question
If the marginal cost of producing the first unit of some good is $20 and the marginal cost of producing the second unit is $30, the average variable cost of producing 2 units is
answer
$25
question
Marginal revenue product of labor
answer
additional amount of revenue a firm can generate by hiring one additional unit of labor
question
Two factors that change Marginal Revenue Product of Labor
answer
Marginal productivity of labor, price of good produced by labor
question
characteristics of public goods
answer
non excludable, non rivalrous
question
Economy produces TV and shoes. What can cause production possibility curve to shift outward?
A) decrease in demand for shoes
B) increase in labor force
c) change in consumer taste for tv
D) increase in prices of resources to produce both goods
E) increase in price of both goods
A) decrease in demand for shoes
B) increase in labor force
c) change in consumer taste for tv
D) increase in prices of resources to produce both goods
E) increase in price of both goods
answer
B) increase in labor force
question
if firm is experiencing economies of sale, which will decrease as output increases
A) fixed cost
B) long run total cost
c) marginal cost
D) long run average total cost
E) marginal revenue
A) fixed cost
B) long run total cost
c) marginal cost
D) long run average total cost
E) marginal revenue
answer
D) long run average total cost
question
which is true for mono comp in long run?
a) earns normal profit
b) price = marginal cost
c) allocatively efficient
d) price taker
e) produce at min average total cost
a) earns normal profit
b) price = marginal cost
c) allocatively efficient
d) price taker
e) produce at min average total cost
answer
a) earns normal profit
question
marginal resource factor cost is
a) change in total resource cost caused by production of 1 more unit of output
b) change in total revenue cause by addition of 1 more unit of a resource
c) change in total resource cost caused by addition of one more unit of resource
d) total resource cost divided by number of inputs used
a) change in total resource cost caused by production of 1 more unit of output
b) change in total revenue cause by addition of 1 more unit of a resource
c) change in total resource cost caused by addition of one more unit of resource
d) total resource cost divided by number of inputs used
answer
c) change in trc by one more unit of resource
question
what is true about msc and mpc in a negative externality
answer
msc>MSP
question
which of the following is a result of increasing returns to sale?
a) upward sloping short run mc curve
b)downward sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e)diminishing returns
a) upward sloping short run mc curve
b)downward sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e)diminishing returns
answer
c) downward sloping atc curve
question
if the government imposes a per-unit tax on the output of a monopoly with a downward-sloping demand curve, the burden of the tax will be
a) borne entirely by consumers
b)borne entirely by monopolist
c) borne entirely by government
d)shared by government and monopolist
e) shared by consumer and monopolist
a) borne entirely by consumers
b)borne entirely by monopolist
c) borne entirely by government
d)shared by government and monopolist
e) shared by consumer and monopolist
answer
e) shared by consumer and monopolist
question
which of the following is a result of increasing returns to sale?
a) upward sloping short run marginal cost curve
b) downward-sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e) diminishing returns
a) upward sloping short run marginal cost curve
b) downward-sloping marginal physical product of labor curve
c) downward sloping long run average total cost curve
d) diseconomies of sale
e) diminishing returns
answer
c) downward sloping long run atc curve
question
What three things can increase wage elasticity of demand?
answer
increase in subsittue products, increase ratio of labor cost: total cost, increase price elasticity of demand
question
for resource market, what is the ratio for profit max?
answer
max: MRP/MFc (labor)= MRP/MFc( capital)=1
question
for resource market, what is the ratio for cost min?
answer
MPP/MFc=MPP/MFc
question
increase in supply of coffee could be caused by
a) decrease in price of cream, which is a complement
b) decrease in cost of labor to produce coffee
c) increase in consumer income
d)decrease in demand for coffee
e)increase in price of coffee
a) decrease in price of cream, which is a complement
b) decrease in cost of labor to produce coffee
c) increase in consumer income
d)decrease in demand for coffee
e)increase in price of coffee
answer
b) decrease in cost of labor used to produce coffee
question
sam can knit 5 sweaters or make 4 blankets. Rob can knit 10 sweaters or 6 blankets. who (if any) has comparative or absolute advantage in sweaters and blankets.
answer
Rob has comparative advantage in sweaters. Sam has comparative advantage in making blankets. Rob has absolute advantage in sweaters and blankets.
question
if a good is available free of charge, an individual will consume it until
a) marginal utility is zero
b) average utility is zero
c) total utility is zero
d) marginal utility equals average utility
e) marginal utility equals total utility
a) marginal utility is zero
b) average utility is zero
c) total utility is zero
d) marginal utility equals average utility
e) marginal utility equals total utility
answer
a) marginal = 0
question
if a competitive firm pays it workers the value of the marginal product of the last worker hired, which of the following is true?
a)firm will not earn any econ profit
b)workers will look for employment elsewhere
c) wage will be less than marginal product
d) the firm will not maximize profits
e) the contribution of the last worker hired to the firm's profit will be zero
a)firm will not earn any econ profit
b)workers will look for employment elsewhere
c) wage will be less than marginal product
d) the firm will not maximize profits
e) the contribution of the last worker hired to the firm's profit will be zero
answer
e) the contribution of the last worker hired to the firm's profit will be zero
question
what are the requirements for price discrimination
answer
1) no resale 2) firm is a price maker or monopoly 3) separate markets for consumers based on different price elasticities of demand 4) price differences not based on cost differences
question
public goods are underproduced in a competitive market because the free-rider problem causes which of the following
a) fixed supply
b) effective price ceilings
c)reduced market demand
d) negative externalities
e) increased imports
a) fixed supply
b) effective price ceilings
c)reduced market demand
d) negative externalities
e) increased imports
answer
c) reduced market demand
question
If labor is the only variable input of a firm and the marginal product of labor is falling, the firm will always produce
a) more than the profit maximizing level fo output
b) less than the profit maximizing level of output
c) at level of output where average total cost is a minimum
d) at level where marginal costs are rising
e) at a level fo output where average variable costs are falling
a) more than the profit maximizing level fo output
b) less than the profit maximizing level of output
c) at level of output where average total cost is a minimum
d) at level where marginal costs are rising
e) at a level fo output where average variable costs are falling
answer
d) at level where marginal cost are rising
question
an individual's labor supply curve is derived from that person' preference about the trade off between income and
answer
lesiure
question
nominal wage vs. real wage
answer
Nominal wage means the wage in dollar terms; real wage means the wage in terms of what you can afford to buy with it.
question
if a normal good is produced in a competitive market, which of the following could cause price of good to increase and the quantity to decrease?
a) decrease in the average income of consumers and an increase in the number of producing firms
b)an increase in the average income of consumers and an increase in the number of producing firms
c) decrease in the number of consumers and a decrease in the price of a variable input
d) an increase in the average income of consumers and an increase in the price of a variable input
e) an increase in the price of a substitute good and an increase in the number of producing firms
a) decrease in the average income of consumers and an increase in the number of producing firms
b)an increase in the average income of consumers and an increase in the number of producing firms
c) decrease in the number of consumers and a decrease in the price of a variable input
d) an increase in the average income of consumers and an increase in the price of a variable input
e) an increase in the price of a substitute good and an increase in the number of producing firms
answer
d)
question
pollution should be reduced until
answer
marginal benefit = marginal cost
question
all of the following are included in computing the opportunity cost of attending college except
a) interest paid on student loans
b) wages the student gave up to attend college
c) money spent on college tuition
d) money spent on clothing expenses
e) money spent on books and supplies
a) interest paid on student loans
b) wages the student gave up to attend college
c) money spent on college tuition
d) money spent on clothing expenses
e) money spent on books and supplies
answer
d) money on clothes
question
which of the following statements is true for a perfectly competitive firm but not true for a monopoly?
a) firm's pirce equal to average revenue
b) firm cannot affect the market price for its good
c) its difficult for other firms to inter the industry
d) the demand for product is unit elastic
e) firm must lower its price in order to sell more of its product
a) firm's pirce equal to average revenue
b) firm cannot affect the market price for its good
c) its difficult for other firms to inter the industry
d) the demand for product is unit elastic
e) firm must lower its price in order to sell more of its product
answer
b) can't affect market price
question
a factor of production will not earn econ rent with its supply is
answer
perfectly elastic
question
unregulated market with negative externalities will have
answer
society's marginal cost higher than firms marginal cost
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
