Micro Longview: Cost and Perfect Competition

question

John Snow spent $350 on labor and materials to produce a cabinet. He supervised the work which took 4 hours to complete. If John had gone to work for those 4 hours he could have made $30/hour. What is John's explicit cost of making the cabinet?

answer

$350

question

answer

$120

question

economist regard implicit costs as

answer

a part of the normal cost of producing output

question

in which case will the transition from short run to long run involve the shortest chronological time

answer

temporary employment

question

marginal product can reveals to a producer

answer

how much the last unit of a variable input added to output

question

US Steel company reduced the number of man-hours required to produce a ton of steel from 10.8 in 1982 to 3.8 in 1990, thereby eliminating 55,000 jobs. This means that the

answer

productivity of labor had increase

question

the law of diminishing returns

answer

is based on regular observations of the relationships between inputs and output over the last two centuries

question

A factory produces 1,000 radios a month. At that quantity of output the AVC = $10 and the Total Fixed Cost is $5,000. The factory?s total cost of producing 1,000 radios

answer

equals 15,000

question

total fixed cost

answer

remains constant even if the firm shuts down

question

the average total cost curve

answer

is the summation of the AFC and the AVC curves

question

if economies of scaled exist for a particular production function, long run average total costs will

answer

fall

question

which of the following has an elastic supply

answer

hair cuts

question

which of the following statements is accurate

answer

firms are profit max entities which face scarcity of resources which forces them to be efficient

question

for a typical firm short run is that time period within which the firm

answer

cannot change its capital

question

long run time period is the period within which

answer

all of the resources are variable

question

fixed costs are those costs that

answer

do not change in total as the level of output changes

question

variable costs are those costs that

answer

change on per unit basis and in total as output changes

question

marginal costs is

answer

the cost of producing one more unit of output

question

economists regard average or normal profits

answer

as a cost of production

question

our economic profits or simply put economic profits are

answer

profits that are above normal

question

what is the least amount of profts that a firm must make in order to keep its investors satisfied

answer

normal or average profits

question

in the short run a typical firms supply curve is

answer

its MC is above the AVC

question

the shut down point is

answer

a min point on AVC

question

the average variable cost rises after reaching its min point due to

answer

diminishing returns

question

if the next worker hired produces less than the previous worker, the next worker

answer

was hired in the diminishing returns range of production

question

the cost of carrying out trade, the cost of doing business, as opposed to the cost of specific items is

answer

transaction cost

question

one advantage firms have over households in producing and providing products is that

answer

firms have lower transaction cost which allow them to have lower unit cost

question

an allocation is pareto optimal if

answer

it is impossible to make some people better off without make anybody worse off

question

a homogeneous product is produced by many firms in a given market when

answer

buyers can not differentiate one firms product from the products of all the other firms in the market

question

in the competitive market in the long run

answer

MC=MU

question

at long run equilibrium in the competitive market

answer

P=MC=MR=ATC

question

for a market to be perfectly competitive there must be

answer

a large number of firms in the market

question

for perfect competition to exist

answer

complete information has to be available to the market participants

question

if a firm is producing and selling a quantity of its output at which the average revenue is less than average total cost then the firm is

answer

incurring economic losses

question

if the firm is producing and selling a quantity of its output at which the marginal revenue is larger than the marginal cost then the firm should

answer

expand its output

question

Jenny wants to buy a new spring dress and she knows which one she wants and she is willing to pay $80 for it. The day she goes to the department store to buy the dress the price of the dress is $65. In this situation:

answer

jenny has a surplus of $15

1 of 36

question

answer

$350

question

answer

$120

question

economist regard implicit costs as

answer

a part of the normal cost of producing output

question

in which case will the transition from short run to long run involve the shortest chronological time

answer

temporary employment

question

marginal product can reveals to a producer

answer

how much the last unit of a variable input added to output

question

US Steel company reduced the number of man-hours required to produce a ton of steel from 10.8 in 1982 to 3.8 in 1990, thereby eliminating 55,000 jobs. This means that the

answer

productivity of labor had increase

question

the law of diminishing returns

answer

is based on regular observations of the relationships between inputs and output over the last two centuries

question

A factory produces 1,000 radios a month. At that quantity of output the AVC = $10 and the Total Fixed Cost is $5,000. The factory?s total cost of producing 1,000 radios

answer

equals 15,000

question

total fixed cost

answer

remains constant even if the firm shuts down

question

the average total cost curve

answer

is the summation of the AFC and the AVC curves

question

if economies of scaled exist for a particular production function, long run average total costs will

answer

fall

question

which of the following has an elastic supply

answer

hair cuts

question

which of the following statements is accurate

answer

firms are profit max entities which face scarcity of resources which forces them to be efficient

question

for a typical firm short run is that time period within which the firm

answer

cannot change its capital

question

long run time period is the period within which

answer

all of the resources are variable

question

fixed costs are those costs that

answer

do not change in total as the level of output changes

question

variable costs are those costs that

answer

change on per unit basis and in total as output changes

question

marginal costs is

answer

the cost of producing one more unit of output

question

economists regard average or normal profits

answer

as a cost of production

question

our economic profits or simply put economic profits are

answer

profits that are above normal

question

what is the least amount of profts that a firm must make in order to keep its investors satisfied

answer

normal or average profits

question

in the short run a typical firms supply curve is

answer

its MC is above the AVC

question

the shut down point is

answer

a min point on AVC

question

the average variable cost rises after reaching its min point due to

answer

diminishing returns

question

if the next worker hired produces less than the previous worker, the next worker

answer

was hired in the diminishing returns range of production

question

the cost of carrying out trade, the cost of doing business, as opposed to the cost of specific items is

answer

transaction cost

question

one advantage firms have over households in producing and providing products is that

answer

firms have lower transaction cost which allow them to have lower unit cost

question

an allocation is pareto optimal if

answer

it is impossible to make some people better off without make anybody worse off

question

a homogeneous product is produced by many firms in a given market when

answer

buyers can not differentiate one firms product from the products of all the other firms in the market

question

in the competitive market in the long run

answer

MC=MU

question

at long run equilibrium in the competitive market

answer

P=MC=MR=ATC

question

for a market to be perfectly competitive there must be

answer

a large number of firms in the market

question

for perfect competition to exist

answer

complete information has to be available to the market participants

question

if a firm is producing and selling a quantity of its output at which the average revenue is less than average total cost then the firm is

answer

incurring economic losses

question

if the firm is producing and selling a quantity of its output at which the marginal revenue is larger than the marginal cost then the firm should

answer

expand its output

question

answer

jenny has a surplus of $15

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order