midterm3Fall08-solved

midterm3Fall08-solved - Econ 142 Spring 2008 Professor...

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

View Full Document Right Arrow Icon
Econ 142 Spring 2008 Professor Gautam Bhattacharya Third Midterm Exam Your Name Your KUID Your TA’s name (circle the right one) Danai, Emily, Mike, Sanjibani Time your disc section meets (eg. 1:30 pm Wed) Multiple-choice – 3 points each 1. If, in the short run, the price of a firm’s product is below its Average variable cost curve, then it should a. produce an output where P = MC b. shut down ****** c. shut down only if loss is greater than its fixed costs d. none of the above. 2. If prices of all inputs go up, then a competitive firm’s a. Average total cost curve will shift upwards. b. Marginal cost curve will shift upwards. c. Average variable cost curve will shift upwards. d. Total Cost curve will shift upwards. e. All of the above. ****** 3. A dairy farm can employ Ms. Lay Zee at $6 per hour. She can milk three cows per hour. The farm can also employ Ms. Quicka Lassen at $15 per hour. She can milk five cows per hour. In order to minimize the cost of milking cows, the firm should employ a. both Ms. Zee and Ms. Lassen equally b. Only Ms. Zee ****** c. Only Ms. Lassen
Background image of page 1

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

View Full DocumentRight Arrow Icon
d. Ms Lassen for a
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

midterm3Fall08-solved - Econ 142 Spring 2008 Professor...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online