Midterm 2 Sample Questions

Midterm 2 Sample Questions - Sample Questions for the...

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Sample Questions for the Second Midterm Test Six questions that could have been used for the second midterm test are listed below. The answers to the questions are given at the bottom of this file. 1. The PBM Corporation recently entered the perfectly competitive yo-yo industry. It has a one-year lease for its factory that requires it to pay $5 dollars rental each day. The factory can produce up to 10 yo-yos each day. The marginal costs of the ten yo-yos that it can produce in a day are $4, $3, $3, $4, $5, $7, $10, $15, $24 and $40 respectively. Yo-yos sell for $12 each. PBM's maximum daily profit is (a) $0. (b) $20. (c) $43. (d) $79. (e) $84. 2. A profit-maximizing competitive firm has a fixed input. The firm’s entire supply curve is (a) the whole of the firm’s marginal cost curve. (b) the upward sloping portion of the firm’s marginal cost curve. (c) the firm’s marginal cost curve above the average variable cost curve. (d) the firm’s marginal cost curve above the shutdown point.
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This note was uploaded on 04/15/2008 for the course ECO 182 taught by Professor Morgan during the Spring '08 term at SUNY Buffalo.

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Midterm 2 Sample Questions - Sample Questions for the...

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