CH. 13 ECO siyu

If Danielle sells 300 wrist bands for $0.50 each, her total revenues are a. $150 b. $299.50 c. $300 d. $600

a. $150

Marcus sells 300 candy bars at $0.50 each. His total costs are $125. His profits are $125. His profits are a. $25 b. $124.50 c. $125 d. $150

a. $25

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $3,500. When it produces 101 units of output, its total costs are $3,750. What is the marginal cost of producing the 101st unit of output? a. $250 b. $275 c. $340.91 d. $350

a. $250

Total revenue equals a. Price x quantity b. price/quantity c. (price x quantity) - total cost d. Output - input

a. Price x quantity

The Three Amigo's company produced and sold 500 dog beds. The average cost of production per dog bed was $50. Each dog be sold for a price of $65. The Three Amigos total costs are a. $7,500 b. $25,000 c. $32,500 d. $67,500

b. $25,000

table 13-2: At which number of workers does diminishing marginal product begin? a. 1 b. 2 c. 3 d. 4

b. 2

The difference between accounting profit and economic profit is a. Explicit costs b. Implicit costs c. Total revenue d. Marginal product

b. Implicit costs

Economists normally assume that the goal of a firm is to a. Maximize its total revenue b. Maximize its profit c. Minimize its explicit costs d. Minimize its total cost

b. Maximize its profit

Table 13-7 What is the value of B? a. $25 b. $50 c. $100 d. $200

c. $100

Table 13-7: What is the value of C? a. $25 b. $50 c. $100 d. $200

c. $100

What is the marginal product of the third worker? a. 300 units b. 200 units c. 100 units d. 50 units

c. 100 units

Figure 13-9 At levels of output between M and N, the firm experiences a. Economies of scale b. Diseconomies of scale c. Constant returns to scale d. Both the benefits of specialization and diminishing marginal productivity

c. Constant returns to scale

Some costs do not vary with the quantity of output produced. Those costs are called a. Marginal costs b. Average costs c. Fixed costs d. Explicit costs

c. Fixed costs

Cindy's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is a. $100 b. $200 c. $300 d. $500

d. $500