The lost consumer surplus of this tax is equal to the area a P 2 P 1 bc 30

# The lost consumer surplus of this tax is equal to the

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The lost consumer surplus of this tax is equal to the area: a. P 2 P 1 bc 30. Refer to the graph shown. Initially, the market is in equilibrium with price equal to $3 and q uantity equal to 100. Government imposes a tax on suppliers of$1 per unit. The effect of the tax is to: a. raise the price consumers pay from $3 to$4. Chapter 11 1. The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. a. Average fixed cost is declining. 2. Refer to the graph shown. This set of cost curves is: a. Correct 3. The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production.

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a. Average fixed cost 4. When labor is the variable input, the average product equals the: a. quantity of output divided by the number of workers. 5. When output is 20, fixed costs are $100 and variable costs are$400. When output rises to 21, fixed costs are $100 and variable costs are$450. This implies that the marginal cost of the last unit of output equals: a. $50 6. The average fixed cost curve is: a. Always downward-sloping 7. Refer to the table shown. If the output of bicycles is 4 per week, the marginal cost of producing another bicycle per week is: (TABLE) a.$140 8. Refer to the table shown. The firm would definitely not hire: (TABLE) a. 10 workers 9. Refer to the graph shown. Within which section(s) of the production function is marginal product increasing? a. A 10. Refer to the table shown. The average fixed cost of producing eight bicycles is: (TABLE) a. Less or equal to $12.50 11. A firm is producing 100 units of output at a total cost of$400. The firm's average variable cost is $3 per unit. What is the firm's total fixed cost? a. 100 12. If marginal cost is greater than average total cost, average total cost: a. Is rising 13. The U shape of the average total cost curve is because: a. Average productivity rises and then falls 14. When output is 50, fixed costs are$1,000, and variable costs are $2,000, what is the average total cost? a.$60 15. Refer to the graph shown which shows total product. At point B :
a. Marginal Product is 0 16. Refer to the graph shown, which shows total product. At point A : a. marginal product is at its maximum point. 17. Refer to the table shown. If the average product is 6, the number of workers could equal: (TABLE) a. 3 18. Short-run decisions are: a. constrained because some inputs are fixed and others are variable. 19. Refer to the table shown. A firm would be least likely to hire: a. 9 workers 20. If marginal cost equals average total cost: a. Average total cost is minimized 21. Refer to the graph shown. The line segment that represents average variable costs of producing Q* is: a. AQ* 22. The difference between economic profit and accounting profit is equal to: a. Implicit revenues minus implicit costs 23. Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include: a. Only her forgone salary of$42,000 per year 24. Which short-run cost curve continually declines as output increases?

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