Econ

incremental 18. Thuy Anh runs a small flower shop in the town of Extra Hours Total Revenue ( dollars ) Florabunda . She is debating whether she should extend her Open hours of operation . Thuy Anh figures that her sales revenue 1 $ 25 will depend on the number of extra hours the flower shop is hire a worker for those extra hours at a wage rate of $ 16 per 3 70 open as shown in the table to the right . She would have to 2 45 hour , 4 90 5 105 Using marginal analysis , by how many hours should Thuy 6 110 Anh extend her flower shop's hours of operations ? OA . 2 hours OB . 3 hours OC . 4 hours OD . 5 hours Answer : C. 4 hours

4

DeShawn's Detailing is a service that details cars at the customers ' homes or places of work . DeShawn's cost for a basic service . For a total price of $ 90 , DeShawn will also detail the car's package . What is the marginal cost of adding the detailing package is $ 40 , and he charges $ 75 for this engine , a service that adds an additional $ 20 to the total cost of the engine detailing to the basic detailing package ? $ 20 $ 30 $ 60 $60 plus the value of his time i

A. $ 20

He is debating whether should extend his hours of 22. Santiago runs a comic book store in the town of East Arbor operation . Santiago depend on the number of extra hours the store is open as figures he s that his sales revenue will shown in the table to the right . He would have to hire a worker for those extra hours at a wage rate of $ 18 per hour . What is Santiago's open for an extra two hours instead of one hour ? marginal benefit if he decides to stay OA . $ 40 OB . $ 50 OC . $ 120 COD . $ 190 .

Answer : B. $ 50 East

DeShawn's Detailing is a service that details cars at the customers ' homes or places of work . DeShawn's cost for a basic detailing package is $ 40 , and he charges $ 75 for this service . For a total price of $ 90 , DeShawn will also detail the car's engine , a service that adds an additional $ 20 to the total cost of the package . What is DeShawn's marginal benefit if he sells a basic detailing package ? A . $ 35 B . 75$ C . He makes a marginal loss of $ 15 , not a marginal benefit . D . The marginal benefit cannot be determined

Answer : B. $ 75

17. Suppose a cell - phone manufacturer currently sells 20,000 cell - phones per week and makes a profit of $ 5,000 per week A manager at the plant observes , ' Although the last 3,000 cell phones we produced and sold increased our revenue by $ 6,000 and our costs by $ 6,700 , we are still making an overall profit of $ 5,000 per week so I think we're on the right track We are producing the optimal number of cell phones . Refer to the scenario above . Had the firm not produced and sold the last 3,000 cell phones , would its profit be higher or lower , and by how much ? OA . Its profit will be $ 6,000 lower . OB . Its profit will be $ 700 higher . OC . Its profit will be $ 700 lower . OD . Its profit will be $ 6,700 higher . Answer : B. Its profit will be $ 700 higher

Answer : B. Its profit will be $ 700 higher .

OA . explicit cost OB . marginal cost OC . operating cost OD . Any of the above terms are correct .

Answer : B. marginal cost

24. The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit O True O False Answer : True

Answer : True

9/13/22 , 11:26 AM Print Extra Hours Florabunda . She is debating 19. Thuy Anh runs a small flower shop in the town of whether she should extend her that her sales revenue Open hours of operation . Thuy Anh figures hire a worker for those extra hours at a wage rate of $ 16 per open as shown in the table to the right . She would have to will depend on the number of extra hours the flower shop is hour What is Thuy Anh's marginal benefit if she decides to stay open for an extra three hours instead of two hours ? OA SO OB $ 20 OC . $ 25 COD . $ 45 Answer : C. $ 25

C

depend on the worker for those extra hours shown in the table to the right . He would have to hire a number of extra hours the store is open as operation , Santiago figures that his sales revenue will He is debating whether he should extend his hours of 21 Santiago runs a comic book store in the town of East Arbor at a wage rate of $ 18 per hour . many hours should Santiago extend his store's Using marginal analysis , by how hours of operations ? OA 2 hours OB . 3 hours Q.C. 4 hours OD . 5 hours Answer : C. 4 hours

C

A grocery store sells a bag describe the money received from the sale of potatoes at a fixed price of $ 2.30 . Which of the following is a term used by economists to of an additional bag of potatoes ? A . gross earnings B . marginal costs C . marginal revenue D . pure profit

C. marginal revenue

20. The the sale of an additional unit of a product is a marginal benefit to the firm OA . extra cost of OB , sales tax on OC . total value of OD . revenue received from Answer : D. revenue received from

D

Consider the following statements : Which of the above statements demonstrates that economic agents respond to incentives ? a . Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area . b . Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies install expensive security monitoring equipment c . Firms produce more of a particular DVD when its selling price rises .

D . a , b , and c

23. Santiago runs a comic book store in the town of East Arbor Extra extend his hours of operation Santiago figures He is debating whether he should that his sales revenue will hours the store is open as shown in the table to the depend on the number of extra right . He would have to hire per M a worker for those extra hours at a wage rate of $ PER 18 hour What is Santiago's marginal cost if he decides to stay open for an extra two hours instead of one hour OA $ 18 OB . $ 36 OC . $ 38 OD . $ 102

OD . $ 102 Answer : A $ 18

Suppose the U.S. government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $ 100,000 . These doctors would be exemplifying the economic idea that A . optimal decisions are made at the margin . B . people respond to economic incentives . C . people are rational . D . equity is more important than efficiency .

People responf to economic incentives

Which of the following statements about scarcity is true ?

Scarcity refers to the situation in which unlimited wants exceed limited resources .

Marginal refers to

The couch's on the cost of benefit of the next unit it individual

In economics come together , the term to trade refers to a group of buyers and sellers of a product and the arrangement by which they

come together to trade market

Making " how much " decisions involves A . determining the additional benefits and the additional costs of that activity . B . calculating the total benefits of the activity and determining if you are satisfied with that amount . C . calculating the total costs of the activity and determining if you can afford to incur that expenditure . D . calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity .

determining the additional benefits and the additional costs of that activity

In economics , the term ______ means " additional allocative optimal marginal equity

marginal

Economists reason that the optimal decision is to continue any activity up to the point where the . marginal benefit is zero . marginal benefit is greater than the marginal cost marginal benefit equals the marginal cost . marginal cost is zero

marginal benefit equals the marginal cost .

Suppose a cell - phone manufacturer currently sells 20,000 cell - phones per week and makes a profit of $ 5,000 per week . A manager at the plant observes , ' Although the last 3,000 cell phones we produced and sold increased our revenue by $ 6,000 and our costs by $ 6,700 , we are still making an overall profit of $ 5,000 per week so I think we're on the right track . We are producing the optimal number of cell phones . Refer to the scenario above . Using marginal analysis terminology , what is another economic term for the incremental revenue received from the sale of the last 3,000 cell phones ? A marginal revenue B . sales revenue C . gross profit D . gross earnings

marginal revenue .

In economics , the term refers to a group of buyers come together to trade .

market

DeShawn's Detailing is a service that details cars at the customers ' homes or places of work . DeShawn's cost for a basic detailing package is $ 40 , and he charges $ 75 for this service . For a total price of $ 90 , DeShawn will also detail the car's engine , a service that adds an additional $ 20 to the total cost of the package . Should DeShawn continue to offer the engine detailing service ? A . yes , but only if he raises the price of the basic detailing package B . yes , he still makes a profit by selling the engine detailing service with the basic detailing package C . no , his marginal benefit is less than his marginal cost D . More information is needed for DeShawn to make this decision .

no , his marginal benefit is less than his marginal cost

Print Questions Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave meaning they make the best decisions given their knowledge of the costs and benefits .

rationally

In economics , choices must be made because we live in a world of Scarcity Greed Unemployment unlimited resources

scarcity

By definition , economics is the study of

the choices people make to attain their goals , given their scarce resources