Econ 104 exam 1 review - Econ 104 exam 1 review*practice exam Extra hours open Total revenue 1 50 2 75 mb=\$25 > mc \$10 3 95 mb =\$20 >mc \$10 4 110 mb=\$15

# Econ 104 exam 1 review - Econ 104 exam 1 review*practice...

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Econ 104 exam 1 review **practice exam** Extra hours open Total revenue 1 50 2 75 ; mb=\$25 > mc \$10 3 95; mb =\$20 >mc \$10 4 110; mb=\$15 > mc \$10 5 119; mb=\$9 < mc \$10 6 125; mb=\$6 < mc \$10 2. Opening two hours instead of one leads to a marginal benefit of \$25 3. Since she is willing to stay open for 6 hours, we know she will maximize her revenues at 6 hours; any more than that and she will not be making any money. 4. Since the fourth hour is the last time MB > MC, using marginal analysis, she should only stay open for 4 more hours 19. PPF shows maximum attainable combinations of x+y goods. A movement from y to z tell us that the ppf shifted out on the plastic side, but not the food 20. An increase in unemployment would not cause a shift of the ppf but would instead move the

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