{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

102-SP-08-Exam-3-key-full

# 102-SP-08-Exam-3-key-full - ECON 102 Exam-2 ECON 102...

This preview shows pages 1–3. Sign up to view the full content.

ECON 102 FORM A Exam-2 1 ECON 102 Name:_________________ Professor Jose J. Vazquez Section:_______ TA ______ Multiple Choice : in each question there is only one correct answer. Select the answer you believe to be MOST correct (2 pts each). USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 1- 8. Say the production function for your firm was given table 1 below. The cost of your labor is \$100 per employee, while the cost of your capital is \$2,000 (for the time being, assume capital is a fixed input). Finally, assume that the firm operates in a perfectly competitive market and sells each unit of output for \$4.00 Labor (# of employees) Output Total Costs Average Variable Costs Average Fixed Costs Average Total Costs Marginal Costs Total Revenue Total Profits 0 0 1 100 2 250 3 375 4 400 5 420 6 430 1. The marginal product of the 4 th employee is equal to: a. 100 b. 150 c. 85 d. 25 e. None of the above. 2. The marginal product of labor begins to decrease with the __________ employee. 3. What are the average total costs of production when the firm produces 400 units of output?

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

View Full Document
ECON 102 FORM A Exam-2 2 4. When the firms produces 375 units of output the marginal cost of the last unit produced is equal to: 5. How many units of output should this firm produce in order to maximize profits? a. 0 b. 250 c. 375 d. 400 e. None of the above. 6. The correct short-run decision for the owner of this firm will be to: 7. The correct long-run decision for the owner of this firm will be to: 8. We know that in the long-run the market price (of \$4.00) for this industry will: 9. Micah’s Coffee Shop is a small coffee shop. If Micah’s produces 4,000 cups of coffee in the first hour of business and incurs a total cost of \$10,000, his average total costs are: a. \$2.50 b. \$5.00. c. \$6.00 d. \$8.00 e. None of the above
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern