Ques: 1

D. In the short run, at least one of the firm's inputs is fixed, while in the long run, a firm is able to vary all its inputs and adopt new technology. Is the amount of time that separated the short run from the long run the same for every firm? No

Ques: 2

A. A relationship between the amounts of outputs of different products the firm can produce with fixed amounts of inputs. What does the short-run production function hold constant? D. The amount of all inputs

Ques: 3

1) Fixed (2) Variable (3) Variable (4) Fixed (5) Fixed

Ques: 4

Workers	Cars	Fixed Cost	Variable cost	Total Cost	Average Total cost
0	0	$5,000	$0	$5,000	-
1	20	$5,000	$4,000	$9,000	$450
2	30	$5,000	$8,000	$13,000	$433.33
3	40	$5,000	$12,000	$17,000	$425
4	50	$5,000	$16,000	$21,000	$420
5	55	$5,000	$20,000	$25,000	$454.54

Ques: 5 The firm's fixed cost of production is $21,000, and its variable cost of production is $460,000.

Ques: 6 E. at least one of the firm's inputs is fixed, while in the long run, the firm is able to vary all its inputs, adopt new technology, and change the size of its physical plant.

Ques: 7 C. adding more of a variable input to the same amount of fixed input will eventually cause the marginal product of the variable input to decline. Does it apply in the long run? No

Ques: 8

Workers	Total Product	Marginal Product	Average Product
0	0	-	-
1	100	100	100
2	210	110	105
3	340	130	113.33
4	460	120	115
5	560	100	112
6	650	90	108.33
7	730	80	104.28

Ques: 9

Labor	Capital	Output	Marginal Product
0	1	0	-
1	1	160	160
2	1	480	320
3	1	640	160
4	1	720	80
5	1	760	40

E. are experienced when the third worker is hired.

Ques: 10

The marginal product of the first worker is 2 yards per day. The marginal product of the second worker is 3 yards per day. The marginal product of the third worker is 4 yards per day. (1) returns to scale

Ques: 11

Variable cost = $40,000 Average variable cost = $8 Average fixed cost = $2 (1) decreases

Ques: 12 Marginal cost = $27 Total cost = $69 x 30 = $2,070 Variable cost = $50 x 30 = $1,500 Fixed cost = Total cost - Variable cost = $570

Explanation:

1. The fixed factors remain constant in the short run due to the limitation of time and resources.

2. PPF shows the quantity of two goods that can be produced with a fixed amount of resources.

3. Factors which change with the level of production are variable while the factors which remain the same irrespective of the production are called fixed costs.

4. Total Cost = Fixed Cost + Variable cost

Average total cost = Total Cost / Output

5. Fixed cost = $18,000 + $3,000 = $21,000

Variable cost = 2,000 (60 + 70 + 100) = 2,000 x $230 = $460,000

6. In the short-run factors are either fixed or variable depending on their use while in a long run all the factors can be changed, therefore all factors are variable.

7. Adding more variable factors with constant units of fixed factor decreases the efficiency of fixed factors and productivity of variable factors resulting in diminishing returns.

8. Marginal Product = TP_n - TP_n-1

Average product = Total Product / Units of the variable factor

9. Marginal Product = TP_n - TP_n-1

The marginal product starts diminishing from the third worker.

10. Marginal Product = TP_n - TP_n-1

11. Variable cost = Total Cost - Fixed cost

Average variable cost = Variable cost / Output

Average fixed cost = Fixed cost / Output

12. Total Cost = ATC x Quantity

Variable cost = AVC x Quantity

Fixed cost = Total cost - Variable cost

This is what i got for the 12 questions above:

2 i got D and B or is it A and D

5 i got 21,000 for fixed and 4460,000 for variable or is it 21,000 for fixed or 460,000 or variable

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\f3. [Related to the Making the Connection] For Jill Johnson's pizza restaurant, explain whether each of the following is a fixed or variable cost. The payment she makes on her fire insurance policy is a (1). cost. The payment she makes to buy pizza dough is a (2) cost. The wages she pays her workers is a (3) cost. The lease payment she makes to her landlord who owns the building where her store is located is a (4) cost. The $300-per-month payment she makes to her local newspaper for running her weekly advertisements is a (5) cost. (1) O variable (2) O variable (3) O variable (4) O variable (5) O variable O fixed O fixed O fixed O fixed O fixed 4. Suppose that Bill owns an automobile collision repair shop and the table below shows the quantity of cars repaired per month according to how many workers Bill hires. Assume he pays each worker $4,000 per month and his fixed cost equals $5,000 per month. Using the information provided, complete the table given below. (Enter your responses rounded to two decimal places.) Quantity of Quantity of Cars Average Total Workers per Month Fixed Cost Variable Cost Total Cost Cost 0 $5,000 20 30 DAWN- 40 50 555. Meat Packers, Incorporated (MPI) preserves and packages various kinds of meats for transportation to grocery stores. To prepare and transport each meat package to a grocery store, the firm must purchase $60 in raw meat and pay $70 in wages for labor and $100 in fuel costs. In addition, the firm rents a factory for $18,000 per month and makes $3,000 in monthly payments on meat packaging equipment. Suppose the firm prepares and transports 2,000 packages of meat per month. What are the firm's fixed and variable costs of production in a given month? The firm's fixed cost of production is $ and its variable cost of production is $ . (Enter numeric responses using integers.) 6. What is the difference in the short run and the long run? In the short run, O A. all of the firm's inputs are variable, while in the long run, the firm is able to vary all its inputs as well as adopt new technology and change the size of its physical plant. O B. at least one of the firm's inputs is fixed, while in the long run, the firm is either able to vary all its inputs, adopt new technology, or change the size of its physical plant. O C. at least one of the firm's inputs is fixed, while in the long run, at least one of the firm's inputs is variable. O D. all of the firm's inputs are fixed, while in the long run, the firm is able to vary all its inputs, adopt new technology, and change the size of its physical plant. O E. at least one of the firm's inputs is fixed, while in the long run, the firm is able to vary all its inputs, adopt new technology, and change the size of its physical plant.\f9. Consider a production process where flowers are grown (the output) using gardeners (labor) and greenhouses (capital). The quantity of flowers grown per day with various combinations of labor and capital are shown in the table. Fill in the marginal product of labor in the table below. (Enter your responses as integers.) Labor Capital Output Marginal Product of Labor 0 160 480 640 720 760 Does the production of flowers experience the effects of the law of diminishing returns"? The effects of the law of diminishing returns O A. are never experienced. O B. are experienced when the fourth worker is hired. O C. are experienced when the second worker is hired. O D. are experienced when the fifth worker is hired. O E. are experienced when the third worker is hired. 1: Definition Law of diminishing returns The principle that, at some point, adding more of a variable input, such as labor, to the same amount of a fixed input, such as capital, will cause the marginal product of the variable input to decline. 10. Suppose Charles owns a lawn-mowing company. Assume that without workers, no yards are mowed. When he hires one worker, he is able to mow 2 yards per day. With two workers, he can mow 5 yards per day, and with three workers, he can mow 9 yards per day. The marginal product of the first worker is yards per day. The marginal product of the second worker is yards per day. Last, the marginal product of the third worker is yards per day. The marginal product of labor potentially increases (from one to three workers) due to (1) (1) O returns to scale network externalities O economies of scale O specialization