Name: 

In Exhibit 7-2, lines H, J, and K represent, respectively,

In Exhibit 0109, when output is 10,

In Exhibit 0109, what phrase best describes point d?

In Exhibit 0109, the vertical distance between lines B and C at any level of output represents

In exhibit 0109, when output = 10 units, the

In Exhibit 0103; the total product of four workers is

In Exhibit 0103, the marginal product of the third worker is

In Exhibit 0103, diminishing marginal returns occur when additional workers are added after the

The law of diminishing marginal returns states that

In the long run, all costs are fixed.

Inputs that can be increased or decreased in the short run are called

The short run is a period of time

The long run is a period of time

Which of the following is a fixed cost of preparing meals?

If a firm shuts down (produces 0 units, but stays in business) in the short run and produces no output, its total cost will be

Which of the following is not an explicit cost?

Two friends, Diane and Sam, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips, but doesn’t share in the profits. Sam tends bar on Tuesday, Thursday, and Saturday.  Sam doesn’t get a wage, but he receives tips and shares in profits. Which of the following represents an implicit cost of operating the bar?

Accounting profit is

Suppose a lawyer leaves his $50,000-a-year job and starts his own firm breeding pit bulls. In the first year, his accounting profits are $70,000. The lawyer finances his new business with $100,000 from his savings account, which had earned 10 percent interest. His economic profit is

If the Money Store earns a normal profit this year, its

Normal profit is defined as

The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1,400. If the variable cost of producing 500 water pistols is $1,300, then

The short-run average variable cost curve

The average total cost curve and the average variable cost curve

In exhibit 0109, two curves intersect at point e.  These two curves are:

For each size of plant a manufacturer could build, there is a different

The shape of the long-run average cost curve reflects

Diseconomies of scale are pictured on a graph by the upward-sloping portion of the

An automobile racing team experiences has lower average costs when it enters 2 cars instead on entering only 1 car in each race.  A team with 3 cars has even lower costs than a team with 2 cars.  A team with 4 or 5 cars has the same average costs as the 3-car team.  But a team trying to enter 6 or more cars finds it’s average costs are higher than the 3-car teams.  Race car teams  experience ___________ when expanding to from 5 to 6 cars.

An automobile racing team experiences has lower average costs when it enters 2 cars instead on entering only 1 car in each race.  A team with 3 cars has even lower costs than a team with 2 cars.  A team with 4 or 5 cars has the same average costs as the 3-car team.  But a team trying to enter 6 or more cars finds it’s average costs are higher than the 3-car teams.  Race car teams  experience ___________ when expanding to from 3 to 5 cars.