ECON_203_Quiz3 - Principles of Economics II (ECON 203)...

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Principles of Economics II (ECON 203) INSTRUCTIONS (PLEASE READ): Record your answers for all question in the format provided at the back of the quiz. All questions are of equal value. 1 . The Autumnus Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question(s). Output TVC 1 36 2 57 3 73 4 94 5 120 Refer to the above information. The marginal cost of the fourth unit of output is: A) $65. B) $21. C) $16. D) $26. 2 . If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then: A) it is encountering diseconomies of scale. B) it is encountering economies of scale. C) it is encountering constant returns to scale. D) the marginal products of all inputs are falling. 1
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3 . To maximize utility a consumer should allocate money income so that the: A) elasticity of demand on all products purchased is the same. B) marginal utility obtained from the last dollar spent on each product is the same. C) total utility derived from each product consumed is the same. D) marginal utility of the last unit of each product consumed is the same.
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This note was uploaded on 08/10/2010 for the course ASC 102 taught by Professor Johnh during the Spring '10 term at 카이스트, 한국과학기술원.

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ECON_203_Quiz3 - Principles of Economics II (ECON 203)...

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