Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337368087
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 12, Problem 6CQQ
To determine
Economies of scale.
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If a higher level of production allows workers to specialize in particular tasks, a firm will likely exhibit _______of scale and ______ average total cost.
a. economies, falling
b.economies, rising
c. diseconomies, falling
d. diseconomies, rising
If average total cost is increasing as output increase, then marginal cost must be
average total cost.
Select one:
a. equal to
b. less than
c. greater than
d. not enough information to make a decision.
One important concept we learned this semester is the relationship between productivity and cost. We learned that average
variable cost and the average product of labor have a
relationship, ceteris paribus.
Select one:
a. fixed or constant
b. all of the above
c. inverse
O d. positive
Joanne sells silk screened T-shirts at community festivals and craft fairs. Her marginal cost to produce one T-shirt is $3.50. Her total cost to produce 70 T-shirts is $305, and she sells
them for $7 each
a. Find the linear cost function for Joanne's T-shirt production
b. How many T-shirts must she produce and sell in order to break even?
c. How many T-shirts must she produce and sell to make a profit of $700?
a. The linear cost function is C(x)=
b. Joanne must produce and sell
c. Joanine must produce and sell
T-shirts in order to break even, because the number of T-shirts must be a whole number
T-shirts to make a profit of $700, because the number of T-shirts must be a whole number
Chapter 12 Solutions
Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
Ch. 12.1 - Prob. 1QQCh. 12.2 - Prob. 2QQCh. 12.3 - Prob. 3QQCh. 12.4 - Prob. 4QQCh. 12 - Prob. 1CQQCh. 12 - Prob. 2CQQCh. 12 - Prob. 3CQQCh. 12 - Prob. 4CQQCh. 12 - Prob. 5CQQCh. 12 - Prob. 6CQQ
Ch. 12 - Prob. 1QRCh. 12 - Prob. 2QRCh. 12 - Prob. 3QRCh. 12 - Prob. 4QRCh. 12 - Prob. 5QRCh. 12 - Prob. 6QRCh. 12 - Prob. 7QRCh. 12 - Prob. 8QRCh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Prob. 5PACh. 12 - Prob. 6PACh. 12 - Prob. 7PACh. 12 - Prob. 8PACh. 12 - Prob. 9PACh. 12 - Prob. 10PA
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- What is a long-run average cost curve?arrow_forwardA production process uses two inputs, labor and capital. If the marginal product of labor per dollar is higher than the marginal product of capital dollar, what should the firm do to lower costs? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Increase output b Decrease output C Increase the amount of capital d Increase the amount of laborarrow_forwardEconomicarrow_forward
- How would each of the following affect average total cost, average variable cost, and marginal... Question: How would each of the following affect average total cost, average variable cost, and marginal cost? A. An increase in the cost of the lease of the firm's building. B. A reduction in the price of electricity. C. A reduction in wages. D. A change in the salary of the president of the company.arrow_forwardSuppose, Home Style is a well-known furniture manufacturer in the Sultanate. To meet the increasing demand, the company increased the production of some furniture items. As a result, there was an increase in the cost of raw materials such as plywood, timber and plastic etc. What do you call the amount spent by Home Style on these resources? a. Indirect cost b. Implicit cost c. Average cost d. Variable costarrow_forwardThe long-run is a period of time long enough so that all inputs, including facility and equipment, are variable, while in the short run at least one input is fixed. Think about how much time it would take to change the scale of operation for a restaurant, for an automobile plant, for a website designing company... Does it seem that the amount of time that separates the long run from the short run is industry-specific, rather than a set period of time?arrow_forward
- A firm has the production function f(x, y) = x®y0.3, where a>0.7. This firm has Select one: a. decreasing returns to scale and increasing marginal product for factor x and y. b. None of the above. c. increasing returns to scale and diminishing marginal product of factor x. d. constant returns to scale. e. decreasing returns to scale and diminishing marginal products for factor y.arrow_forwardMarginal cost, average total cost and average variable cost Marginal cost and average total cost are always equal. Do you agree? Explain. If you disagree then write under what situation they are equal. b. Marginal cost and average variable cost are always equal. Do you agree? Explain. If you disagree then write under what situation they are equal.arrow_forward
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