ECON CH 13 example #58972

Economists normally assume that the goal of a firm is to (i) sell as much of their product as possible. (ii) set the price of their product as high as possible. (iii) maximize profit.

The amount of money that a firm receives from the sale of its output is called

The amount of money that a firm pays to buy inputs is called

Profit is defined as

Which of the following can be added to profit to obtain total revenue?

Economists normally assume that the goal of a firm is to (i) make profit as large as possible even if it means reducing output. (ii) make profit as large as possible even if it means incurring a higher total cost. (iii) make revenue as large as possible.

Total revenue equals

Those things that must be forgone to acquire a good are called

XYZ corporation produced 300 units of output but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. Each of the 275 units sold was sold for a price of $95. Total revenue for the XYZ corporation would be

Explicit costs

An example of an explicit cost of production would be

An example of an implicit cost of production would be

Accountants are primarily interested in the

John owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements?

Economic profit is equal to

Accounting profit is equal to

Economic profit is equal to (i) total revenue - (explicit costs + implicit costs). (ii) total revenue - opportunity costs. (iii) accounting profit + implicit costs.

Accounting profit is equal to (i) total revenue - implicit costs. (ii) total revenue - opportunity costs. (iii) economic profit + implicit costs.

Economic profit

To an economist, it is conceivable that the objective that motivates an individual entrepreneur to start a business arises from

When a firm is making a profit-maximizing production decision, which of the following principles of economics is likely to be most important to the firm's decision?

A production function is a relationship between

The marginal product of labor is equal to the

The marginal product of labor can be defined as

One would expect to observe diminishing marginal product of labor when

When adding another unit of labor leads to an increase in output that is smaller than increases in output that resulted from adding previous units of labor, we have the property of

(Refer to the figure) As the number of workers increases

(refer to the figure)With regard to cookie production, the figure implies

(refer to the figure)Which of the following statements about a production function is correct for a firm that uses labor to produce output?

Which of the following is true of the production function (not pictured) that underlies this total cost function? (ii) Total output increases as the quantity of inputs increases, but at a decreasing rate. (ii) Marginal product is diminishing for all levels of input usage. (iii) The slope of the production function decreases as the quantity of inputs increases

The changing slope of the total cost curve reflects

Which of the following statements best captures the nature of the underlying production function?

Which of these assumptions is often realistic for a firm in the short run?

Assume a certain firm regards the number of workers it employs as variable, and that it regards the size of its factory as fixed. This assumption is often realistic

The marginal product of an input in the production process is the increase in

A total-cost curve shows the relationship between the

Which of the following costs do not vary with the amount of output a firm produces?

An example of a fixed cost would be (i) raw materials supplied at a government -regulated price. (ii) rent paid on a factory. (iii) machine maintenance.

Fixed costs can be defined as costs that

Suppose Jan is starting up a small lemonade stand business. Variable costs for Jan's lemonade stand would include the cost of

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

One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in the short run,

The cost of producing the typical unit of output is the firm'

Average total cost is equal to

The amount by which total cost rises when the firm produces one additional unit of output is called

The cost of producing an additional unit of output is the firm's

Variable cost divided by quantity produced is

Average total cost tells us the

Marginal cost tells us the

Average total cost will be

Average fixed cost will be

If marginal cost is rising,

Diminishing marginal product suggests that the marginal

Diminishing marginal product suggests that

The average fixed cost curve

Average total cost is very high when a small amount of output is produced because

The efficient scale of the firm is the quantity of output tha

When marginal cost is less than average total cost

When marginal cost exceeds average total cost,

Average total cost is increasing whenever

Marginal cost is equal to average total cost when

The marginal cost curve crosses the average total cost curve at

If marginal cost is below average total cost, then average total cost

At all levels of production beyond the point where the marginal cost curve crosses the average variable cost curve, average variable cost

(Refer to figure) Which of the curves is most likely to represent average total cost?

(Refer to figure) Which of the curves is most likely to represent average variable cost?

(Refer to figure) Which of the curves is most likely to represent marginal cost?

This particular firm is necessarily experiencing increasing marginal product when curve

This particular firm is necessarily experiencing diminishing marginal product when curve

Total cost can be divided into two types. Those two types are

Some costs do not vary with the quantity of output produced. Those costs are called

Which of the following statements about costs is correct?

The firm's efficient scale is the quantity of output that minimizes

The average fixed cost of producing five widgets is

The average variable cost of producing four widgets is

The marginal cost of producing the sixth widget is

What is the variable cost of producing zero widgets?

What is the marginal cost of producing the first widget?

What is the variable cost of producing five widgets?

Harry's Hotdogs is a small street vendor business owned by Harry Huggins. Harry is trying to get a better understanding of his costs by categorizing them as fixed or variable. Which of the following costs are most likely

When a firm is able to put idle equipment to use by hiring another worker,

When a firm is operating at an efficient scale,

Which of the following must always be true as the quantity of output increases?

Which of the following statements is false?

When marginal cost is rising, average variable cost

One of the most important properties of cost curves is that

When a factory is operating in the short run,

In the long run,