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Econ 1 Practice Final 3 Multiple Choice

# Econ 1 Practice Final 3 Multiple Choice - MULTIPLECHOICE. 1...

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A company could produce 99 units of a good for \$316 or produce 100 units of the same good for \$320. The marginal cost of the 100th unit A) is \$3.20. B) is \$320. C) is \$4.00 D) cannot be calculated with this information. 2) In the above figure when the firm has reached its long - run equilibrium position, it will produce output equal to the amount 3) If a country trades with the rest of the world, its consumption possibilities frontier 4) On a diagram showing indifference curves, the marginal rate of substitution is represented by the magnitude of 5) If the marginal benefit of the fifth slice of pizza is greater than the marginal cost of the fifth slice of pizza then the output level is A) efficient and less pizza should be produced. B) inefficient and more pizza should be produced. C) inefficient and less pizza should be produced. D) efficient and more pizza should be produced. A 1

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6) New reports indicate that eating turnips helps people remain healthy. The news shifts the demand curve for turnips rightward. In response, new farms enter the turnip industry. During the period in which the new farms are entering, the price of a turnip ________ and the profit of each existing firm ________. 7) In a perfectly competitive industry, a permanent decrease in demand initially brings a lower price, economic 8) Producers ʹ total revenue will increase if
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