Quiz 2

# Quiz 2 - s. (d) 92 shirt s. The graph above shows the...

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Quiz 2 The short run is a period of production

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(a) of 1 mon th or less. (b) that' s too shor t for the firm to chan ge its outp ut. (c) in whic h som e input s can't be varie d. (d) of 1 year or less.
A plant producing T-shirts finds that output will vary with the number of workers employed per week in the following way: Number of workers Output employed per week (T-shirts per week) 1 14 2 36 3 66 4 92 5 110 6 120 7 125 8 125 The point of diminishing returns is reached just after

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(a) 4 work ers are empl oyed . (b) 3 work ers are empl oyed . (c) 5 work ers are empl oyed . (d) 2 work ers are empl oyed . (e) 1 work er is empl oyed .
A plant producing T-shirts finds that output will vary with the number of workers employed per week in the following way: Number of workers Output employed per week (T-shirts per week) 1 14 2 36 3 66 4 92 5 110 6 120 7 125 8 125 The maximum possible weekly average product of labor in the plant is (a) 23 shirt s. (b) 18 shirt s. (c) 33 shirt

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Unformatted text preview: s. (d) 92 shirt s. The graph above shows the average and marginal cost curves for the Banner Textile Company. The company produces corduroy fabric, which it sells in a perfectly competitive market. The current market equilibrium price for corduroy is \$50 a yard. Assuming the firm maximizes profit, (a) it will incur econ omic loss es in the shor t run. (b) it will shut dow n imm ediat ely. (c) it will earn zero econ omic profi t in the shor t run. (d) it will earn econ omic profi t in the shor t run. (e) it will The graph above shows the cost curves in the long run prevailing for a firm selling in a perfectly competitive market. When the industry is in long-run competitive equilibrium, (a) the mar ginal cost of prod uctio n will be \$8. (b) the price of the prod uct will be \$6. (c) the firm will earn \$33 0 of econ omic profi t per day. (d) the firm will prod uce 100 units of outp ut per day...
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## This note was uploaded on 03/20/2008 for the course EC 205 taught by Professor Hymen during the Spring '08 term at N.C. State.

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Quiz 2 - s. (d) 92 shirt s. The graph above shows the...

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