Question : Labor (workers) Output (frijoles) Total cost (dollars) : 1241163

 

 

 

Labor (workers)

Output (frijoles)

Total cost (dollars)

0

0

1,000

5

1,000

3,000

10

3,000

5,000

15

4,000

7,000

20

4,500

9,000

 

49) The above table gives some production and cost information for Flaming Fernando’s, a restaurant that sells Fiery Frijoles. What is the total fixed cost of producing 4,500 frijoles?

A) $1000

B) $8000

C) $9000

D) $2,000

E) More information is needed to determine the answer.

 

50) The above table gives some production and cost information for Flaming Fernando’s, a restaurant that sells Fiery Frijoles. Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?

A) 0 and 1000

B) 1000 and 3000

C) 3000 and 4000

D) 4000 and 4500

E) None of the above answers is correct.

 

51) The above table gives some production and cost information for Flaming Fernando’s, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?

A) $1

B) $2

C) $3

D) $3,000

E) More information is needed to determine the answer.

52) The above table gives some production and cost information for Flaming Fernando’s, a restaurant that sells Fiery Frijoles. What is the average total cost of producing 4,500 frijoles?

A) $2

B) $225

C) $9,000

D) $8,000

E) More information is needed to determine the answer.

 

53) The production and cost information provided in the table above for Flaming Fernando’s, a restaurant that sells Fiery Frijoles, is for the

A) short run because there are no variable costs.

B) short run because there is a fixed cost.

C) long run because there are no variable costs.

D) long run because there are no fixed costs.

E) short run and long run because the total cost increases as production increases.

 

54) The vertical distance between total cost curve and total variable cost curve is equal to

A) average fixed cost.

B) total fixed cost.

C) average variable cost.

D) average total cost.

E) marginal cost.

55) The U-shaped average total cost curve is

A) a result of firms’ wanting to find the output level where cost is at its minimum.

B) unrealistic because average total cost always increases as output increases.

C) the result of average fixed cost falling and decreasing marginal returns as output increases.

D) a result of constant marginal returns.

E) a result of increasing marginal returns.

 

56) The U-shape of the average variable, average total, and marginal cost curves reflects

A) increasing marginal returns.

B) decreasing marginal returns.

C) both increasing and decreasing marginal returns.

D) decreasing marginal product.

E) the point that implicit costs become a smaller fraction of total cost as output increases.

 

57) The short-run average total cost, average variable cost, and marginal cost curves are all U-shaped because of

i.constant total fixed cost.

ii.increasing and then decreasing marginal returns as more labor is hired.

iii.economies and diseconomies of scale as the plant size increases.

A) only i

B) only ii

C) i and iii

D) ii and iii

E) i, ii, and iii