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

This preview shows page 10 - 13 out of 20 pages.

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.
Image of page 10

Subscribe to view the full document.

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 :
Image of page 11
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?
Image of page 12

Subscribe to view the full document.

Image of page 13

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes