Xcquiz2-0201 - 3 The MC curve cuts through the minimum of what curve a ATC b FC c AP L d MP L 4 When John hires 3 workers they produce 40 units of

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ECON 251-0201 XC Quiz #2 Thursday, October 19, 2006 1. If the MP L is 10 and the AP L is 8, hiring another worker will a. increase MP L . b. increase AP L . c. decrease AP L . d. not affect either MP L or AP L . 2. If economic profit is negative in an industry, which of the following is true? a. monetary costs are greater than revenues b. economic costs are less than revenues c. resources would have a higher value used in their best alternative use d. no other industry can generate a better return than this industry
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Unformatted text preview: 3. The MC curve cuts through the minimum of what curve? a. ATC b. FC c. AP L d. MP L 4. When John hires 3 workers, they produce 40 units of output. When John hires 4 workers, they produce 50 units of output. What is the AP L of 4 workers? a. 50 b. 40 c. 12.5 d. 10 5. The next Econ 251 exam is a. Thursday, November 23 b. Tuesday, November 7 c. Friday, October 27 d. Thursday, December 14...
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This note was uploaded on 04/27/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.

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