Figures and Tables

scenario 7.1 during the year your economic costs were

$100,000

scenario 7.3 your annual economic costs are

$110,000

scenario 7.2 a yearly normal rate of return for your company is

$20,000

6.16 the price of a hot dog is $2, jason's income is

$200

6.2 assume mr lingle is on budget constraint AC. if the price of a beer is $5, mr lingle's monthly income is

$200

6.2 assume mr lingle is on budget constraint AC. if the price of a garden burger is $6, mr lingle's monthly income is

$240

scenario 7.2 your economic profit last year was

$30,000

scenario 7.1 a yearly normal rate of return for your computer software firm would be

$40,000

scenario 7.2 your accounting profit last year was

$50,000

scenario 7.3 your annual operating profit is

$50,000

7.1 this corn producer produces 100 bushels of corn and sells each bushel at $5. the cost of producing each bushel is $2. this corn producer's total revenue is _____ and profit is ____

$500, $300

scenario 7.2 during the year your economic costs were

$70,000

6.1 assume tom is on a budget constraint AC and the price of a hamburger is $4.00 tom's monthly income is

$80

6.1 assume tom is on a budget constraint AC and the price of a hot dog is $2.00. tom's monthly income is

$80

6.2 along budget constraint AC, the opportunity cost of one garden burger is

1 beer

6.8 the marginal utility of the first movie rental is

15

table 6.1 the marginal utility of the third hamburger per day is

15

table 6.1 the marginal utility of the second hamburger per day si

22

6.5 molly's budget constraint is BD. molly's income is $375, the price of DVDs is $15 and the price of a CD is $25. at pint D the consumer is buying _____ DVDs and _____ CDs

25, 0

table 6.2 the marginal utility of the second candy bar per day is

35

7.2 the average product of the second worker is _____ lawns moved

4

scenario 7.4 the average product of labor with three workers is

4

6.1 assume tom's budget constraint is AV. at which point does does tom consume only hot dogs

A

6.14 assume ellen has two products available, pizza and hamburgers. ellen is always willing to trade one pizza for one hamburger regardless of how many pizzas and hamburgers she has. the curve panel _____ represents her indifference curve

A

6.2 assume mr lingle's budget is AC. at which point does mr. lingle spend exactly his income

A

table 7.1 which technology is the most labor intensive

A

table 7.2 if the hourly price of labor is $10 and the hourly price of capital is $1, which production technology should be selected

A

table 7.2 which technology is most capital intensive

A

6.5 molly's budget constraint is BD if the price of CDs increases, her new budget constraint becomes

AD

6.6 bill's budget constraint is BD. if the price of bell peppers increases, bill's new budget constraint is

AD

6.14 assume ellen has two products available, pizza and hamburgers. ellen must be compensated with more pizzas as she gives up more burgers. the curve in panel ____ represents her indifference curve

B

table 7.1 if the hourly wage rate is $10 and the hourly price of capital is $25, which pro ducting technology should be selected

B

6.5 molly's budget constraint is EF. if her income decreases and the price of CDs incases, her new budget constraint could be

BD and AD both B and C are correct

6.5 molly's budget constraint is BD. if the price of CDs decreases, her new budget constraint become

CD

6.5 molly's budget constraint is EF. if her income decreases while the price of goods are unchanged, her new budget constraint could be

CD

table 6.1 diminishing marginal utility sets in after the _____ soda per day

first

table 6.2 diminishing marginal utility sets in after the ____ candy bar per day

first

6.8 the ____ movie rental has a marginal utility of zero

fourth

6.9 the ____ video game rental has a marginal utility of zero

fourth

6.16 why was jason NOT maximizing utility at point C

his marginal utility per dollar spent on the last sandwich is greater than his marginal utility spend on his last hot dog

6.1 AC represents toms budget constraint. point C then represents a point that is

not available because it represent a combination of hamburgers and hot dogs that he cannot purchase with his income

6.7 along budget constraint AB, the price of good X is $10 and the price of good Y is $12. if the price of X increase to $15, the budget constraint will

pivot in at point B

scenario 7.4 diminishing returns to labor set in with the ____ worker

third

6.1 the slope of budget constraint AC us

-.20

6.15 at point A, the slop of the indifference curve is

-.67

6.2 the slope of budget constraint AC is

-1

7.10 the slop of isocost AB is

-1

7.9 the slope of isocost AB is

-1

7.9 the slope of isocost CD is

-1

6.8 the total utility of the three movies is ____ and the marginal utility of the third movie is _____

28,3

scenario 7.4 the marginal product of the third worker is

3

8.4 Up to Point A

average variable costs are decreasing

8.4 After Point A

average variable costs are increasing

table 6.1 assume that a store is giving hamburgers and sodas away for free. consumers can have as many sodas and hamburgers as they way, but the food has to be consumed one unit at a time. if george has already had one soda and two hamburgers, then george should

be indifference between consuming the second soda or the third hamburger

6.1 along budget constraint AC, the opportunity cost of one hot dog

is 1/2 of a hamburger

table 8.3 Form the information in the given table,

the firm experiences diminishing returns to its variable input

7.10 the firm's isocost line could shift from AB to CD if

the firm's total expenditures increased by 50% the price of capital and labor each decreased by 33.3% either B or C

7.9 the firm's isocost line could shift from AB to CD if

the firms total expenditures increased by 33% or the price of capital and labor decreased by 25%

6.10 kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their from fell from $6 to $4. this illustrates the idea of

the law of diminishing marginal utility

7.9 the firm's isocost line would shift from CD to CE if

the price of labor fell

7.10 the firm's isocost line would shift from CE to CD if

the price of labor rises

6.13 if arthur moves from indifference curve 1 to curve 2, then arthur's

total utility increases

7.3 the average product of the second worker is ____ yards raked

17

table 6.2 the total utility of five candy bars per day is

120

7.3 the marginal product of the second worker is _____ yards raked

13.5

7.4 the average product of the third worker is

14

6.4 bill's budget constraint is AC. if the black bean price decreases, hill's budget constraint will be

AD

6.4 bill's budget constraint is AC. his budget constraint would shift to AB if the price of

black beans increased

6.1 tom's budget constraint is AC. his choice set include all points

bounded by the area OAC

7.6 the shoe manufacturer currently produces 50 units of output. if this shoe manufacturer increases labor from 15 to 20, the magical product of the 20th worker

cannot be determined because output remains constant

7.8 if roller skates unlimited moves from isoquant B to isoquant A, the number of roller skates produced

decreases

7.5 diminishing argil returns set in after the ____ worker is hired

fifth

table 8.2 Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price for earrings is $60. To maximize profits Sherry should produce ________ pairs of earrings.

four

table 8.3 If the firm is in a perfectly competitive industry with a market price of $30 per unit, the firm will produce _________ units and earn a profit of ________.

four, -$20

6.2 mr lingle's budget constraint is AC. his choice set is all points

in the areas bounded by OAC

6.6 bill's budget constraint was originally AD. if his new budget constraint is EF, then his income

increase and the price of bell peppers decreased

6.15 the slope of the indifference curve is the ratio of the

marginal utility of ice cream cones to the marginal utility of ice cream sandwiches

6.1 assume tom's budget constraint is AC. he does NOT spend his entire income at point

E

6.2 assume mr lingle's budget constraint is AC. he will not spend his entire income at point

E

7.11 If the firm's level of total cat is represented by the given isocost line, the firm's optimal combination and labor is given by

Point C

table 8.1 Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output?

Production technique B

7.4 the average product of the fifth worker is

11

8.4 the vertical distance AB represents

total fixed costs

7.2 the marginal product of the second worker is ____ lawns moved

5

6.15 if the price of an ice cream cone is $2, jason's income is

$300

7.4 the average product of the sixth worker is

8.33

scenario 7.4 the average product of labor with four workers is

3.5

scenario 7.1 your economic profit last year was

$-10,000

6.11 gordons opportunity cost of one hour of leisure is

$10

7.9 the firm is currently along isocost CD. if the price of capital is $10, then the price of labor is

$10

8.2 The total fixed cost for The Barber Shop are $3,000. If The Barber Shop produces 300 hair cuts, the average fixed cost are

$10

8.2 If Sherry produces zero earrings, her total fixed cost are

$100

8.5 if two ovens are produced, average variable costs are

$100

table 8.1 Assume the price of labor (L) is $5 per unit, the price of capital (K) is $10 per unit, and that firms attempt to minimize costs. The total variable cost of producing one unit of output is

$100

8.4 The marginal cost of the sixth microwave oven is

$116.67

7.9 if the price of capital is $20, then along isocost line AB total cost is

$1200

table 8.2 If Sherry produces three pairs of earrings, her total variable costs are

$140

8.4 The marginal cost of the third microwave oven is

$150

8.4 If three microwave ovens are produced, average variable costs are

$166.67

8.3 THe marginal cost of the 10th basketball is

$2

8.4 If six microwave ovens are produced, Micro Oven's average total costs are

$200.00

7.11 if this firm's cost of capital is $20 per unit and its cost of labor is $10 per unit, the isocost line represents a total cost of

$2000

7.9 if the price of capital is $40, then along isocost line AB total cost is

$2400

table 8.2 If Sherry produces four pairs of earrings, her average fixed costs are

$25

8.4 Micro Oven's average fixed costs of producing two units of output are

$250

8.5 the total fixed costs for ollies ovens are

$250

6.16 if the price of an ice cream cone is $2, the price of ice cream sandwiches is

$3

7.1 a corn producer's profit is $200 and is producing 100 bushels of corn. then he must have a cost per bushel of ____

$3

7.10 the firm is currently along isocost CD. if the price of capital is $30, then the price of labor is

$30

table 8.3 The marginal cost of the fourth unit is ________ and the average total cost of the fourth unit is _______.

$30, $35

scenario 7.1 your accounting profit last year was

$30,000

8.4 If two microwave ovens are produced, Micro Oven's total variable costs are

$350

table 8.2 If Sherry produces five pairs of earrings, her total costs are

$370

table 8.2 If Sherry produces two pairs of earrings, her marginal cost is

$40

8.1 The total fixed cost for Cyndy's Floral Arrangments are $1,000. If Cyndy's Floral Arrangements produces 200 silk flower arrangements, the average fixed cost are

$5

8.5 the marginal cost of the third oven is

$50

table 8.2 If Sherry produces one pair of earrings, her total variable cost are

$50

7.12. If the firms cost of capital is $30 per unit and its cost of labor is $60 per unit, the iszcost line represents a total cost of

$6,000

table 8.3 What is the total cost of producing zero units of output?

$60

7.9 this firm is currently along isocost CE. if the price of capital is $12, then the price of labor is

$8

8.3 If the total fixed cost is $50, then average total cost of producing 10 basketballs is

$8

8.4 if six microwave ovens are produced, mice oven's average fixed costs are

$83.33

8.5 if three ovens are produced, average variable costs are

$83.33

table 8.1 Assume that the revenant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit until, the average variable cost of producing two units of output is

$90

scenario 7.3 your annual economic profit is

-$10,000

7.10 the slope of isocost CE is

-1/2

7.11 At point C the slope of q2 = 200 is

-1/2

7.11 The slope of the isocost line is

-1/2

7.12 At point C the slope of isoquant q2=200 is

-2

7.12 The slope of the isocost line is

-2

7.9 the slope of isocost CE is

-2/3

7.4 the marginal product of the sixth worker is

-5

6.8 the marginal utility of the fourth movie rental is

0

6.9 the marginal utility of the fourth video game rental is

0

6.5 molly;s budget constraint is BD. molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. at point B the consumer is buying _____ DVDs and ______CDs

0,20

6.2 along budget constraint AC, the opportunity cost of one beer is

1 gardenburger

7.1 this corn producer earns a total revenue of $900. each bushel of corn is sold for $5. this corn producer must be selling ____ bushels of corn

180

scenario 7.4 the marginal product of the fourth worker is

2

6.1 along budget constraint AC, the opportunity cost of one hamburger is

2 hot dogs

7.4 the marginal product of the second worker is

20

7.11. The firms level of total cost is represented by the given isocost line. At the optimal combination of capital and labor, the firm produces________ units sof output.

200

table 6.2 if the price of a candy bar is $1, the price of a hot dog is $2, and aaron has $6 of income, aaron's utility maximizing combination of sodas and hamburgers per day

4 candy bars and 1 hotdog

table 6.1 if the price of a soda is $2, the price of a hamburger is $6, and george has $14 of income. george's utility maximizing combination of sodas and hamburgers per day is

4 sodas and 1 hamburger

scenario 7.4 the marginal product of the second worker is

5

table 6.1 the total utility of five sodas per day is

64

6.9 the marginal utility of the second video game rental is

8

table 6.1 the total utility of five hamburgers per day is

80

6.6 Bill/s budget constraint is BD. bill's income is $800, the price of a bell pepper is $1, and the price of a bag of balck beans is $1. at point B bill is buying ____ bell peppers and ____ bags of black beans

800,0

6.15 jason maximizes utility at point

A

7.6 if the price of capital is $10 and the price of labor is $20, the optimal production technique is

A

7.12 The the firm's level cost is represented by the given isocost line, the firm's optional combination of capital and labor is given by Point

C

table 8.1 Assuming the prie of labor (L) is $5 per unit and the of capital (K) is $10per unit, which of the following statements is TRUE?

C) The firm will use production technique B to produce the first two units of output and production technique A to produce the third unit of output

6.1 assume tom's budget constraint is AC. given his current monthly income he CANNOT purchase the bundle of goods at point

D

table 7.1 which technology is the most capital intensive

D

table 7.2 if the hourly wage rate is $10 and the hourly price of capital is $50, which production technology should be selected

D

table 7.2 which technology is most labor intensive

D

6.3 molly's budget constraint is AC. it would swivel to AD if the price of

DVDs decreases

6.3 Molly's budget constraint is AC. it would swivel to AB if the price of

DVDs increases

6.5 molly's budget constraint is CD. if her income increases, her new budget constraint is

EF

6.3 molly's budget constraint is AC. molly can purchase

all of the points along AB

6.2 mr lingle's budget constraint is AC. point E is

an available option and mr lingle does not spend all of his income

6.2 mr lingle's budget constraint is AC. point C is

an available option and mr lingle exactly spends all of his income

8.4 average total costs will be minimized at

an output level greater than six microwave ovens

6.6 bill's budget constraint was originally CD. if his new budget is EF, then his income

increased

7.7 if roller skates unlimited moves from isoquant A to isoquant B, the number of roller skates produced

increases

6.10 the current price of a turkey sandwich is $6. if kyle is currently buying five turkey sandwiches a week, he _____ maximizing utility because the marginal utility _____ than its price

is not, gained from the fifth sandwich is greater

6.10 the current price of a turkey sandwich is $6. if kyle is currently buying nine turkey sandwiches a week, he ____ maximizing utility because the marginal utility _____ than its price

is not, gained from the ninth sandwich is less

8.3 The marginal cost of the nigh basketball is

less than $2

7.11 At Point C the above value of the slope of q2 = 200 is

less than 2

8.4 average variable costs are minimized at an output level

of 6

8.4 Marginal costs will equal average variable costs at

six microwave ovens

6.4 bill's budget constraint is AC. if the bell peppers price increases, bill's budget constraint will be

the budget constraint is not depicted on the diagram

table 7.3 suppose output varies, veteris paribus, with labor input in the following manner displayed above. after how many units of labor do diminishing returns set in

they do not set in

7.4 diminishing marginal returns begin when the ____ worker is hired

third