PracticeExam3_B

PracticeExam3_B - Practice Exam B for Exam 3 Maymester 2009...

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Practice Exam B for Exam 3 – Maymester 2009 1. Based on the above figure, when the price of milkshakes decreases, the consumer changes consumption from point a to point c. The marginal rate of substitution from point a to point c has changed from _______ to _______. a. 8, 4 b. 1, 2 c. 2, 1 d. 4, 8 2. Based on the same figure above, when the price of milkshakes decreased, the quantity of soft drinks purchased ________, indicating that milkshakes and soft drinks are _____________. a. Decreased; complements b. Increased; complements c. Decreased; substitutes d. Increased; substitutes 3. Based on the same figure above, the income effect of the decrease in the price of milkshakes is seen as the movement from a. Point a to b b. Point b to c c. Point c to d d. Point d to a
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Below is the total product schedule of a pizza shop. Number of workers Total product, pizzas/day 0 0 1 50 2 120 3 200 4 240 5 280 6 310 7 330 8 340 4. Based on information in the table, what is the marginal product of the 5 th worker? a. 40 b. 56 c. 8 d. 7 5. Each worker is paid $60 a day and the total fixed cost is $160 a day. If the pizza shop is producing 240 pizzas a day, its daily total cost is ___. a. $220 b. $340 c. $400 d. $500 6. If each worker is paid $60 a day, the marginal cost of producing the 330 th pizza is a. $3 b. $5 c. $20 d. $47 7. If this pizza shop operates in perfect competition, and the market price of pizza is $5 per pizza, what is marginal revenue?
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a. $5 b. $10 c. $0.20 d. Cannot be determined from the information given 8. If this pizza shop operates in perfect competition, when the market price of pizza is $5 each, how many pizzas will it produce to maximize profit? a.
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PracticeExam3_B - Practice Exam B for Exam 3 Maymester 2009...

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