Quiz 2 - Quiz 2 Economics 101-300 Quiz 2 Section 301 Quiz 2...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz 2 Quiz 2 Quiz 2 Economics 101-300 Section 301 Winter 2007 INSTRUCTIONS: You have 45 minutes to complete the quiz. Please put away all papers, books, cell phones and calculators. Please make sure to fill in your name on the line below. Please read each question carefully, answer it fully, and write your answer directly on this document. If the question is multiple choice, circle the letter of the answer you believe is correct. For analytical questions, work out your answer on the paper in the space given. We can give partial credit if we see some correct work and the answer is incorrect. When you have finished, turn in the document directly to your GSI (not to a pile of quizzes, etc.). Turn in this entire document with the exception of the scratch page which you may use during the exam. Take your time, and good luck. Your name___________________________________________ 1) (2 points) The chart below shows the number of customers that Sweetwaters can serve per day with different combinations of workers and espresso machines. What can you say about Sweetwaters’ production? 20 workers 40 workers 60 workers 2 espresso machines 300 400 550 3 espresso machines 390 550 750 4 espresso machines 450 650 900 a) It exhibits increasing returns to scale b) It exhibits constant returns to scale c) It exhibits decreasing returns to scale d) There is increasing marginal product of espresso machines e) There is decreasing marginal product of labor 2) (2 points) Consider Zingerman’s, a competitive bread baking firm. Their marketing people
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/01/2008 for the course ECON 101 taught by Professor Gerson during the Winter '08 term at University of Michigan.

Page1 / 6

Quiz 2 - Quiz 2 Economics 101-300 Quiz 2 Section 301 Quiz 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

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