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unit1practiceexam

unit1practiceexam - ECO 3401 Unit 1 Practice Exam SHORT...

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ECO 3401 Unit 1 Practice Exam SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. Write a cost function for the problem. Assume that the relationship is linear. 1) A cable TV company charges \$25 for the basic service plus \$5 for each movie channel. Let C(x) be the total cost in dollars of subscribing to cable TV, using x movie channels. 2) Marginal cost, \$80; 90 items cost \$8000 to produce Solve the problem. 3) Let the demand and supply functions be represented by D(p) and S(p), where p is the price in dollars. Find the equilibrium price and equilibrium quantity for the given functions. D(p) = 210,820 - 230p S(p) = 1040p 4) A shoe company will make a new type of shoe. The fixed cost for the production will be \$24,000. The variable cost will be \$31 per pair of shoes. The shoes will sell for \$106 for each pair. What is the profit if 600 pairs are sold? 5) Regrind, Inc. regrinds used typewriter platens. The cost per platen is \$2.90. The fixed cost to run the grinding machine is \$480 per day. If the company sells the reground platens for \$7.90, how many must be reground daily to break even?

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