Midterm 2 - The Colorado College Department of Economics...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 The Colorado College Department of Economics and Business Block 5: Principles of Microeconomics Block 5 Econ 151 Midterm # 2 -- Time: 2 hours and 30 minutes. Do all 4 questions Please be clear and precise with the answers. Write and sign you follow the CC Honor Code. Turn in question paper along with answer booklet. 1) (a) Distinguish between the following terms: (i) Average and Marginal cost. (ii) Economic profits and accounting profits. (2x2.5=5 points) (b) Consider the following long-run total cost for three different firms: Quantity 1 2 3 4 5 6 7 Firm A $60 $70 $80 $90 $100 $110 $120 Firm B 11 24 39 56 75 96 119 Firm C 21 34 49 66 85 106 129 Does each of these firms experience economies of scale or diseconomies of scale. Explain, showing appropriate calculations. (10 points) 2) (a) Consider the following cost information for a pizzeria: Quantity Total Cost Total Variable Costs 0 $300 $0 1 450 150 2 490 190 3 520 220 4 550 250 5 590 290 6 640 340 (i) What is the total fixed cost? (2 points)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This test prep was uploaded on 04/19/2008 for the course EC 151 taught by Professor Ghosh during the Spring '08 term at Colorado College.

Page1 / 2

Midterm 2 - The Colorado College Department of Economics...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online