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quiz 2 practice questions

# quiz 2 practice questions - Quiz#2 Practice Questions 1...

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Quiz #2 Practice Questions 1. Consider a firm under perfect competition. The cost function of a firm is: TC(q)= 3 + q 2 When the output is 10 a. The fixed cost is 0, the average variable cost is 10. b. The fixed cost is 3, the average variable cost is 10. c. The fixed cost is 3, the average variable cost is 100. d. The fixed cost is 0, the average variable cost is 100. 2. The above cost function means that the firms marginal cost is: MC(q)= 2q If the firm is in a perfectly competitive industry and is producing a positive amount, then for this firm: 3. If the price is \$10 this firm will produce: 4. If the price is \$10 per unit, the firm will be making:

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Suppose printers are manufactured using capital (K) and labor (L). The following table has information on the production of printers per month when capital is fixed at K=5 units. Use the table to answer the questions below. Number of Workers Number of Printers 0 0 1 50 2 120 3 170 4 200 5. Diminishing marginal productivity sets in at: a. 1 worker b. 2 workers c. 3 workers d. 4 workers 6. Which of the following is correct: 7. Which of the following is true:
8. Use the following graph to answer the questions below: Points: 2 points each for a maximum of 10. 1. Diminishing Marginal Product sets in after the firm produces ____5__ units.

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