Econ 251 Quiz 4 answers - Econ 251 Quiz 4 1. Peter consumes...

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Econ 251 Quiz 4 1. Peter consumes only coffee and sandwiches. Suppose both goods are normal goods for Peter. If the price of coffee rises, the substitution effect will make him to consume coffee and the income effect will make him to consume coffee. a. More; less b. More; more c. Less; less d. Less; more 2. If marginal cost exceeds average variable cost, then ___________________cost is ___________. a. Average variable; rising b. Average fixed; rising c. Average total; rising d. Total; minimized 3. When a firm experiences increasing return to scale, its __________________ cost curve slopes ______ a. short-run average total; downward b. short-run marginal cost; downward c. long-run average; downward d. long-run average; upward 4. Based on the table below, what is the marginal product of the 3 rd worker? a. 8 b. 10 c. 12 d. 15 Labor Total Product Average Product Marginal Product 0 0 1 10 10 10 2 300 150 20 3 45 150 150
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5. Suppose that a perfectly competitive firm’s average variable cost is $8 and the
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This note was uploaded on 11/28/2010 for the course PHY 222 taught by Professor Yu during the Spring '10 term at Beaufort County Community College.

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Econ 251 Quiz 4 answers - Econ 251 Quiz 4 1. Peter consumes...

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