my answers to econ mid2

Last year it sold 2 million chips at a price of 10

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Unformatted text preview: Last year it sold 2 million chips at a price of $10 per chip. For last year, the firm's a. accounting profit amounted to $20 million. b. economic profit amounted to $20 million. c. total revenue amounted to $20 million. d. explicit costs amounted to $20 million. 14. Economic profit is equal to a. total revenue minus the explicit cost of producing goods and services. b. total revenue minus the opportunity cost of producing goods and services. c. total revenue minus the accounting cost of producing goods and services. d. average revenue minus the average cost of producing the last unit of a good or service. 15. Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus the explicit cost of producing goods and services. c. total revenue minus the opportunity cost of producing goods and services. d. average revenue minus the average cost of producing the last unit of a good or service. 16. Economic profit a. will never exceed accounting profit. b. is most often equal to accounting profit. c. is always at least as large as accounting profit. d. is a less complete measure of profitability than accounting profit. Table 13-2 Number of Workers 0 1 2 3 4 Output 0 90 170 230 240 Fixed Cost $50 $50 $50 $50 $50 Variable Cost $0 $20 $40 $60 $80 Total Cost $50 $70 $90 $110 $130 17. Refer to Table 13-2. The marginal product of the second worker is a. 90 units. b. 85 units. c. 80 units. d. 20 units. 18. Refer to Table 13-2. The marginal product of the third worker is a. 230 units. b. 100 units. c. 77 units. d. 60 units. 19. Refer to Table 13-2. The marginal product of the fourth worker is a. 10 units. b. 60 units. c. 230 units. d. 240 units. 20. Refer to Table 13-2. At which number of workers does diminishing marginal product begin? a. 1 b. 2 c. 3 d. 4 21. Refer to Table 13-2. If the firm can sell its output for $1 per unit, what is the profit-maximizing level of output? a. b. c. d. 240 units 230 units 190 units 170 units Table 13-3 Number of Workers 0 1 2 3 4 5 Total Output 0 Marginal Product -30 40 50 40 30 22. Refer to Table 13-3. What is total output when 1 worker is hired? a. 30 b. 40 c. 120 d. 160 23. Refer to Table 13-3. What is total output when 2 workers are hired? a. 30 b. 40 c. 70 d. 120 24. Refer to Table 13-3. What is total output when 3 workers are hired? a. 30 b. 40 c. 70 d. 120 25. Refer to Table 13-3. What is total output when 4 workers are hired? a. 40 b. 70 c. 120 d. 160 26. Refer to Table 13-3. What is total output when 5 workers are hired? a. 70 b. 120 c. 160 d. 190 Chapter 14 1. A firm has market power if it can a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d. hire as many workers as it needs at the prevailing wage rate. 2. The analysis of competitive firms sheds light on the decisions that lie behind the a. demand curve. b. supply curve. c. way firms make pricing decisions in the not-for-profit sector of the economy. d. way financial markets set interest rates. 3. For any compet...
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This note was uploaded on 01/27/2014 for the course ECON 1010 taught by Professor Jonathanpritchett during the Fall '12 term at Tulane.

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