Econ qui2

Econ qui2 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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

View Full Document Right Arrow Icon
Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7 - 4 1) Refer to Table 7 - 4. The average total cost for 250 units of output is approximately 1) A) 33 cents. B) 40 cents. C) 63 cents. D) 80 cents. E) $1.00. 2) If Michelle used $1000 from her savings account, which was paying 6 percent interest annually, to invest in her brother's new sporting - goods store, the opportunity cost of her investment on an annual basis would be 2) A) the dividend paid to her by her brother. B) $1000. C) her share of the store's profits. D) $1060. E) $60. The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. Labour per unit of time Total Output 0 0 1 25 2 75 3 175 4 250 5 305 TABLE 7 - 4 3) Refer to Table 7 - 4. The total cost of producing 175 units of output is 3) A) $75. B) $100. C) $150. D) $175. E) $350. 1
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 11/23/2010 for the course ECON 208 taught by Professor Dickenson during the Fall '07 term at McGill.

Page1 / 6

Econ qui2 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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