Eco Exam 4
EQ The market price of pomegranates is 2
- ($50.00; $2.00)
EQ The following shows the costs associated with the numbe
- (66)
EQ In the graph, which shows a firm in a perfectly competitive market
- (80)
EQ James opens a wing shop in Gulf Coast Town Center. To do thi
- (Implicit cost)
EQ Larry left a job as an accountant making $40,000
- (Larry is actually experiencing an economic loss of $2,560)
EQ Which statement about marginal revenue (MR) is NOT true?
- (MR is the total revenue divided by the total cost)
EQ The graph represents a firm that produces the profit-maximizing
- (Market supply will increase, pushing prices lower.)
EQ Miguel owns a taco shop in the city
- (Miguel has some control over his price)
EQ What happens when firms in an industry are earning positive economic
- (New firms will enter the indeurey causing a rightard shift)
EQ If the price of copper pipes is $70 in a perfectly competitive
- (No, this firm should be producing more to maximize profit.)
EQ In the graph, which shows a firm in a perfectly
- (Price = $12; Quantity = 14)
EQ If the average total cost is
- (Some firms will exit the market, pushing the market price higher)
EQ If Glass Inc. produces 80
- (The price would remain the same.)
EQ In a perfectly competitive industry, short-run
- (enter; decrease)
EQ If the market price is $60
- (he firm should continue producing in the short run in order to minimize losses.)
EQ A firm will expand the
- (marginal revenue exceeds its marginal cost)
EQ A firm will expand the amount of output i
- (marginal revenue exceeds its marginal cost)
EQ Which market structure does not exhibit
- (perfect competition)
EQ Which sequence of market structures ranks
- (perfect competition; oligopoly; monopoly)
EQ two farms, farm a and farm b, grow identical types of wheat
- (perfect substitute for wheat from farm B)
EQ a firm In a perfectly competitive industry, long
- (there are no barriers to entry).
EQ Which goal BEST explains why
- (to earn a profit)
EQ If the total variable cost of producing three wickets is $30, while the average fixed cost of producing three wickets is $25, then the total cost of producing three wickets is:
- 105
EQ If the total cost of 3 units is $40 and the total cost of 4 units is $50, the marginal cost of the fourth unit is:
- 50 - 40 = 10
JUSTIN BEGINS How do you find diminishing marginal returns
- Begins when the marginal product begins to fall (Forth Worker)
AJ PLANS What is sunk cost /
- Sunk costs are the costs that are not recoverable once spent. - Future decisions should not depend on sunk costs already incurred. (500)
EQ Which statement describes a situation in which negative returns to labor occur
- The marginal product of labor falls below zero
WHICH STATEMENT IS T When Happens when the total product curve reaches a peak
- When marginal Product is ZERO
What INPUTS can be altered in the short run
- amount of labor they employ
AMY DESC What are explicit costs /
- are those expenses paid directly to some other economic entity - These costs include wages, lease payments, expenditures for raw materials, taxes, utilities, INTEREST payed
A WEDDING PLA How to calculate Marginal Product
- by dividing the change in output (ΔQ) by the change in labor (ΔL) ((120-70)/1) = 50)
What are the characteristics of a corporation
- have most of the legal rights of individuals - able to issue stock to raise capital - the ability to raise large amounts of capital because of limited liability - is limited to the amount they have invested in (or paid for) the stock
EQ A firm experiencing
- increasing returns to scale
EQ Which product is least likely to be produced in a perfectly competitive market?
- products that have less deman - (airline jet fuel)
DANS CAR - 150000 (Rev) 120000 (expli c) 40000 (impli c) /
150000-12000-40000 = -10000 > 0 Means no normal Profit
DAVID EARNS THREE How do you find averages
5 + 9 +12+11/4 = 3
WALMART IS ABLE What is Long run economies of scale
A savings in cost gained by increasing production (Long run economies of scale)
EQ statements best describes the short run in economics
IDK