C08 Intro Micro Final vA

C08 Intro Micro Final vA - Final: ANSWER SHEET Intro Micro...

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Final: ANSWER SHEET Intro Micro (ECON 1110) Version A Name __________________ Date: ____________ In each question there is only one correct answer. Select the answer you believe to be most correct and record it in the ANSWER SHEET.
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Name: ________________________ Date: __________ ID: A 1 ECON 1110 Final Multiple Choice Identify the letter of the choice that BEST completes the statement or answers the question. ____ 1. Production function is Q = 3KL . K is capital and L denotes labor. The price of capital is $2/machine-hour, the price of labor (wage) is $24/person-hour, and capital is fixed at 4 machine-hour/hour in the short run. The average fixed cost is a. 2 b. 8/Q c. 8 + 2Q d. cannot be determined ____ 2. The average fixed cost curve a. always declines with increased levels of output. b. always rises with increased levels of output. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost. Refer to the following information to answer the following questions. Scenario 13-5 A certain firm produces and sells staplers. Last year, it produced 5,000 staplers and sold each stapler for $8. In producing the 5,000 staplers, it incurred variable costs of $30,000 and a total cost of $45,000. ____ 3. Refer to Scenario 13-5. The firm's economic profit for the year was a. $-35,000. b. $-5,000 c. $10,000. d. $40,000. Refer to the figures below to answer the following questions. Figure 13-6 ____ 4. Refer to Figure 13-6. Which of the figures represents the production function for a firm? a. Figure 1 b. Figure 2 c. Figure 3 d. Figure 4
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Name: ________________________ ID: A 2 Use the following information to answer the following questions. Table 13-1 Measures of Cost for ABC Inc. Widget Factory Quantity of Widgets Variable Costs Total Costs Fixed Costs 0 $10 1$ 1 2 $ 3 $13 3 $ 6 $16 4 $10 5 $25 6 $21 $10 ____ 5. Refer to Table 13-1. The average variable cost of producing four widgets is a. $2.00 b. $2.50 c. $3.33 d. $5.00 Use the following information to answer the following questions. Adrian's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail order catalogue business. She rents a small room for $150 a week in the downtown business district that serves as her factory. She can hire workers for $275 a week. Table 13-2 Number of Workers Chocolates Produced per Week Marginal Product of Labor Cost of Factory Cost of Workers Total Cost of Inputs 0 0 1 330 150 275 425 2 630 3 150 825 975 4 890 5 950 60 1,375 6 10 1,800 ____ 6. Refer to Table 13-2. What is the total cost associated with making 890 boxes of premium chocolates per week?
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This note was uploaded on 01/20/2012 for the course ECON 1100 taught by Professor Smith during the Spring '11 term at WPI.

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C08 Intro Micro Final vA - Final: ANSWER SHEET Intro Micro...

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