econ 211 test 3 answers

econ 211 test 3 answers - Econ 211 Patrick McLaughlin Test...

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Econ 211 Patrick McLaughlin Test 3 : Choose the correct answer to each question and fill in the corresponding bubble on your answer sheet. There is only one answer to each question. There are 30 questions total; you have until the end of the period to finish. Good luck. 1) In the above figure, the average variable cost curve is curve A) A . B) B . C) C . D) D . E) not shown. 2) In the above figure, the marginal cost curve is curve A) A . B) B . C) C . D) D . E) not shown. 3) Total cost is the sum of fixed costs and A) implicit costs. B) explicit costs. C) accounting costs. D) variable costs. E) marginal costs 4) When a competitive firm (i.e. a firm in perfect competition) produces the profit-maximizing output and it is at its shutdown point, the firm's ________. A) marginal revenue equals its average fixed cost B) total revenue is less than its total variable cost C) total revenue equals its total variable cost D) marginal cost is less than its average variable cost E) marginal revenue is less than the price of the good.
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5) In the figure above, a single-price unregulated monopoly will set price A) a . B) b . C) c . D) d . E) Not enough information to determine what price will be. 6) In perfect competition, at all levels of output the market price is the same as the firm's ________. A) average variable cost B) normal profit C) fixed cost D) marginal revenue E) marginal cost Cost schedule Labor (workers) Output (units per day) Total variable cost (dollars) Total cost (dollars) 0 0 0 30 1 3 20 50 2 8 40 70 3 12 60 90 4 14 80 110 5 15 100 130 7) In the above table, the total fixed cost at 3 units of output is A) $0. B) $90. C) $60. D) $30 . E) $70.
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8) A period of time in which no resources used by a firm are fixed is called A) the market period. B) the intermediate run. C) the short run. D) the long run. E) the chicken run 9) Suppose demand for a product produced in a perfectly competitive market permanently increases. In the long run, holding production costs constant, the price A) does not change because entry increases the supply of the product. B) does not change because price cannot exceed average total cost in perfect competition. C) rises and each firm produces less output.
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This note was uploaded on 04/24/2008 for the course ECON 211 taught by Professor Johnson during the Spring '07 term at Clemson.

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econ 211 test 3 answers - Econ 211 Patrick McLaughlin Test...

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