Production and Costs TP and MP Sample Questions

Slides:

Advertisements

Similar presentations

1 Chapter 6 Practice Quiz Tutorial Production Costs ©2004 South-Western.

Advertisements

Reveals functional relation between factors of input and output.

11 OUTPUT AND COSTS © 2012 Pearson Addison-Wesley.

Production and Costs Sample Questions

Managerial Economics-Charles W. Upton Properties of Production Functions.

11 OUTPUT AND COSTS. 11 OUTPUT AND COSTS Notes and teaching tips: 5, 8, 26, 29, 33, and 57. To view a full-screen figure during a class, click the.

Managerial Economics & Business Strategy Chapter 4 The Theory of Individual Behavior.

1 ATC AVC MC Relationship Between Average and Marginal Costs Costs per unit Quantity Q1Q1 B Q0Q0 A.

Costs Chapter 12-1 (my version of it). Laugher Curve A woman hears from her doctor that she has only half a year to live. The doctor advises her to marry.

The Law of DMP1 The Law of Diminishing Marginal Returns.

How Do Firms Turn Inputs Into Output? DO NOW: Do all workers add the same amount to the output of a firm? 1.

Production Function, SARBJEET KAUR Lecturer in Economics GCCBA-42,Chandigarh

CHAPTER. 7 LAW OF VARIABLE PROPORTIONS

1 Chapter 7 Production Costs Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western College Publishing.

Economics 2010 Lecture 11 Organizing Production (I) Production and Costs (The short run)

CHAPTER 11 Output and Costs

Supply Review Economics Mr. Bordelon.

Marginal Production shrinks as each unit of input is added

1 Chapter 7 Production Costs Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western College Publishing.

THEORY OF PRODUCTION MARGINAL PRODUCT.

Production Chapter 9. Production Defined as any activity that creates present or future utility The chapter describes the production possibilities available.

COSTS OF PRODUCTION How do producers decide how much of a good to produce?

AP Microeconomics Mr. Bordelon

Costs of Production How much to produce?. Labor and Output How the number of workers affects total production?

Increasing, Diminishing, and Negative Marginal Returns Labor (number of workers) Marginal Product of labor (beanbags per hour) –1 –2.

Economic Profit, Production and Economies of Scale.

1.Productivity 2.Costs of Production Amount of goods and services produced per unit of input How efficiently their resources are being used in production.

Production and Costs: Production Function

COSTS OF THE CONSTRUCTION FIRM

Michael Parkin ECONOMICS 5e Output and Costs 1.

AP Economics Mr. Bordelon

Theory of Production & Cost BEC Managerial Economics.

T HE P RODUCTION F UNCTION Chapter 7: Production and Costs 6/1/

Lesson Objectives: By the end of this lesson you will be able to: *Explain how firms decide how much labor to hire in order to produce a certain level.

1 ECONOMICS 200 PRINCIPLES OF MICROECONOMICS Professor Lucia F. Dunn Department of Economics.

Managerial Economics Short-Run Production

Production in the Short Run 1. In the short run n some inputs are fixed (e.g. capital) n other inputs are variable (e.g. labour) 2. Inputs are combined.

Cost of Production Chapter 5 Section 2 As a business –Ask yourself how many workers do I hire? –Marginal product of labor Change in output for hiring.

1 Production Costs Economics for Today by Irvin Tucker, 6 th edition ©2009 South-Western College Publishing.

The Law of Variable Proportions (Behind the Supply Curve, Part I)

The Theory of production

The Short Run Production Function

MAKING PRODUCT DECISIONS Economics, March  Remember: we are the supplier, making decisions about what to PRODUCE!

EFarmer.us Production Function - Hay Copyright 2009 eStudy.us Production Function shows the relationship between the level of.

Essential Question How much of a good or service should a business produce?

Law of Variable Proportions

9.1 Input Demand: Labor and Land Markets Input demand is said to be a Derived demand because it is dependent on the demand for the outputs those inputs.

The Law of Variable Proportions & The Law of Diminishing Marginal Products.

Chapter 5, Section 2 The Theory of Production. Production Theory of production = relationship between the factors of production and output of goods and.

Production Drives Supply  Factors of Production  Total Product, Average Product & Marginal Product  Short Run vs. Long Run  Scale of Production & Returns.

Average product is the output per worker

Total, Average and Marginal Products The Total Product Curve shows the maximum output attainable from a given amount of a fixed input (capital) as the.

AP Economics Mr. Bernstein Module 54: The Production Function November 2015.

Chapter 5 Section 2 The Theory Of Production. Production Functions Figure that shows how total output changes based on the change of a single variable.

The Theory of the Firm What is Theory of the Firm? Short v. Long Run Total v. Average v. Marginal Product.

STAGES OF PRODUCTION. What you write: The stages of production answers the question, “how many workers do we hire?” There are three stages of production:

Chapter 6 Production, Cost, and Profit © 2001 South-Western College Publishing.

(section 2) Costs of Production

Chapter 4: Production and the Costs of Production

Chapter 6 Production.

Mr. Bernstein Module 54: The Production Function November 2016

The Production Function

Production in the Short Run

Chapter 5 Section 2.

The Theory of Production

The Production Function

Chapter 7 Production Costs

Marginal product first rises due to increasing marginal returns and then falls due to diminishing marginal returns. Adding workers first increases output.

Presentation transcript:

Production and Costs TP and MP Sample Questions AP Economics Mr. Bordelon

Total Product and Marginal Product Labor per Day Total Products (units per period) 1 10 2 30 3 70 4 90 5 100 6 107 7 110 8 105 The marginal product of the second worker is: 10. 15. 20. 30. 0.

Total Product and Marginal Product Labor per Day Total Products (units per period) 1 10 2 30 3 70 4 90 5 100 6 107 7 110 8 105 The marginal product of the second worker is: 10. 15. 20. 30. 0.

Total Product and Marginal Product Labor per Day Total Products (units per period) 1 10 2 30 3 70 4 90 5 100 6 107 7 110 8 105 Negative marginal returns begin when the _____ worker is added. fifth sixth seventh eighth fourth

Total Product and Marginal Product Labor per Day Total Products (units per period) 1 10 2 30 3 70 4 90 5 100 6 107 7 110 8 105 Negative marginal returns begin when the _____ worker is added. fifth sixth seventh eighth fourth

Suppose that the first four units of a variable input generate corresponding total outputs per period of 200, 350, 450, and 500, respectively. The marginal product of the second unit of input is: 50. 100. 150. 200. 350.

Suppose that the first four units of a variable input generate corresponding total outputs per period of 200, 350, 450, and 500, respectively. The marginal product of the second unit of input is: 50. 100. 150. 200. 350.

When hiring units of labor between zero and L1 units of labor, which of the following statements is true? The marginal product of labor is increasing. The marginal product of labor is decreasing. Total product is increasing at a diminishing rate. Average product is decreasing. Total product is increasing at a constant rate.

When hiring units of labor between zero and L1 units of labor, which of the following statements is true? The marginal product of labor is increasing. The marginal product of labor is decreasing. Total product is increasing at a diminishing rate. Average product is decreasing. Total product is increasing at a constant rate.

Hiring L2 units of labor results in total product attaining a _____ and the marginal product of labor _____. minimum; being equal to zero maximum; being equal to zero maximum; being positive minimum; falling, but still being positive maximum; being negative

Hiring L2 units of labor results in total product attaining a _____ and the marginal product of labor _____. minimum; being equal to zero maximum; being equal to zero maximum; being positive minimum; falling, but still being positive maximum; being negative

You own a small deli that produces sandwiches, soups, and other items for customers in your town. Which of the following is a decision most likely to be made in the long run at your deli? You order more breadsticks from the local bakery. You ask your beverage distributor to deliver more soft drinks next week. You decide to keep the deli open two more hours on the two busiest nights of the week. You place a newspaper advertisement to attract part-time workers from the local college. You renovate the second floor of your building to increasing the size of the dining room.

You own a small deli that produces sandwiches, soups, and other items for customers in your town. Which of the following is a decision most likely to be made in the long run at your deli? You order more breadsticks from the local bakery. You ask your beverage distributor to deliver more soft drinks next week. You decide to keep the deli open two more hours on the two busiest nights of the week. You place a newspaper advertisement to attract part-time workers from the local college. You renovate the second floor of your building to increasing the size of the dining room.

Assuming that all other factors of production are held constant, marginal product is the change in _____ output resulting from a one-unit change in _____. total; a variable input total; a fixed input total; average product per unit; a fixed input total; consumption

Assuming that all other factors of production are held constant, marginal product is the change in _____ output resulting from a one-unit change in _____. total; a variable input total; a fixed input total; average product per unit; a fixed input total; consumption