In the short run, total variable cost __________ as we produce more and more output -
rises
Short Run - at least one cost is fixed
TC=500+5Q - short run curve
TC= 500+5Q - variable cost is given by 5Q
One of the major reasons why most people get in to business is - make as much money
as possible
Total profits equal - Total Revenue - Total Cost
Outsourcing of work by business is done with a view to - minimize Labor cost
A mathematical expression of a relationship between physical units of inputs and output
is called - production function
When the demand for electricity peaks during the hottest days of summer, XYZ
company generates more electricity by using more fuels and more workers. The
company cannot, however, increase electric power production by building additional
generating capacity. This means that XYZ company is in the - short run
Points on the total product or output curve are - attainable and technologically efficient.
Which of the following represents the short - run? - Walmart asks employees to work
overtime.
Economists believe (based on empirical evidence) that marginal product of labor -
increases and then declines as we employ more and more workers.
If marginal product is positive for each worker, then total output ___________ as we
increase number of workers. - increases.
If total product is falling, then - marginal product is negative.
, Consider the following production function: Q = 50K + 10L
Based on this equation, marginal product of labor is - 10
Average Product (AP) - Q/L
If marginal product of labor equals the average product of labor, then the - average
product of labor is at a maximum.
Suppose your average annual income between 2005 and 2013 has been $100,000. In
2014, you earn $150,000 and your average annual income between 2005 and 2014 will
change. To use an analogy in Economics, we would say - average product rises when
marginal product exceeds average product.
When average product is decreasing, then - marginal product is less than average.
MP < AP
Suppose your GPA (grade point average) after the first semester is 3.0 and you receive
4.0 in the second semester. Based on this information, your GPA at the end of the
second semester will be _______ than 3.0 - higher
Suppose the average total cost to produce 100 cookies is $0.50 per cookie and the
average variable cost to produce a cookie is $0.10, The total cost of producing 100
cookies is - $50
Suppose the average total cost to produce 100 cookies is $0.50 per cookie and the
average variable cost to produce a cookie is $0.10, The total cost of producing 50
cookies must be - $45
Suppose the average total cost to produce 100 cookies is $0.50 per cookie and the
average variable cost to produce a cookie is $0.10, The total fixed cost of producing
cookies is - $40
As we produce more and more output, the AVC and ATC curves come closer and
closer because - AFC declines as we produce more and more.
Average Variable Cost (AVC) curve is U - shaped because - average product of labor
rises and then falls.
Marginal Fixed cost of producing output is always _______________ and average fixed
cost continuously ______________ as output is increased. - zero; falls.
If you know that average variable cost is at a minimum, then you can deduce that -
marginal cost of equals average variable cost.
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