Refer to Table 8-7. What is the average variable cost per unit of production when the firm produces 90 lanterns? $490 $33.67 $7.67 $5.44 Correct! Correct! 1 / 1 pts Question 23 Figure 8-7 Figure 8-7 shows the cost structure for a firm. Refer to Figure 8-7. When the output level is 100 units, average fixed cost is $10. $8. Correct! Correct!
$5. This cannot be determined from the diagram. 1 / 1 pts Question 24 Figure 8-7 Figure 8-7 shows the cost structure for a firm. Refer to Figure 8-7. If output is 100 units, what is the fixed cost of production? $8 $800 Correct! $1,000 This cannot be determined from the diagram. 1 / 1 pts Question 25 If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm's total variable cost at that level of output is $1,000. $700. Correct! $300. impossible to determine without additional information. 1 / 1 pts Question 26 If, when a firm doubles all its inputs, its average cost of production decreases, then production displays diseconomies of scale. diminishing returns. economies of scale. Correct! Correct! declining fixed costs. 1 / 1 pts Question 27 Figure 8-10
Refer to Figure 8-10 . Identify the minimum efficient scale of production. Q a Q Correct! b Q c Q d 1 / 1 pts Question 28 Economies of scale exist as a firm increases its size in the long run because of all of the following except the firm can afford more sophisticated technology in production. labor and management can specialize even further in their tasks. as a firm expands its production, its profit margin per-unit of output increases. Correct! Correct! as a larger input buyer, the firm can purchase inputs at a lower per unit cost. 1 / 1 pts Question 29 Article Summary According to the Department of Agriculture, net farm income will fall from $91.1 billion in 2014 to $58.3 billion in 2015, a 36 percent drop and the largest percentage decline since 1983. Falling prices on corn and soybeans are responsible for a portion of the decline in income, as are lower prices for dairy products, hogs, and chickens. The USDA is, however, predicting lower production costs due to falling prices for energy, seed, fertilizer, and pesticides. Source: Jesse Newman, "U.S. Farm Income to Fall to Lowest Level in Nine Years," Wall Street Journal , August 25, 2015. Refer to the Article Summary. All else equal, the lower production costs should help offset some of the falling income and prevent losses from occurring in the agricultural sector. reduce the equilibrium quantity of agricultural output. keep profits from falling to an even lower level. Correct! keep prices from falling to an even lower level. 1 / 1 pts Question 30 Figure 9-4
Figure 9-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market. Refer to Figure 9-4. If the market price is $30 and the firm is producing output, what is the amount of the firm's profit or loss? loss of $1,080 Correct! loss of $2,520 profit of $1,440 profit of $1,300