output. Do not put a dollar
sign in your answer. (The 6 columns are Quantity, Total Fixed Cost,
Total Variable Cost, Total Cost, Average Total Cost, and Marginal
Cost. The Quantity and Total Variable Cost columns have been filled
in along with the first row for Total Fixed Cost. Average Total
Costs and Marginal Costs are not calculated at a quantity of
0.)
Quantity
Total Fixed Cost
Total Variable Cost
Total Cost
Average...

Use the table showing output and costs for Betty Lou's Burritos
to answer the questions. Round your answers to two decimal
places.
Labor (workers per day)
Output (units per day)
Total fixed cost ($ per day)
Total variable cost ($ per day)
Total cost ($ per day)
0
0
50
0
50
1
8
50
25
75
2
12
50
50
100
3
20
50
75
125
4
25
50
100
150
5
32
50
125
175
What is the...

As a firm increases the level of output that it produces,
short-run average fixed cost
rises and then falls.
remains constant since fixed costs are constant.
decreases.
decreases up to a particular level of output and then
increases.
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Question 22 pts
Suppose that a firm is currently producing 500 units of output.
At this level of output, TVC = $1,000 and TFC = $2,500. What is the
firms ATC?
$2
$5
$7
$10
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