{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ 306 S10 Practice exam

# Econ 306 S10 Practice exam - 1Econ 306 Spring 2010 Charles...

This preview shows pages 1–3. Sign up to view the full content.

1Econ 306 Charles Hulten Spring 2010 PRACTICE EXAM The following group of questions all refer to the Figures 1A, 1B, and 1C below. These figures show the production and cost functions of a single firm which produces output (Q) using one input, labor (L). There is no capital and thus no fixed cost. Total cost is therefore just the cost of hiring labor. 1. If production is efficient, how much labor is needed to produce 80 units of output? a. 30 *c. 100 b. 60 d. NOTA ("None of the Above") 2. The marginal product of labor (MPL) is at a maximum at which point on the production function Figure 1A? *a. A c. C b. B d. NOTA 3. The point B in Figure 1A is equivalent to which point in Figure 1C? *b. J 4. The average cost (AC) of producing 80 units of output is how large (i.e. what is its numerical value)? 5. Marginal cost equals average cost at what level of labor input? *b. 60 6. When the price of output is \$25.00 per unit, how much output would be produced by a profit maximizing firm? a. 24 *c. 80 b. 60 d. NOTA

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
9. When the price of output is \$25.00 per unit, how much profit would a profit maximizing firm earn by operating at the optimal level of output? 10. The firm's supply curve of output is determined by which of the following curve segments? *a. the marginal cost curve above the point J b. the marginal cost curve above the point I c. the average cost curve above the point J d. NOTA 11. If the price were to fall from \$25.00 to \$10.00 per unit, how much profit would the profit maximizing firm earn? *a. \$0 c. \$600 b. \$150 d. NOTA
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 10

Econ 306 S10 Practice exam - 1Econ 306 Spring 2010 Charles...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online