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

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

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