In the diagram, what do curves 1, 2, and 3 represent? marginal product, average variable cost, and average total cost respectively total variable cost, total fixed cost, and total cost respectively average variable cost, marginal cost, and average fixed cost respectively total fixed cost, total variable cost, and total cost respectively

total fixed cost, total variable cost, and total cost respectively

In the diagram, what does the vertical distance between ATC and AVC reflect? the law of diminishing returns the presence of economies of scale marginal cost at each level of output the average fixed cost at each level of output

the average fixed cost at each level of output

Which of the following definitions is correct regarding economic profit? Accounting profit + economic profit = normal profit Economic profit - implicit costs = accounting profits Economic profit = accounting profit - implicit costs Economic profit - accounting profit = explicit costs

Economic profit = accounting profit - implicit costs

What does the shape of each short-run average total cost curve reflect in the diagram? economies of scale, followed by diseconomies of scale constant costs increasing marginal product, followed by diminishing marginal product increasing costs, followed by decreasing costs

increasing marginal product, followed by diminishing marginal product

Microecon Unit 5

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Economics - Managerial Economics

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Cards in this deck(40)

In the given diagram, what is the total fixed cost at output level Q?

As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, what economic condition might they encounter?

What is the average fixed cost of producing 3 units of output according to the given data?

What is the marginal product of the fourth worker based on the provided data?

In the diagram, what do curves 1, 2, and 3 represent?

As the firm expands from plant size #1 to plant size #3 in the diagram, what does it experience?

A local playground equipment company plans to operate out of its current factory for 30 years. All cost decisions made during this period are considered:

In the diagram, what does the vertical distance between ATC and AVC reflect?

Which of the following definitions is correct regarding economic profit?

What does the shape of each short-run average total cost curve reflect in the diagram?

What is the basic characteristic of the short run in economic terms?

If a business incurred implicit costs of $200,000 and explicit costs of $1 million, and sold 4,000 units at $300 each, what were its accounting and economic profits?

What is fixed cost in economic terms?

When two workers are employed, what is the total product according to the data?

What is the total variable cost of producing 5 units according to the data?

Why are accounting profits typically greater than economic profits?

At output level Q in the diagram, how is average fixed cost measured?

At output level Q in the diagram, what is happening to the marginal product?

According to Table 13-7, what is the total output when 1 worker is hired?

Which statement is correct regarding the relationship between MP and MC?

What is the profit-maximizing output for this firm according to the data?

In the diagram, what is the total variable cost at output level Q?

In the figure, what do curves 1, 2, 3, and 4 represent?

What is the average total cost of producing 3 units of output according to the data?

If a firm decides to produce no output in the short run, what will its costs be?

When is it realistic for a firm to regard the number of workers as variable but the size of its factory as fixed?

Which of the following curves is not U-shaped?

What does the statement 'If a variable input is added to some fixed input, beyond some point the resulting extra output will decline' describe?

Why is average total cost very high when a small amount of output is produced?

What is the history of economics in relation to refer and falling?

A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100, what is the average variable cost?

If a business incurred implicit costs of $500,000 and explicit costs of $5 million, and sold 100,000 units at $50 each, what were its accounting and economic profits?

In the diagram, what is the total cost at output level Q?

If average total cost is declining, what must be true about marginal cost?

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the total cost of producing 101 units?

According to the data, when does diminishing marginal product of labor become evident?

What is the main difference between the short run and the long run in economic terms?

What is the marginal product of the sixth worker according to the data?

What does a production function describe?

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $3,500. When it produces 101 units of output, its total costs are $3,750. What is the marginal cost of producing the 101st unit of output?

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Microecon Unit 5

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