Econ test 2

Econ test 2 - 1) A) B) C) D) E) In the table above,...

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1) In the table above, marginal cost is equal to average total cost at a quantity of: A) 1 B) 3 C) 4 D) 5 E) 8 2) Using the information in the table above, we can conclude that the marginal-cost curve intersects the average-variable-cost curve at _______ unit(s) of output and the average-total-cost curve at _______ unite(s) of output. A) 1;1 B) 2;3 C) 4;4 D) 4;5 E) 6;7 3) Refer to the table above. Following which unit of output does the law of diminishing marginal returns cause per unit costs to increase? A) 1 B) 4 C) 5 D) 7 E) The law of diminishing marginal returns does not apply. 4) In the table above, the average fixed cost of the first unit of output is ______ while the average fixed cost of producing 8 units of output is ______. A) $30;$40 B) $40;$5 C) $40;$40 D) $40;$280 E) $40;$320 5) When the price of good Y is $2 per unit, 300 units of good X are purchased per period. When the price of good Y is $4 per unit, 200 units of good X are purchased per period. What is the coefficient of the cross-price elasticity of demand for good X with respect to the change in price Y? A) 5/3 and the goods are substitutes B) -5/3 and the goods are compliments
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C) 3/5 and the goods are substitutes D) -3/5 and the goods are substitutes E) -3/5 and the goods are compliments 6) Suppose that four workers can harvest 20 bushels of corn on an acre of land per day, while five workers can harvest 25 bushels. Then: A) The marginal physical product of the fifth worker is 25 and the average physical product of five workers is 20. B) The marginal physical product of the fifth worker is 5 and the average physical product of fiver workers is 5. C) The marginal physical product of the fourth worker is 5 and the average physical product of five workers is 20. D) The marginal physical product of the fourth worker is 5 and the average physical product of 4 workers is 5. E) Marginal and average physical products cannot be determined from the information provided. 7) If the price elasticity of demand, e(d), is equal to -2, then a 20 percent increase in quantity demanded would result from a: A) 40 percent increase in price. B) 20 percent decrease in price. C) 10 percent decrease in price. D) 10 percent increase in price.
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Econ test 2 - 1) A) B) C) D) E) In the table above,...

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