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  3. Liberty ECON 213 InQuizitive Ch. 8 Answers Complete Solutions

Liberty ECON 213 InQuizitive Ch. 8 Answers Complete Solutions

 

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What are examples of the factors of production that affect the output of a car repair shop?

the tools in the garage

the amount of space available to accommodate cars in the garage

the number of competing car repair shops nearby

the number of people who own cars near the shop

the number of mechanics at the shop

Look at the table below which shows the costs of producing Big Macs. Why does the total cost equal $100 even when there are zero Big Macs produced?

Total cost includes both fixed and variable costs, and fixed costs are incurred even when they are not producing.

Total costs include only variable costs, and variable costs are incurred even when they are not producing.

Total costs include only fixed costs, and fixed costs are incurred even when they are not producing.

Total cost includes both fixed costs and variable costs, and variable costs are incurred even when they are not producing.

Profit is the amount of money a company earns.

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When will firms have lower costs in the long run? Order the types of scales from that with the lowest long-run average total cost to that with the highest long-run average total cost.

What are some of the variable costs of running a flower shop?

What is the relationship between the marginal product of labor and total output? Drag the marginal product labels to the appropriate sections of the total product graph.

What are examples of explicit costs?

paying an employee’s wages

the amount of money an owner could have made by raising prices

the cost of the business owner’s time and labor

the amount of money the owner could have made by investing in an alternative activity

paying for gas for a company vehicle

It is always good to have a high output because it spreads the total fixed costs over more units.

Bill owns a grocery store chain with 2,000 total employees. Nine hundred of his employees are managers. What can we assume about the total productivity of Bill’s chain?

What should a firm do once it realizes it is in a situation with a diminishing marginal product?

The firm – stop producing additional units. If marginal product is –, the firm should continue production if it can sell the output for more than the – costs.

Place the numbers in the appropriate locations to complete the table showing total output and marginal product of labor.

Calculate the marginal product for a car repair shop that adds two mechanics and begins fixing five extra cars each week.

Which situation describes a company experiencing a loss?

A company that manufactures computers has a monthly fixed cost of $1,000. If it sells 400 computers each month, what is its average fixed cost?

Examine the data on the chart and click on the first (lowest) production level where average variable cost has gone past its minimum and begun to rise.

In the long run, firms can control their costs by adjusting the scale of their production process. Drag the appropriate description of the relationship between output and cost to the end of the correct long-run average total cost curve.

Fill in the blanks to explain why it can be bad for a company to have too much labor.

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