QUIZ 4_answers - QUIZ 4 ANSWERS Recitation for Economics...

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QUIZ 4 – ANSWERS Recitation for Economics 2010-400 – Principles of Microeconomics Fall 2007 Name:____________________________ Recitation day and time: ___________ Directions : 1. Choose the best available alternative. 2. Please, write the answers on the answer sheet! Chapters covered in this assignment: Ch. 8: Supply curve, inputs and costs Ch. 9: Perfect competition and the supply curve Ch. 10: Rational consumer Ch. 11: Consumer preferences and consumer choice Ch. 12: Factor markets and the distribution of income Ch. 14: Monopoly Ch. 15: Oligopoly 1. The marginal product of labor is equal to the: a. increase in labor necessary to generate a one-unit increase in output. b. incremental cost associated with a one-unit increase in labor. c. incremental profit associated with a one-unit increase in labor. d. increase in output obtained from a one-unit increase in labor. 2. If a firm currently was producing at point C on the ATC2 in the accompanying figure, but anticipates increasing output to 225,000 units in the long run, the firm will build a ______ plant and experience ______. a. smaller; economies of scale b. smaller; diseconomies of scale c. larger; economies of scale d. larger; diseconomies of scale 3. The table below describes Bart's perfectly competitive ice-cream-producing firm. If the market price is $67.50, how many units of output will this profit- maximizing firm produce? Output Total Cost 0 $ 10 1 $ 60 2 $ 80 1
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3 $ 110 4 $ 170 5 $ 245
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