ECON 110 Read & Interact Schiller & Gephardt Chapter 5 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 5 solutions complete answers 

 

In the long run, the scale of production is virtually unlimited for many industries because:

 

Calculate average total cost if total cost is $100, variable costs are $75, fixed costs are $25, and output is 25.

 

When output is 10, what is the total cost if total fixed cost is $50 and total variable cost is $75?

 

Variable costs   (increase/decrease) with increases in output.

 

Which of the following are examples of variable costs? (Select all that apply.)

 

When graphing production costs, the total cost curve will be _______ and the fixed cost curve will be ________.

 

Which of the following are examples of fixed costs? (Select all that apply.)

 

Assuming other inputs are fixed and cannot change, if beyond some point of production, a firm experiences declining units of additional output with each additional unit of labor input, then the firm is experiencing the law of

 

The measure output per unit of input is called:

 

Using the table showing the production function of a jeans manufacturer, how many jeans can be produced per day if the firm has 1 sewing machine and 6 workers working efficiently?

 

Resource inputs used to produce goods and services include:

 

Which of the following are the factors of production?

 

A technological relationship expressing the maximum quantity of a good attainable from different combinations of factor inputs is known as

 

The purpose of _______ is to tell us just how much output we can produce with varying amounts of factor inputs.

 

Total output is

 

Using the table showing the production function of a Jeans manufacturer, how many jeans can be produced per day if the firm has 1 sewing machine and 3 workers working efficiently?

 

Resources inputs used to produce goods and services include:

 

A technological relationship expressing the maximum quantity of a good attainable from different combinations of resources is a       function.

 

Capacity is the concept that resource constraints place a ceiling on

 

The purpose of a production       is to tell us just how much output we can produce with varying amounts of factor inputs.

 

The productivity of any factor of production depends on the

 

What is total output?

 

The law of diminishing returns assumes which of the following to be variable in the short run?

 

Using the table showing the production function of a Jeans manufacturer, how many jeans can be produced per day if the firm has 1 sewing machines and 6 workers working efficiently?

 

      physical product is zero when total output doesn’t change with the addition of another worker.

 

_______ is the concept that resource constraints place a ceiling on potential output.

 

Assuming some inputs are fixed and cannot change, if beyond some point of production, a firm experiences decreased output when hiring one more worker, then the firm is experiencing the law of

 

When we measure output per unit of input, we call it

 

Which of the following resources would be difficult for a firm to quickly adjust?

 

The law of diminishing returns relates to situations in which the relative ______ of other inputs (capital and land) constrains the marginal physical product of labor.

 

Economists distinguish between which two production time periods?

 

In the       run, a firm cannot increase its output by changing the amount of capital.

 

Marginal physical product is equal to _______ when total output doesn’t change with the addition of another worker.

 

Profit is the difference between total _______ and total _______.

 

The law of ______ states that as successive units of a variable input are added to a fixed input, beyond some point, the marginal physical product will decline.

 

A firm's total costs of producing a specific output depend on which of the following?

 

Which resource requires the most time for a firm to adjust?

 

      cost is the sum of all resources used to produce a good or service.

 

Which are the two production time periods?

 

Factory rental payments, sewing machine lease payments, and interest on a firm's debts are all examples of       costs.

 

A firm can most easily increase its output in the short run by

 

Variable costs are those expenses that

 

Total revenue minus total cost is:

 

Which group of costs is the most accurate example of variable cost?

 

What factors are involved in a firm's total cost of producing a specific output?

 

What does the vertical distance between the total cost and fixed costs measure?

 

The market value of all resources used to produce a good or service is called       cost.

 

The total cost and variable cost curves are ______, whereas the fixed cost curve is ______.

 

Which of the following are examples of fixed costs (select all that apply)?

 

Variable costs       with increases in output.

 

_____ costs are those costs that change with the level of output.

 

What is the total cost if fixed cost is $50 and variable cost is $75 when output is 10?

 

Which of the following are examples of variable costs (select all that apply)?

 

A firm cannot avoid paying       costs in the short run.

 

On a graph with the total costs of production, at any output we can identify the variable costs as:

 

What is the difference between a fixed cost and a variable cost?

 

Which statement below is true of the variable cost and the total cost of production?

 

How do variable costs move in relation with output?

 

Which are the two most important costs a firm needs to know to make profitable production decisions?

 

If fixed cost is $10 and variable cost is $16 at 10 units of output, what is total cost?

 

Average total cost equals total cost divided by total ______.

 

What costs can a firm not avoid paying in the short run?

 

Calculate average total cost if total cost is $100, variable costs are $75, fixed costs are $25 and output is 25?

 

To determine       costs, managers look for costs that in total do not vary with changes in output, whereas       costs are those total costs that change with the level of output.

 

Refer to the table. Calculate average total cost when the firm produces 20 units of output.

 

When graphing production costs, the total costs curve will be _______ and the fixed costs curve will be ________.

 

The average total cost curve is

 

The two most important costs a firm needs to understand to make profitable production decisions include

 

The upturn of the average total cost curve is caused by rising       costs.

 

What method can be used to calculate average total cost?

 

A firm is producing 4 units at a total cost of $100. The firm can produce an additional unit for a cost of $70. The cost of one additional unit is known as a(n)

 

What is average total cost if at an output level of 150, fixed cost is $100, and average variable cost is $7400?

 

If a t-shirt business hires one additional worker and pays her $100, the firm can produce 50 more shirts. Calculate the marginal cost of an additional shirt.

 

Calculate average total cost when the firm produces 30 units of output.

 

Which of the following curves first falls and then rises?

 

The initial dominance of the falling average fixed costs combined with the later rising marginal costs causes the _______ to be U-shaped.

 

As output increases, marginal cost _____.

 

Marginal cost is _____.

 

The choice of how intensively to use available plant and equipment in the short run is referred to as

 

If a taco business hires one additional worker and pays him $25, the firm can produce 50 more tacos. Calculate the marginal cost of an additional taco.

 

_______ is a basic determinant of short-run supply (production) decisions.

 

What is a minimal condition for supplying additional output?

 

In many industries, the long-run investment decision demonstrates that the number of possible plant sizes is ______.

 

When marginal physical product is falling, marginal costs must be ______.

 

The decision to build, buy, or lease plant and equipment or the decision to enter or exit an industry is known as the

 

The selection of the short-run rate of output (with existing plan and equipment) is referred to as

 

The time frame in which there are no fixed cost is known as:

 

The most important factor in the short-run production decision is

 

The decision to build, buy, or lease plant and equipment or to enter or exit an industry is referred to as

 

Covering _______ is a minimal condition for supplying additional output.

 

______ and ______ costs are what firms pay for the inputs they use when producing output.

 

In the long run, the scale of production is virtually unlimited for many industries since:

 

The decision to build, buy, or lease plant and equipment or the decision to enter or exit an industry is known as the       decision.

 

If you purchase the factory that you are currently using, the _____ cost will change.

 

In the long run there are no _____ costs.

 

Which of the following explains the concept of explicit costs?

 

A production decision takes place in the short run whereas an investment decision takes place in the       run.

 

Economic costs =

 

What types of costs do firms incur when producing products?

 

Which of the following would incur an explicit cost?

 

Which of the following are examples of implicit costs?

 

      cost is the value of the best forgone alternative when we make a decision.

 

costs are the value of resources used in production, even when no direct payment is made for (or to) them.

 

      costs are the monetary payments a firm makes to those who provide the resources or inputs to production.

 

Economic costs are defined as

 

Economic profit =

 

A firm's monetary payments to those who supply transportation services is an example of _____.

 

_______ profit is total revenue minus explicit costs.

 

If you quit your job to start your own business, your forgone wages are:

 

Improvements in _______ will shift the production function upward.

 

True or false: Implicit costs are the value of resources used when no direct payment is made.

 

Which of the following would not increase productivity?

 

Economic profit is

 

_______ profit is total revenue minus total costs (where total costs include both explicit and implicit costs).

 

Improvements in productivity will shift the production function

 

Which of the following increase productivity?

 

A technological relationship expressing the maximum quantity of a good attainable from different combinations of _______ is known as a production function.

 

Which of the following does the law of diminishing returns assume to be fixed in the short run?

 

Which of the following resources can a firm easily and quickly adjust?

 

The difference between total revenue and total cost is

 

Costs of production that do not change when the rate of output is altered are _______ costs.

 

What is the definition of total cost?

 

What type of costs do not vary with changes in output?

 

Which of the following are types of costs that do not vary with changes in output (i.e., fixed costs)?

 

Which statement below describes the variable and total cost curves?

 

What is the definition of average total cost?

 

Calculate average total cost if total cost is $400 and output is 800.

 

What is the relationship between the law of diminishing returns and the marginal cost curve (select all that apply)?

 

Calculate average total cost if total cost is $400 and output is 200.

 

What is the definition of marginal cost?

 

What is marginal cost when output changes from 300 to 301 units and total costs rise from $400 to $500?

 

A firm is producing 4 units at a total cost of $100. The firm can produce an additional unit for a cost of $70. The marginal cost is

 

________ cost equals a change in total cost divided by a change in total output.

 

If total costs rise from $300 to $700 when one additional unit of output is produced, what is marginal cost?

 

If you purchase the factory that you are currently using the _____ cost of it will not change.

 

The ______ is the value or worth of all resources used to produce the good or service.

 

Forgone entrepreneurial income is an example of a(n)

 

If you quit your job to start your own business, your forgone wages from your former job become part of the ________ costs of your business.

 

Investments in education or capital shift the production function upward. Thus, the marginal physical product of labor _______ and marginal costs _______.

 

___(one word) physical product is the change in total output divided by the change in input quantity.

 

A company has three workers. It adds an additional laborer and its total output increases by 21. What is the company’s marginal physical product?

 

A law of diminishing returns assumes that which of the following typically are fixed in the short run?

 

The law of ___ states that as successive units of variable input are added to a fixed input, beyond some point, the marginal physical product will decline.

 

As more and more pizza workers are hired in a store with only one pizza oven, eventually the total output of pizzas will not increase as much or will even decrease. This is an example of the law of 

 

Profit is:

 

Variable costs are those costs that

 

Average variable cost equals total variable cost divided by total ___.

 

True or false: The initial dominance of the falling average fixed costs combined with the late rising average variable costs causes the average total cost curve to be U-shaped.

 

Marginal cost is:

 

In the ___ run, a firm can increase its output by easily adding extra units of labor to its established manufacturing plant.

 

Only if we produce with maximum ___ will we end up at some point on the production function.

 

If the change in total output is 10 units and the change in labor input is 1, what is marginal physical product?

 

___ costs are those costs that change with the level of output.

 

Any point on the production function is a(n) ___ point if workers goof off or the capital isn’t maintained well, total output might be less than those along the production function.

 

The law of diminishing returns assumes that which of the following typically are variable in the short run?

 

The change in total cost divided by the change in output is:

 

If a firm is getting the maximum output of a good from the resources used in production, then they have achieved ___ in production.

 

___ costs are the monetary payments a firm makes to those provide the resources or inputs to production.

 

___ costs are the value of resources used, even when no direct payment is made.

 

Is the change in total cost and the change in variable cost associated with each additional unit of output the same because the only difference between total costs and variable costs is the fixed cost?

 

Average fixed cost equals total fixed cost divided by ___.

 

An ___ cost is the value or worth the resource would have in its best alternative use.