midterm3Fall08-solved

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

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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

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d. Ms Lassen for a
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## This note was uploaded on 04/27/2009 for the course ECON 142 taught by Professor Dil during the Spring '08 term at Kansas.

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

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