micro quiz 5-6
Your neighbors have offered to pay you to look after their dog while they are on vacation. It will take you one hour per day to feed, walk, and care for the dog, which you can do either before or after you go to work. Your regular job pays $10 per hour, and you can work up to eight hours per day. The smallest amount of money you would accept to look after your neighbor's dog is equal to:
the value of one hour of leisure, which is greater than zero
if marginal utility is positive, then consumption increases
total utility will increase
if marginal utility is positive, then as consumption increases
total utility will increases
individual supply curves generally slope
upward; of increasing oppurtunity costs
taking a limousine to a five star restaurant in new york is a
want to both joe average and donald trump
If Sarah's fixed costs double, then in the short run, her profit-maximizing level of output:
will not change
in general when the price of a fixed factor of production increases
marginal cost is unchanged
What is the lowest price per window that would induce John to spend at least one hour per day cleaning windows?
$1
When the pizzeria makes 50 pizzas a day, its average total cost is ______.
$15
If a firm spends $400 to produce 20 units of output and spends $880 to produce 40 units, then between 20 and 40 units of output, the marginal cost of production is:
$24
When Chris produces 5 mugs per day, his average variable cost is ______.
$6
Refer to the figure below. The marginal utility of the 5th apple is
-5
Jamie's marginal utility from muffins and from doughnuts (in utils) is shown below. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1.
10
chris's fixed cost is ___ per day
10 dollars
Suppose the market for shoes consists of three consumers. The table below shows the quantity demanded at various prices for each consumer:
11 pairs
Refer to the figure below. At the equilibrium price, total consumer surplus in this market is:
12,000 per day
Refer to the figure below. The marginal utility of consuming the 2nd apple is:
15
Refer to the figure below. If this firm is a price taker, then when the price of each unit of output is $30, this firm's total cost at its profit-maximizing level of output is ______.
1600
For a single seller, the figure below shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. If the market consists of 50 identical sellers, how much would be supplied in the market at a price of $14 per unit?
17500
or a single seller, the figure below shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. If the market consists of 50 identical sellers, how much would be supplied in the market at a price of $14 per unit
17500
During the summer, there are 300 students on campus. Each student's weekly demand for ice cream is shown above. When the price of ice cream is $2.00 per scoop, those 300 students purchase a total of ______ scoops per week from the student union
1800
Refer to the figure below. To increase output from 33 to 66 units requires ______ extra employee-hours; to increase output from 66 to 99 units requires ______ extra employee-hours.
1;2
Refer to the figure below. If the price of Good A is $5 and the price of Good B is $4, then the rational spending rule is satisfied when the consumer purchases ______ units of Good A and ______ units of Good B.
1;3
Taylor's marginal utility from watching movies and from eating out (in utils) is shown below. Taylor spends exactly $100 every month on these two forms of entertainment, and the price of each movie is $10 and the price of each dinner is $20.
2 movies and 4 dinners
Assume that Dusty has $30 in income, the price of a loaf of bread is $1.50, and the price of a jar of peanut butter is $3. Dusty can buy a maximum of ______ loaves of bread or a maximum of ______ jars of peanut butter.
20;10
Moe's reservation price for his economics textbook is $100. The week before the semester begins, Moe finds a copy of his textbook online for $75. Moe's consumer surplus from buying the textbook online is:
25
When the pizzeria makes 125 pizzas per day, its total revenue is:
2500
If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ______ cakes per day. You Answered
3
During a regular semester, there are 500 students on campus. Each student's weekly demand for ice cream is shown above. When the price of ice cream is $2.00 per scoop, those 500 students purchase a total of _____ scoops per week from the student union.
3000
When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. When Acme Dynamite produces 250 units of output, its profit is:
3750
Refer to the figure below. If Laura and Chris are the only two consumers in this market then at a price of $2.50 per pound, the market demand for hamburger is:
4.5 Pounds per week
technological innovation that reduces a firm's cost of producing additional units of output will lead to:
a increase shift right in the firms supply
Taylor's marginal utility from watching movies and from eating out (in utils) is shown below. Taylor spends exactly $100 every month on these two forms of entertainment, and the price of each movie is $10 and the price of each dinner is $20.
4; 6; 1/2
Refer to the figure below. If the price of Good A is $2 and the price of Good B is $6, then the rational spending rule is satisfies when the consumer purchases ______ units of Good A and ______ units of Good B.
4;3
If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $125 each, then Sarah should produce ______ cakes per day.
5
Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda is $0.75 per can, then what will be the market demand for soda each month?
50
Refer to the figure below. The total utility of consuming 4 pizzas a week is:
90
Donald has vast riches and consumes thousands of dollars' worth of consumer goods each week, yet he is never satisfied. Why not?
People's wants are unlimited
the short run is best defined as
a period of time sufficiently short that at least one factor of production is fixed
During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. After the third pie, your total utility
decreased
Sven likes to water ski, but can only water ski during the one week each year when he is on vacation. Therefore, he plans to ski every day, for eight hours a day. The first day, Sven skied for eight hours and enjoyed every hour. The second day, Sven slept in and then skied for seven hours, which was fun but not as much fun as the first day. The third day, Sven skied for six hours, but was starting to get a bit bored by the end. The fourth day, Sven skied for four hours and then took a nap. On the fifth day of Sven's vacation, Sven went blueberry picking all day. Sven's vacation convinced him that:
even for activities he really enjoys, diminishing marginal utility eventually set sin
in the short run, a profit maximizing firm will not shut down if its total revenue is
greater than or equal to its variable cost
Purchasing goods such that the ratio of marginal utility to price is equal across all goods results in the:
greatest total utility
The most important challenge facing a firm in a perfectly competitive market is deciding
how to much to produce
Suppose that each week Henry buys 12 peaches and 3 apples at his local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:
if Henry is maximizing his utility, then his marginal utility from the 12 th peach he buys must equal his marginal utility from the 3 rd apple he buys.
Refer to the figure below. If Laura and Chris are the only two consumers in this market, then when the price of hamburger decreases from $2.50 to $2.00 per pound, the quantity demanded in the market will ______ by ______ pound(s) per week.
increase; 1.5
refer to the figure below. when jeff goes from watching 3 to 4 movies a day his total utility
increases
Cory gets 18, 23, and 25 units worth of total utility from consuming 10, 11, and 12 raw oysters, respectively, and the price per oyster is 25 cents. Thus, one can infer that Cory:
is experiencing diminishing marginal utility
a profit maximizing firm will only produce a positive amount of output if
its total revenue is greater than equal to its variable cost
Joe is shopping for a new computer. A computer can be delivered to Joe's home for $1,200. Alternatively, Joe can pick up the same computer at the warehouse for $1,000. How should Joe buy the computer
joe should drive to the warehouse because 1000 is less than 1200
Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. If the lemonade market is perfectly competitive and price is already at the equilibrium level, Jenny can increase her revenue if she:
keeps the price of her lemondade the same and increases the output
Suppose a perfectly competitive firm is producing 1,000 units of output and the marginal cost of the 1,000 th unit is $7. If the firm can sell each unit of output for $7 and the firm's revenue is sufficient to cover its variable cost, the firm should:
leave production unchanged
Suppose Suzanne allocates her spending on apples and bananas according to the rational spending rule. If the price of apples is less than the price of bananas, then at Suzanne's optimal consumption bundle, her marginal utility from apples will be:
less than her marginal utility from bananas
A profit-maximizing firm will shut down if, at the firm's profit maximizing level of output, its total revenue is ______
less than its varaible cost
Sven likes to water ski, but can only water ski during the one week each year when he is on vacation. Therefore, he plans to ski every day, for eight hours a day. The first day, Sven skied for eight hours and enjoyed every hour. The second day, Sven slept in and then skied for seven hours, which was fun but not as much fun as the first day. The third day, Sven skied for six hours, but was starting to get a bit bored by the end. The fourth day, Sven skied for four hours and then took a nap. On the fifth day of Sven's vacation, Sven went blueberry picking all day. On the fifth day of Sven's vacation, he had decided that another hour of skiing would yield:
less utility than blueberry picking
During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. You got ______ utility from eating the first pie than from eating the third pie.
more
the _ combination of goods is combination that yields the highest utility given a consumers income
optimal
Refer to the figure below. If this firm is a price taker and the price of each unit of output is $15, then this firm should
produce 60 units of output
The difference between the price a seller actually receives for a good and the seller's reservation price is:
producer surplus
Suppose that Fiona spends all of her income on 10 units of good X and 14 units of good Y. Fiona's marginal utility from the 10 th unit of good X is 24 utils, and her marginal utility from the 14 th unit of good Y is 20 utils. If the price of good X is $8 per unit and the price of good Y is $5 per unit, then to comply with the rational spending rule, Fiona should:
purchase less than 10 units of good X more than 14 units of good Y
Suppose that Cathy spends all of her income on 20 units of good X and 25 units of good Y. Cathy's marginal utility from the 20 th unit of good X is 9 utils, and her marginal utility from the 25 th unit of good Y is 19 utils. If the price of good X is $0.50 per unit and the price of good Y is $1.00 per unit, then to comply with the rational spending rule, Cathy should:
purchase less than 20 units of good X and more than 25 units of good Y
Suppose that at your current consumption of two goods, A and B, MU A/P A = 25 and MU B/P B = 20. In order to maximize, your utility you should:
purchase more of A and less of b
Assume that the production technology required to produce goods X and Y are very similar. If a firm that is producing good X notices that the market price of good Y is rising, it will:
shift into producing good Y
Suppose that when a perfectly competitive firm produces 500 units of output a day, it earns an economic loss. If the price of each unit of output is $1.50, then, in the short run, it's clear that this firm:
should not shut down if its total variable cost is less than $750
Suppose that when a perfectly competitive firm produces 1,000 units of output, its total variable cost is $1,900. If the marginal cost of producing the 1,000 th unit is $1.70, and if the market price of each unit of output is $1.70, then the firm should:
shut down
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:
supply
the price equals marginal cost rule for profit maximization is specific example of which core principle
the cost-benefit principle
consumer surplus measures
the difference btween the most a buyer would be willing to pay for a product and the price actually paid
The figure below shows a single consumer's demand for ice cream at the student union.
the market demand curve for ice cream. from the student union is shift to the right
When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. If the price of dynamite drops to $10, should Acme Dynamite continue to operate in the short run?
yes because price is greater than average variable cost
f mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, he will gather:
zero bushels
