question
Josh is eating pizza at his favorite Italian restaurant. Below is his utility from this consumption: Table 19.1
Refer to Table 19.1. The marginal utility Josh enjoys from the fourth slice of pizza is
Refer to Table 19.1. The marginal utility Josh enjoys from the fourth slice of pizza is
answer
5 units.
question
Price discrimination occurs when
answer
Sellers charge two separate prices for the same product to separate consumers
question
If a product has a high marginal utility, then
answer
A consumer is willing to pay a high price for it
question
A consumer maximizes total utility from a given amount of income when the
answer
Marginal utility per dollar obtained from the last unit of each good is the same
question
Which of the following is not a determinant of demand
answer
The cost of the factor inputs
question
Josh is eating pizza at his favorite Italian restaurant. Below is his utility from this consumption: Table 19.1
Refer to Table 19.1. What is Josh's total utility after consuming the third slice of pizza?
Refer to Table 19.1. What is Josh's total utility after consuming the third slice of pizza?
answer
54 units
question
Rosa is willing to pay $200 for the iPhone, but the actual price is $400. This means
answer
Rosa will not buy an iPhone
question
The marginal utility from a good declines as more of it is consumed in a given period. This is the definition of the
answer
Law of diminishing marginal utility
question
Which of these examples is an example of price discrimination?
answer
Seniors pay one price at the movie theater and adults pay more
question
See Figure 19.1. Lu's consumer surplus is equal to
answer
$500
question
Which of the following statements about the relationship between economic costs and accounting costs is true?
answer
Accounting costs are always less than or equal to economic costs
question
Table 21.1
Units of Labor Units of Output
0 0
1 15
2 35
3 45
4 52
What is the marginal physical product of the second unit of labor in Table 21.1?
Units of Labor Units of Output
0 0
1 15
2 35
3 45
4 52
What is the marginal physical product of the second unit of labor in Table 21.1?
answer
20
question
Table 21.2
Output (units per day)
0
10
20
30
Total cost (dollars per day)
$40
$54
$62
$80
At 20 units of output in Table 21.2, the average variable cost is
Output (units per day)
0
10
20
30
Total cost (dollars per day)
$40
$54
$62
$80
At 20 units of output in Table 21.2, the average variable cost is
answer
$1.10 per unit.
question
Implicit costs
answer
Are the value of resources used, for which no monetary payment is made.
question
Table 21.2
Output (units per day)
0
10
20
30
Total cost (dollars per day)
$40
$54
$62
$80
Average fixed cost at 20 units of output in Table 21.2 is
Output (units per day)
0
10
20
30
Total cost (dollars per day)
$40
$54
$62
$80
Average fixed cost at 20 units of output in Table 21.2 is
answer
$2.00
question
The marginal cost curve intersects the minimum of which of the following cost curves?
answer
ATC
question
Sam's surf shop has total costs of $2,000 when it is not producing any surfboards. This means that
answer
Fixed costs are $2,000
question
When the average total cost curve is rising, the marginal cost curve will be
answer
Above the average total cost curve
question
Table 21.2
Output (units per day)
0
10
20
30
Total cost (dollars per day)
$40
$54
$62
$80
At 10 units of output in Table 21.2, the total fixed cost is
Output (units per day)
0
10
20
30
Total cost (dollars per day)
$40
$54
$62
$80
At 10 units of output in Table 21.2, the total fixed cost is
answer
$40
question
In economics, the long run is considered to be
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The time period when all costs are variable.
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The perfectly competitive market structure includes all of the following except
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Large advertising budgets
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Assuming an entrepreneur does not pay herself, the $1,000 she could earn as an employee elsewhere is considered
answer
An implicit cost
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Economic profit is
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Less than accounting profit by the amount of implicit cost.
question
The demand curve confronting a competitive firm is
answer
Horizontal, while market demand is downward-sloping.
question
Short-run profits are maximized at the rate of output where
answer
Marginal revenue is equal to marginal cost
question
Refer to Figure 22.3 for a perfectly competitive firm. At a market price of $23, total profits are maximized at an output of
answer
39
question
Profit
answer
Is the difference between total revenue and total cost
question
A catfish farmer will shut down production when
answer
Price falls below minimum AVC
question
A perfectly competitive firm should expand output when
answer
P > MC
question
For the perfectly competitive firm, the marginal revenue is always
answer
Constant, equal to price
question
When technology improves, the firm's marginal cost curve shifts
answer
Downward, and supply increases
question
The decision to enter or exit an industry is known as the
answer
Investment decision
question
The marginal cost curve
answer
Is the short-run supply curve for a competitive firm at prices above the AVC curve
question
Adam is the owner/operator of a flower shop. Last year he earned $250,000 in total revenue. His explicit costs were $175,000 paid to his employees and suppliers (assume that this amount represents the total opportunity cost of these resources). During the year he received three offers to work for other flower shops with the highest offer being $75,000 per year. Which of the following is true about Adam's accounting and economic profit?
answer
Accounting profit = $75,000; economic profit = $0
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