Exam_3_Practice_Questions
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Exam_3_Practice_Questions

Course Number: ECON 153, Fall 2007

College/University: Scranton

Word Count: 5199

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Practice Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To buy the necessary equipment, she withdrew $20,000 from her savings, (which paid 3 percent interest) and borrowed $30,000 from her uncle, whom she pays 3 percent...

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Choice Practice Multiple Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To buy the necessary equipment, she withdrew $20,000 from her savings, (which paid 3 percent interest) and borrowed $30,000 from her uncle, whom she pays 3 percent interest per year. Last year she paid $25,000 for ingredients and had revenue of $60,000. She asked Louis the accountant and Greg the economist to calculate her profit for her. a. Louis says her profit is $34,100 and Greg says her profit is $6,500. b. Louis says her profit is $34,100 and Greg says she lost $6,500. c. Louis says her profit is $35,000 and Greg says she lost $5,000. d. Louis says her profit is $33,500 and Greg says her profit is 33,500. 2. Johnny is a sophomore in college and has a 1.5 cumulative grade point average (GPA). Johnny's cumulative GPA will fall even further next semester if he performs worse than (i) his cumulative GPA. (ii) he ever performed before. (iii) he did last semester. a. (i) and (ii) b. (i) and (iii) c. (ii) and (iii) d. All of the above are correct. 3. Johnny is a sophomore in college and has a 1.5 cumulative grade point average (GPA). Johnny's cumulative GPA will be better next semester if he (i) performs better than he did last semester. (ii) performs better than his cumulative GPA. (iii) gives an average performance. a. b. c. d. (ii) only (iii) only (i) and (ii) (ii) and (iii) ____ ____ Figure 13-5 ____ 4. Refer to Figure 13-5. Which of the following can be inferred from the figure above? (i) Marginal cost is increasing at all levels of output. (ii) Marginal product is increasing at low levels of output. (iii) Marginal product is decreasing at high levels of output. a. b. c. d. (i) and (ii) (ii) and (iii) (i) and (iii) (ii) only Figure 13-6 The curves below reflect information about the cost structure of a firm. ____ 5. Refer to Figure 13-6. Curve A is U-shaped because of a. diminishing marginal product. ____ ____ b. increasing marginal product. c. the fact that increasing marginal product follows decreasing marginal product. d. the fact that decreasing marginal product follows increasing marginal product. 6. Refer to Figure 13-6. Which of the curves is most likely to represent average fixed cost? a. A b. B c. C d. D 7. Consider the following information about bread production at Beth's Bakery: Worker 1 2 3 4 5 6 7 Marginal Product 5 7 10 11 8 6 4 ____ 8. ____ 9. ____ 10. ____ 11. Beth pays all her workers the same wage and labor is her only variable cost. From this information we can conclude that Beth's marginal cost a. declines as output increases from 0 to 33, but increases after that. b. declines as output increases from 0 to 11, but increases after that. c. increases as output increases from 0 to 11, but declines after that. d. is constant. For Firm A, when four units of output are produced, the total cost is $175 and the average variable cost is $33.75. What would the average fixed cost be if ten units were produced? a. $4 b. $10 c. $40 d. $135 For Firm A, when 4 units of labor, the only variable input into the production process, are hired, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2, what is the average total cost of production when labor is 5 units? a. $2.00 b. $20.00 c. $20.80 d. $22.80 Suppose that when 2 units of labor, the only variable input into the production process, are hired, the total cost of production is $100 and that when 3 units of labor are hired the total cost of production is $120. In addition, assume that the variable cost per unit of labor is the same regardless of the number of units of labor that are hired. What is the firm's fixed cost? a. $40 b. $60 c. $80 d. $100 The average total cost when 5 units of output are produced is $30, and the marginal cost of the sixth unit of output is $60. What is the average total cost when six units are produced? a. b. c. d. $10 $25 $30 $35 Table 13-8 Quantity of gigaplots Fixed Cost Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 1 2 3 4 5 6 7 8 $13 $28 $64 $38 $70 $110 $108 $133 $185 ____ 12. Refer to Table 13-8. What is the average total cost of producing 6 gigaplots at Jimmy's Gigaplot factory? a. $16.34 b. $22.00 c. $22.17 d. $22.57 ____ 13. Refer to Table 13-8. What is the average total cost of producing 2 gigaplots at Jimmy's Gigaplot factory? a. $14.00 b. $18.50 c. $22.50 d. $26.50 ____ 14. Refer to Table 13-8. What is the average variable cost of producing 6 gigaplots at Jimmy's Gigaplot factory? a. $16 b. $17 c. $18 d. $19 Table 13-9 Output 0 10 20 30 40 50 Total Cost 40 60 90 130 180 240 ____ 15. Refer to Table 13-9. What is average fixed cost when output is 40 units? a. $1.00 b. $3.32 c. $5.00 d. $8.00 ____ 16. Refer to Table 13-9. What is average variable cost when output is 50 units? a. $3.60 b. $4.00 c. $4.40 d. $4.80 ____ 17. Refer to Table 13-9. What is the total fixed cost for this firm? a. $20 b. $30 c. $40 d. $50 Table 13-10 Consider the following table of long-run total cost for four different firms Quantity Firm 1 Firm 2 Firm 3 Firm 4 1 $210 $180 $120 $150 2 $340 $350 $250 $300 3 $490 $510 $390 $450 4 $660 $660 $540 $600 5 $850 $800 $700 $750 6 $1,060 $930 $870 $900 7 $1,290 $1,050 $1,050 $1,050 ____ 18. Refer to Table 13-10. Which firm has diseconomies of scale over the entire range of output? a. Firm 1 b. Firm 2 c. Firm 3 d. Firm 4 ____ 19. Refer to Table 13-10. Which firm has economies of scale over the entire range of output? a. Firm 1 b. Firm 2 c. Firm 3 d. Firm 4 ____ 20. A profit-maximizing firm in a competitive market is able to sell its product for $7. At its current level of output, the firm's average total cost is $10. The firm's marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a a. profit of more than $27. b. profit of exactly $27. c. loss of more than $27. d. loss of exactly $27. Scenario 14-2 Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. ____ 21. Refer to Scenario 14-2. At Q = 999, the firm's total cost amounts to a. $10,985. b. $10,990. c. $10,995. d. $10,999. ____ 22. Refer to Scenario 14-2. At Q = 999, the firm's profit amounts to a. $993. b. $997. c. $1,003. d. $1,007. ____ 23. Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average cost of production equal to $5, and is earning $240 economic profit in the short run. What is the current market price? a. $9 b. $10 c. $11 d. $12 ____ 24. Economists normally assume that the goal of a firm is to (i) sell as much of their product as possible. (ii) set the price of their product as high as possible. (iii) maximize profit. a. (i) and (ii) are true. b. (ii) and (iii) are true. c. (iii) is true. d. (i) and (iii) are true. ____ 25. Economists normally assume that the goal of a firm is to (i) make profit as large as possible even if it means reducing output. (ii) make profit as large as possible even if it means incurring a higher total cost. (iii) make revenue as large as possible. a. (i) and (ii) are true. b. (i) and (iii) are true. c. (ii) and (iii) are true. d. (i), (ii), and (iii) are true. ____ 26. John owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements? a. wages John could earn washing windows b. dividends John's money was earning in the stock market before John sold his stock and bought a shoe-shine booth c. the cost of shoe polish d. Both b and c are correct. Scenario 13-1 Joe wants to start his own business. The business he wants to start will require that he purchase a factory that costs $400,000. Joe currently has $500,000 in the bank earning 3 percent interest per year. ____ 27. Refer to Scenario 13-1. If Joe purchases the factory with his own money, what is the annual implicit opportunity cost of purchasing the factory? a. $0 b. $3,000 c. $12,000 d. $15,000 ____ 28. Which of the following expressions is correct? a. accounting profit = total revenue - explicit costs b. economic profit = total revenue - implicit costs c. economic profit = total revenue - explicit costs d. Both a and b are correct. Scenario 13-2 Zach took $400,000 out of the bank and used it to start his new cookie business. The bank account pays 3 percent interest per year. During the first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box. Also, during the first year, the cookie business incurred costs that required outlays of money amounting to $9,000. ____ 29. Refer to Scenario 13-2. Zach's accounting profit for the year was a. $-494,000. b. $-6,000. c. $6,000. d. $12,000. ____ 30. When calculating a firm's profit, an economist a. will subtract only explicit costs from total revenue since these are the only costs that can be measured explicitly. b. will subtract only implicit costs from total revenue since these include both the costs that can be directly measured as well as the costs that can be indirectly measured. c. will subtract only the opportunity costs from total revenue since these include both the implicit and explicit costs of the firm. d. will subtract only the marginal cost since the cost of the next unit is the only relevant cost. ____ 31. Jane decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business she turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jane's economic profit from running her own business? a. $-65,000 b. $5,000 c. $10,000 d. $20,000 Figure 13-1 The figure below depicts a production function for a firm that produces cookies. ____ 32. Refer to Figure 13-1. With regard to cookie production, the figure implies a. diminishing marginal product of workers. b. diminishing marginal cost of cookie production. c. decreasing cost of cookie production. d. increasing marginal product of workers. ____ 33. Which of the following statements about a production function is correct for a firm that uses labor to produce output? a. The production function depicts the relationship between the quantity of labor and the quantity of output. b. The slope of the production function measures marginal cost. c. The quantity of output determines the maximum amount of labor the firm will hire. d. All of the above are correct. Table 13-1 Number of Workers 0 1 2 3 4 5 Total Output 0 Marginal Product -30 40 50 40 30 ____ 34. Refer to Table 13-1. What is total output when 4 workers are hired? a. 30 b. 40 c. 120 d. 160 Table 13-3 Number of Workers Number of Machines Output (corks produced per hour) Marginal Product of Labor Cost of Workers Cost of Machines Total Cost 1 2 3 4 5 6 7 2 2 2 2 2 2 2 5 10 20 35 55 70 80 ____ 35. Refer to Table 13-3. Assume Gallo's currently employs 5 workers. What is the marginal product of labor when Gallo's adds a 6th worker? a. 5 corks per hour b. 15 corks per hour c. 25 corks per hour d. 70 corks per hour ____ 36. Refer to Table 13-3. Assume Gallo's currently employs 2 workers. What is the marginal product of labor when Gallo's adds a 3rd worker? a. 5 corks b. 10 corks c. 20 corks d. 25 corks ____ 37. Refer to Table 13-3. Gallo's cork factory experiences diminishing marginal product of labor with the addition of which worker? a. The third worker. b. The fourth worker. c. The fifth worker. d. The sixth worker. ____ 38. The cost of producing the typical unit of output is the firm's a. average total cost. b. opportunity cost. c. variable cost. d. marginal cost. ____ 39. Marginal cost equals a. total cost divided by quantity of output produced. b. total output divided by the change in total cost. c. the slope of the total cost curve. d. the slope of the line drawn from the origin to the total cost curve. ____ 40. If marginal cost is rising, a. average variable cost must be falling. b. average fixed cost must be rising. c. marginal product must be falling. d. marginal product must be rising. ____ 41. Average total cost is very high when a small amount of output is produced because a. average variable cost is high. b. average fixed cost is high. c. marginal cost is high. d. marginal product is high. ____ 42. When marginal cost is less than average total cost, a. marginal cost must be falling. b. average variable cost must be falling. ____ 43. ____ 44. ____ 45. ____ 46. c. average total cost is falling. d. average total cost is rising. Average total cost is increasing whenever a. total cost is increasing. b. marginal cost is increasing. c. marginal cost is less than average total cost. d. marginal cost is greater than average total cost. Marginal cost is equal to average total cost when a. average variable cost is falling. b. average fixed cost is rising. c. marginal cost is at its minimum. d. average total cost is at its minimum. Which of the following expressions is correct? a. marginal cost = (change in quantity of output)/(change in total cost) b. average total cost = total cost/quantity of output c. total cost = variable cost + marginal cost d. average variable cost = quantity of output/total variable cost Whenever marginal cost is greater than average total cost, a. marginal cost is rising. b. marginal cost is falling. c. average total cost is rising. d. average total cost is falling. Table 13-7 Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. Output (Instructional Modules per Month) Average Fixed Cost Average Variable Cost Average Total Cost Fixed Costs Variable Costs Total Cost Marginal Cost 0 1 2 3 4 5 6 7 8 9 10 1,080 1,080 400 1,350 1,900 2,500 4,100 5,400 7,300 1,480 965 2,430 475 216 4,280 135 10,880 980 400 450 700 ____ 47. Refer to Table 13-7. What is the average variable cost for the month if six instructional modules are produced? a. $180.00 b. $533.33 c. $700.00 d. $713.33 Scenario 13-6 Farmer Jack is a watermelon farmer. If Jack plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 30 watermelons. If he plants 2 bags of seeds, he gets 50 watermelons. If he plants 3 bags of seeds he gets 60 watermelons. A bag of seeds costs $100, and the costs of seeds are his only costs. ____ 48. Refer to Scenario 13-6. Jack's production function will a. Decrease at a decreasing rate. b. Decrease at an increasing rate. c. Increase at a decreasing rate. d. Increase at an increasing rate. ____ 49. Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that marginal cost when three workers are hired is $40 and the average total cost when three workers are hired is $50. What is the total cost of production when three workers are hired? a. $50 b. $90 c. $120 d. $150 ____ 50. Which of the following costs of publishing a book is a fixed cost? a. Author royalties of 5% per book. b. The costs of paper and binding. c. Shipping and postage expenses. d. Composition, typesetting, and jacket design for the book. ____ 51. Miller Technologies has average variable costs of $1 and average total costs of $3 when it produces 500 units of output. The firm's total fixed costs equal a. $500 b. $1,000 c. $1,500 d. $2,000 ____ 52. If Franco's Pizza Parlor knows that the marginal cost of the 500 th pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30, then a. average costs are rising at Q = 500. b. average costs are falling at Q = 500. c. total costs are falling at Q = 500. d. average variable costs must be falling. ____ 53. Which of the following factors is most likely to shift IBM's total cost and marginal cost curves downward? a. A technological advance resulting increased in productivity. b. Higher property taxes charged by the municipal government. c. Increased wages to attract additional computer operators. d. A reduction in subsidies from the state government. ____ 54. Economies of scale occur when a. long-run average total costs rise as output increases. b. long-run average total costs fall as output increases. c. average fixed costs are falling. d. average fixed costs are constant. ____ 55. Constant returns to scale occur when a. long-run total costs are constant as output increases. ____ 56. ____ 57. ____ 58. ____ 59. ____ 60. ____ 61. ____ 62. b. long-run average total costs are constant as output increases. c. the firm's long-run average cost curve is falling as output increases. d. the firm's long-run average cost curve is rising as output increases. Economies of scale arise when a. an economy is self-sufficient in production. b. individuals in a society are self-sufficient. c. fixed costs are large relative to variable costs. d. workers are able to specialize in a particular task. The fundamental reason that marginal cost eventually rises as output increases is because of a. economies of scale. b. diseconomies of scale. c. diminishing marginal product. d. rising average fixed cost. Which of the following statements is false? a. In the long run, there are no fixed costs. b. Marginal cost is independent of fixed costs. c. Economies of scale is a short-run concept. d. Diminishing marginal product explains increasing marginal cost. In the long run, when marginal cost is above average total cost, the average total cost curve exhibits a. economies of scale. b. diseconomies of scale. c. constant returns to scale. d. efficient scale. When comparing short-run average total cost with long-run average total cost at a given level of output, a. short-run average total cost is typically above long-run average total cost. b. short-run average total cost is typically the same as long-run average total cost. c. short-run average total cost is typically below long-run average total cost. d. the relationship between short-run and long-run average total cost follows no clear pattern. The total cost to the firm of producing zero units of output is a. zero in both the short run and the long run. b. its fixed cost in the short run and zero in the long run. c. its fixed cost in both the short run and the long run. d. its variable cost in both the short run and the long run. Suppose a firm in a competitive market produces and sells 8 units of output and has a marginal revenue of $8.00. What would be the firm's total revenue if it instead produced and sold 4 units of output? a. $4.00 b. $8.00 c. $32.00 d. $64.00 Scenario 14-1 As part of an estate settlement Mary received $1 million. She decided to use the money to purchase a small business in Anywhere, USA. If Mary would have invested the $1 million in a risk-free bond fund she could have made $100,000 each year. She also quit her job with Lucky.Com Inc. to devote all of her time to her new business; her salary at Lucky.Com Inc. was $75,000 per year. ____ 63. Refer to Scenario 14-1. At the end of the first year of operating her new business, Mary's accountant reported an accounting profit of $150,000. What was Mary's economic profit? a. $25,000 loss b. $50,000 loss c. $25,000 profit d. $150,000 profit ____ 64. Refer to Scenario 14-1. What are Mary's opportunity costs of operating her new business? a. $25,000 b. $75,000 c. $100,000 d. $175,000 ____ 65. If a competitive firm is (i) selling 1,000 units of its product at a price of $9 per unit and (ii) earning a positive profit, then a. its total cost is less than $9,000. b. its marginal revenue is less than $9. c. its average revenue is greater than $9. d. the firm cannot be a competitive firm since competitive firms can only earn zero profit. Table 14-2 The following table presents cost and revenue information for Soper's Port Vineyard. COSTS Quantity Produced Total Cost Marginal Cost Quantity Demanded REVENUES Price Total Revenue Marginal Revenue 0 1 2 3 4 5 6 7 8 100 150 202 257 317 385 465 562 682 -- 0 1 2 3 4 5 6 7 8 120 120 120 120 120 120 120 120 120 -- ____ 66. Refer to Table 14-2. Consumers are willing to pay $120 per unit of port wine. What is the total revenue from selling 7 units? a. $120 b. $700 c. $820 d. $840 ____ 67. Free entry means that a. there are no costs of entering into an industry. b. no legal barriers prevent a firm from entering an industry. c. a firm's marginal cost is zero. d. a firm has no fixed costs in the short run. Table 14-3 Use the information for a competitive firm in the table below to answer the following questions. Quantity 0 1 2 3 4 5 6 7 8 9 Total Revenue $0 9 18 27 36 45 54 63 72 81 Total Cost $10 14 19 25 32 40 49 59 70 82 ____ 68. Refer to Table 14-3. If the firm finds that its marginal cost is $11, it should a. increase production to maximize profit. b. increase the price of the product to maximize profit. c. advertise to attract additional buyers to maximize profit. d. reduce production to increase profit. ____ 69. Refer to Table 14-3. If the firm finds that its marginal cost is $5, it should a. reduce fixed costs by lowering production. b. increase production to maximize profit. c. decrease production to maximize profit. d. maintain its current level of production to maximize profit. Figure 14-1 The graph below depicts the cost structure for a firm in a competitive market. ____ 70. Refer to Figure 14-1. When price rises from P3 to P4, the firm finds that a. fixed costs are lower at a production level of Q4. b. it can earn a positive profit by increasing production to Q4. c. profit is still maximized at a production level of Q3. d. average revenue exceeds marginal revenue at a production level of Q4. ____ 71. When total revenue is less than variable costs, a firm in a competitive market will a. continue to operate as long as average revenue exceeds marginal cost. b. continue to operate as long as average revenue exceeds average fixed cost. ____ 72. ____ 73. ____ 74. ____ 75. c. shut down. d. raise its price. When price is below average variable cost, a firm in a competitive market will a. shut down and incur fixed costs. b. shut down and incur both variable and fixed costs. c. continue to operate as long as average revenue exceeds marginal cost. d. continue to operate as long as average revenue exceeds average fixed cost. A profit-maximizing firm will shut down in the short run when a. price is less than average variable cost. b. price is less than average total cost. c. average revenue is greater marginal cost. d. average revenue is greater than average fixed cost. When profit-maximizing firms in competitive markets are earning profits, a. market demand must exceed market supply at the market equilibrium price. b. market supply must exceed market demand at the market equilibrium price. c. new firms will enter the market. d. the most inefficient firms will be encouraged to leave the market. Profit-maximizing firms enter a competitive market when, for existing firms in that market, a. total revenue exceeds fixed costs. b. total revenue exceeds total variable costs. c. average total cost exceeds average revenue. d. price exceeds average total cost. Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market. ____ 76. Refer to Figure 14-4. When market price is P5, a profit-maximizing firm's profits can be represented by the area a. P5 Q3. b. (P5 - P3) Q2. c. (P5 - P4) Q3. d. When market price is P5 there are no profits. ____ 77. Refer to Figure 14-4. Firms would be encouraged to enter this market for all prices that exceed a. P1. b. P2. ____ 78. ____ 79. ____ 80. ____ 81. ____ 82. ____ 83. ____ 84. ____ 85. c. P3. d. None of the above is correct. When a profit-maximizing competitive firm finds itself minimizing losses because it is unable to earn a positive profit, this task is accomplished by producing the quantity at which price is equal to a. sunk cost. b. average fixed cost. c. average variable cost. d. marginal cost. For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the a. average total cost curve. b. average variable cost curve. c. marginal cost curve. d. marginal revenue curve. At the profit-maximizing level of output, a. marginal revenue equals average total cost. b. marginal revenue equals average variable cost. c. marginal revenue equals marginal cost. d. average revenue equals average total cost. The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which a. total revenue is equal to variable cost. b. total revenue is equal to fixed cost. c. total revenue is equal to total cost. d. profit is maximized. Which of these curves is the competitive firm's short-run supply curve? a. The average variable cost curve above marginal cost. b. The average total cost curve above marginal cost. c. The marginal cost curve above average variable cost. d. The average fixed cost curve. A competitive firm has been selling its output for $10 per unit and has been maximizing its profit. Then, the price rises to $14 and the firm makes whatever adjustments are necessary to maximize its profit at the nowhigher price. Once the firm has adjusted, which of the following statements is correct? a. The firm's marginal revenue is lower than it was previously. b. The firm's marginal cost is lower than it was previously. c. The firm's quantity of output is higher than it was previously. d. All of the above are correct. A firm's marginal cost has a minimum value of $2, its average variable cost has a minimum value of $4, and its average total cost has a minimum value of $5. Then the firm will shut down if the price of its product falls below a. $2. b. $4. c. $5. d. There is not enough information given to answer the question. The complete description of a competitive firm's supply curve is as follows: The competitive firm's short-run supply curve is that portion of the a. average variable cost curve that lies above marginal cost. b. average total cost curve that lies above marginal cost. c. marginal cost curve that lies above average variable cost. d. marginal cost curve that lies above average total cost. Table 14-4 The following table presents cost and revenue information for John's Vineyard. COSTS Quantity Produced Total Cost Marginal Cost Quantity Demanded REVENUES Price Total Revenue Marginal Revenue 0 1 2 3 4 5 6 7 8 0 50 102 157 217 285 365 462 582 -- 0 1 2 3 4 5 6 7 8 80 80 80 80 80 80 80 80 80 -- ____ 86. Refer to Table 14-4. What is the total revenue from selling 7 units? a. $80 b. $210 c. $540 d. $560 ____ 87. Raiman's Shoe Repair also produces custom-made shoes. When Mr. Raiman produces 12 pairs a week, the marginal cost of the twelfth pair is $84, and the MR of that unit is $70. What would you advise Mr. Raiman to do? a. Shut down the business. b. Produce more custom-made shoes. c. Decrease the price. d. Produce fewer custom-made shoes. ____ 88. Joe's Garage operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10. In this situation, a. Joe's Garage is earning a positive economic profit. b. Joe's Garage should shut down immediately. c. Joe's is losing money in the short run, but should continue to operate. d. the market price will rise in the short run to increase profits. ____ 89. A corporation has been steadily losing money on one of its product lines. The factory used to produce that product cost $20 million to build 10 years ago. The firm is now considering an offer to buy that factory for $15 million. Which of the following statements about the decision to sell or not to sell is correct? a. The firm should turn down the purchase offer because the factory cost more than $15 million to build. b. The $20 million spent on the factory is a sunk cost, and that should not affect the decision. c. The $20 million spent on the factory is an implicit cost, which should be included in the decision. d. The firm should sell the factory only if it can reduce its costs elsewhere by $5 million. ____ 90. In a market with 1,000 identical firms, the short-run market supply is the a. marginal cost curve (above average variable cost) for a typical firm in the market. b. quantity supplied by the typical firm in the market. c. sum of the prices charged by each of the 1,000 individual firms. ____ 91. ____ 92. ____ 93. ____ 94. d. sum of the quantities supplied by each of the 1,000 individual firms. In a perfectly competitive market, the process of entry and exit will end when, for firms in the market, a. price is equal to average variable cost. b. marginal revenue is equal to average variable cost. c. economic profits are zero. d. accounting profits are zero. In a competitive market with free entry and exit, if all firms have the same cost structure, then a. all firms will operate at efficient scale in the short run. b. all firms will operate at efficient scale in the long run. c. the price of the product will differ across firms. d. the number of sellers in the market will steadily decrease over time. If all existing firms and all potential firms have the same cost curves, there are no inputs in limited quantities, and the market is characterized by free entry and exit, then the long-run a. market supply curve is equal to the sum of marginal cost. b. supply curve for the market must slope downward. c. market supply curve must slope upward. d. supply curve for the market is horizontal and equal to the minimum of long-run average cost for each firm. The exit of existing firms from a competitive market will a. increase market supply and increase market prices. b. increase market supply and decrease market prices. c. decrease market supply and increase market prices. d. decrease market supply and decrease market prices. Figure 14-7 ____ 95. Refer to Figure 14-7. Suppose a firm in a competitive market, like the one depicted in panel (a), observes market price rising from P1 to P2. Which of the following could explain this observation? a. The entry of new firms into the market. b. The exit of existing consumers from the market. c. An increase in market supply from Supply0 to Supply1. d. An increase in market demand from Demand0 to Demand1. ____ 96. When firms in a perfectly competitive market face the same costs, in the long run they must be operating a. under diseconomies of scale. ____ 97. ____ 98. ____ 99. ____ 100. b. with small, but positive, levels of profit. c. at their efficient scale. d. where price is equal to average fixed cost. A long-run supply curve is flatter than a short-run supply curve because a. firms can enter and exit a market more easily in the long run than in the short run. b. long-run supply curves are sometimes downward sloping. c. competitive firms have more control over demand in the long run. d. firms in a competitive market face identical cost structures. Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are available only in limited quantities. In this market, an increase in demand will a. increase price in the short run, but not in the long run. b. increase price in the long run, but not in the short run. c. increase price both in the short and the long run. d. not affect price in either the short or the long run. Which of the following statements is false? a. In a long-run equilibrium, marginal firms make zero economic profit. b. To maximize profit, firms should produce at a level of output where price equals average variable cost. c. The amount of gold in the world is limited. Therefore, the gold jewelry market probably has a long-run supply curve that is upward sloping. d. Long-run supply curves are typically more elastic than short-run supply curves. Tommy's Tires operates in a perfectly competitive market. If tires sell for $50 each and average total cost per tire is $40 at the profit-maximizing output level, then in the long run a. more firms will enter the market. b. some firms will exit from the market. c. the equilibrium price per tire will rise. d. average total costs will fall.

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Baylor - THEA - 2390
1/18/2008 1:05:00 PM How to be a Stage Manager Mike's theory of theatre 4 phases: Ideas & Concepts Split Phase Designer's real world Director's idea world Stage manager is only one in both worlds Techs & Dresses Adding the Audience 1-23 Pre-Show Set-
Baylor - THEA - 3371
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Baylor - PHY - 1404
1/18/2008 1:48:00 PM Physics 1404Fundamental Properties of LightWave/Particle Duality light is both a wave and a particle Photons Particles of light, zero mass, but carry energy Wavelength crest to crest, use a lambda to identify ( ) Period t
University of Sydney - HIMT - 3055
EpidemiologyLecture 2: Population Health and Disease MeasuresLearning outcomes Describe measures of diseaseoccurrence and frequency of health events Calculate measures of diseasefrequency Interpret epidemiologic informationrelated to thes
University of Texas - HDF - 313
CH.1 THE NATURE OF DEVELOPMENT Development: consists of age-related changes that are orderly, cumulative, and directional. Orderly: changes follow a logical sequence Cumulative: each phase includes all that went before it as well as something more Di
University of Sydney - HIMT - 3055
EpidemiologyLecture 3: Causation and Epidemiologic StudiesLearning Outcomes Describe the key criteria to assess ifa relationship is causal Describe the study types used inepidemiology Compare relative strengths andweaknesses of the vario
Duquesne - BIOL - 111
Jarrett, Vernon (2003, December 6). New data vs race IQ theory. Chicago Defender,p. 2. Retrieved September 24, 2007, from National Newspapers (27) database. (Document ID: 609443141).Summary: This article concerns the book The Bell Curve by Richard
Duquesne - BIOL - 113
Wrinkled and Round Peas-Determining Their Genomes Introduction: This lab is designed to help students understand what phenotype and genotype are and the difference between the two based on experiments relating to those of Mendel. Mendel believed that
Duquesne - PSYC - 103
Athletic Ability-Intelligence? Intelligence and technology are two of the most valued things a person can have today, so they seem to be related. This is mainly because many people today who are in business with technology and those with high intelle
SUNY Albany - PSY - 203
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SUNY Albany - PSY - 203
2-5-08 Improving Developmental Designs: Longitudinal-Sequential Design: This design combines the longitudinal and sequential designs It detects cohort effects by comparing same-age results for participants who were born in different years It is possi
SUNY Albany - PSY - 203
3-13-08 Mary Rothbert (1981) Three underlying components of temperament: o Emotion o Attention o Action Measuring Temperament o Behavior: Parent interviews and questionnaires Behavior ratings by medical professionals or caregivers Direct researche
Vanderbilt - BSCI - 110B
BSCI 110A/BroadieMidterm Exam #1September 16,2005Name:SI#:Honor The Vanderbilt Honor CodeRead all instructions carefully! 1. 2. Do NOT open the exam until you are told to do so. Write your name and student identification number on every pa
DePaul - CHEM - 111
Purpose The main focus of this experiment has been to determine an empirical formula based on the chemical experimentation of burning the magnesium in the presence of oxygen to create the inorganic compound magnesium oxide. Since the Law of Conservat
Vanderbilt - BSCI - 110B
NAME_BIOLOGICAL SCIENCES 110-B Spring 2007 - SECOND EXAM DR. JOHNSON'S SECTION PRINT YOUR NAME (LAST NAME FIRST) ON THE COMPUTER ANSWER SHEET AND BLACKEN THE CORRESPONDING BUBBLES. THE COMPUTER ANSWER SHEET SHOULD BE USED TO ANSWER BOTH THE MULTI
DePaul - CHEM - 111
Purpose In this experiment a copper compound was transferred back to its elemental form by using several different reactions. First, nitric acid, (HNO 3), was used to transfer the copper compound into a product of copper nitrate, Cu(NO3), a nitric sa
DePaul - CHEM - 111
Purpose Carbon dioxide is formed in the reaction between an unknown Group I or II carbonate and an acid. The main point of this experiment was to determine the unknown carbonate. The main chemical principle used to identify the unknown required the u
DePaul - CHEM - 111
Purpose This experiment required the exploration of colligative properties with the use of cyclohexane, which is a common organic solvent. The point of the experiment was to determine the freezing point of cyclohexane, the molal freezing point consta
DePaul - LGBT - 101
Friedrich NietzscheFriedrich Wilhem Nietzsche was a 19th century German philosopher, who not only challenged the infrastructure of traditional morality, literature, and Christianity through his opinions and writings, but he was a man who was gravel
DePaul - BIO - 103
Mild Cognitive ImpairmentDefinitionSubtle but measurable disorder Hard to describe because some symptoms are associated with AAMI or Alzheimer'sSelf Diagnosiso Unusual forgetting Notable decline in memory of recent events Frequent pauses during
DePaul - BIO - 103
INTRODUCTIONMany people tend to feel of drowsy throughout the day even after four cups of coffee. Some suffer from sleep-depriving disorders such as insomnia and sleep apnea. Others simply just do not have enough time to get the recommended 8 hours
Auburn - ACCT - 3110
Balance Sheet Demonstration Problem: PLEASE NOTE: IF YOU TRIED TO PREPARE A BALANCE SHEET OR IN ANYWAY CHECK WHETHER THE ACCOUNTING EQUATION BALANCED, YOU FOUND THAT IT DID NOT. SO, TO CORRECT THAT, PLEASE ADD THE FOLLOWING ACCOUNT TO THE LIST. ACCRU
Auburn - ACCT - 3110
Chapter 6 Class Problems: (sources available on request) 1. Bank Reconciliations: Prepare a bank reconciliation given the following information: Balance per books, 9/30/08, $3,185 Balance per bank statement, 9/30/08, $3,254 Checks not cleared by the
Oregon - EC - 202
Exam Review X Chapter 15 (12 questions) X Chapter 16 360-369 only (5 questions) X Chapter 17 382-390 ( 5 questions) X Chapter 5 (5 questions) (work on) Chapter 7 (6 questions) X Chapter 9 (6 questions) X Chapter 10 (4 questions) X Chapter 11 (6 quest
Oregon - EC - 202
Chapter 7: Full employment AnalysisUnderstanding Full Employment: Models that assume that wages and prices adjust freely to changes in demand and supply are called classic models. When the economy is at full employment, the only types of unemploymen
Oregon - EC - 202
Chapter Six: Unemployment and InflationExamining Unemployment - During periods of poor economic performance, such as economic recessions when real GDP declines, unemployment rises sharply and becomes a cause of public concern. - During times of goo
Oregon - EC - 202
Chapter 5 : Measurement of Production and IncomeMacroeconomics is the branch of economics that deals with the nation's economy as a whole. Macroeconomics focuses on the economic issues-unemployment, inflation, growth, trade, and the gross domestic
Oregon - EC - 201
Marginal Analysis-Chapter 7 Notes---Explicit Cost: is a cost that requires an outlay of money. i.e. "the explicit cost of the additional year of schooling includes tuition." Implicit Cost: does not involve an outlay of money instead, it is me
Oregon - EC - 201
Chapter 5: ElasticitiesPrice Elasticity of Demand: o Price elasticity of demand compares the percent change in quantity demanded to the percent change in price as we move along the demand curve. o To calculate the price elasticity of demand, we must
Oregon - EC - 201
Chapter 8 Notes: Firm Decision Marking and Long run supplyProduction Function: the relationship between the quantity of inputs a firm uses and the quantity of output it produces. o A firms production functions underlies its cost curves. Fixed Input:
Oregon - EC - 201
Externalities: Econ 201 NotesMarginal Social cost of pollution: the additional cost imposed to society as a whole by an additional unit of pollution. o Ex. Acid rain damages fisheries, crops, and forests, and each additional ton of sulfur dioxide re
Berkeley - ARCH - 130
Cost-Benefit Analysis (B/C >1) 1. Establish a basis for the measurement of costs and benefits 2. Determine the life-span of the project 3. Choose an interest rate 4. espress costs and benefits in "Equivalent Terms"Two major critiques of CBA 1. Inte
Berkeley - ARCH - 130
Arch 130 March 4, 2008 Technical rationality applications Technical rationality in urban planning Radiant City, c 1930 personal, fixed, totalitarian, Robert Moses, Brasilia Competition rationality, logical became "Brazilinized", Cross Bronx Express
Vanderbilt - BSCI - 110A
BSCI 110A/BroadieMidterm Exam #2March 1, 2004Name:SI#:Read all instructions carefully!1. 2.Do NOT open the exam until you are told to do so. Write your name and student identification number on every page in the space provided. Check th
Berkeley - ARCH - 130
Postmodernism Intro: shift in mainstream architecture Harvey try to understand broad artistic production + architectural production that changes the structure of the economy, productional framework Take on Spectacle Urban context in reference with h
Vanderbilt - BSCI - 110A
Berkeley - ARCH - 130
-subjective time (meaning, limited permanent solutions, one's reasoning lack of prediction scope disconnect in design process in the knowledge required and the knowledge claim to be no intended results and unpredictable consequences how to design
Washington - BIOC - 440
First midterm - Biochemistry 442April 18, 2007 Name: _ Student #:_ -5 points if your name is missing or not legible! Be specific in your answers! They do not need to be long, but be sure to clearly identify the important molecules when asked. 1) 15
George Mason - COMM - 250
Chapter 1: Introduction to the Research CultureI. Introduction A. We live in an "information society" with a wealth of information at our fingertips. B. Information is no longer a luxury; it is a necessity on which we depend for survival. 1. The eco
George Mason - COMM - 250
Chapter 2: Asking Questions About Communication I. Introduction A. Research begins with curiosity. 1. Researchers notice something about communication and wish to learn more about it. B. Researchers move from that sense of curiosity to formulating a
George Mason - COMM - 250
Chapter 3: Finding, Reading, and Using ResearchI. Introduction A. Doing good research requires being able to get the information we need, when we need it, and being able to understand and use it. 1. Most readers of this textbook are probably already
George Mason - COMM - 250
Chapter 4: Observing and Measuring Communication VariablesI. Introduction A. If you meet an old friend after a long separation and ask, "how ya doing?" youre likely to get the bland and disappointing answer, "Fine." 1. Vague questions most often yie
George Mason - COMM - 250
Chapter 7: Experimental Research I. Introduction A. The attribution of causation pervades everyday, common-sense explanations of behavior. B. Many researchers are interested in finding the cause(s) of events and behavior. 1. Just as criminal detectiv
George Mason - ANTH - 114
1/24 THURSThere are 4 types of anthropology- culture, archaeology, physical/biological, linguistic1. Cultural: describes, analyzes, interprets, and explains social and cultural similarities and differences Ethnography: written account of a cultur
George Mason - COMM - 100
Pretest chapter 21.One way to adjust your communication is toA. recognize that other cultures may have different customs and rules.B.utilize electronic communication as much as possible.C. speak loudly and maintain eye contact.D. intera
Washington - BIOC - 440
First midterm - Biochemistry 442 KEYApril 18, 2007 Name: _ Student #:_ -5 points if your name is missing or not legible! Be specific in your answers! They do not need to be long, but be sure to clearly identify the important molecules when asked. 1)
George Mason - COMM - 100
Pretest Chapter 31.The image of who you are is called yourA. self-concept.B.self-awareness.C. self-esteem.D. self-confidence.2.The value you place on yourself is calledA. self-awareness.B.self-confidence.C. self-esteem.D.
George Mason - COMM - 100
1.Which of the following is false about gender differences in listening?A.Men are more likely than women to play up their expertise when responding.B.Men tend to give longer responses.C.Women use listening to establish closer relationsh
George Mason - COMM - 100
Pretest Chapter 8COURSES > COMM101 > TAKE ASSESSMENT CHAPTER 8 PRETESTTake Assessment Chapter 8 PreTestName: Instructions:Chapter 8 PreTestMultiple Attempts: This Test allows multiple attempts. Force Completion: This Test can be saved and r
George Mason - COMM - 100
1.Which of the following is not an effective method used to learn more about a friend or a partner?A.Increasing the frequency and intimacy of touchingB.Testing your assumptions about his or her personality to see if they're trueC.Physic
George Mason - COMM - 100
1.What are the four patterns of family communication identified in the book?A. Equality, balanced-split, unbalanced split, and monopoly patternsB. Equity, balanced split, unbalanced split, and domineering patternsC. Equality, child-centered,
George Mason - COMM - 100
Take Assessment Chapter 4 ExamName: Instructions:Chapter 4 Exam Chapter 4Multiple Attempts: Not allowed. This Test can only be taken once. Force Completion: This Test can be saved and resumed later.Question 1 Multiple Choice1 pointsAnna,
George Mason - COMM - 100
Chapter 5 ExamCOURSES > COMM101 > TAKE ASSESSMENT CHAPTER 5 EXAMTake Assessment Chapter 5 ExamName: Instructions:Chapter 5 Exam Chapter 5Multiple Attempts: Not allowed. This Test can only be taken once. Force Completion: This Test can be sa
George Mason - COMM - 100
COURSES > COMM101 > TAKE ASSESSMENT CHAPTER 12 EXAMTake Assessment Chapter 12 ExamName: Instructions:Chapter 12 Exam Chapter 12Multiple Attempts: Not allowed. This Test can only be taken once. Force Completion: This Test can be saved and resu
George Mason - COMM - 100
Post Test Chapter 11.According to current research, nearly 90 percent of recruiters ranked _ as the top attribute in making hiring decisions.A. positive feedback from references.B. an impressive college transcript.C. good communication and
George Mason - COMM - 100
Post test Chapter 31.Selective disclosers are likely toA. disclose all of their problems.B. disclose some information, while keeping some things hidden.C. refrain from disclosing any personal information.D. share confidential information.
George Mason - COMM - 100
Post Test Chapter 41.If you decide that a person's behavior is caused by situations beyond his or her control, you are likely toA. see this person as helpless.B.view this person positively.C. view this person negatively.D. avoid this pe
George Mason - COMM - 100
Post Test Chapter 8Take Assessment Chapter 8 PostTestName: Instructions:Chapter 8 PostTestMultiple Attempts: This Test allows multiple attempts. Force Completion: This Test can be saved and resumed later.Question 1 Multiple Choice Why do or
George Mason - COMM - 100
1.Couples with a greater commitment toward each are likely to experienceA.arguments about minor greivances.B.high levels of jealousy.C.lower supportiveness towards each other.D.equity.2.The book mentions _ as a sign that a relat
Washington - BIOC - 440
Second midterm - Biochemistry 442May 15, 2007 Name: _ Student #:_ -5 points if your name is missing or not legible! Be specific in your answers! They do not need to be long, but be sure to clearly identify the important molecules when asked. 1) 21 p
Washington - BIOC - 440
Biochemistry 442, Spring 2007: Week 1 Quiz Questions1. A) Protein A is rich in Ser. As we know, 6 codons can be translated to be Ser, which are AGC, AGU, UCA, UCC, UCG and UCU. Unfortunately, all 6 codons exist in the mRNA encoding protein A. Obviou