Micro-Final 2

(Table) Referring to the table, ________ is the total cost when producing 21 units.

$1,850

A thirsty person has a second glass of water. Compared with the person's first glass total utility will:

increase and marginal utility will decrease

The marginal cost curve:

intersects the ATC at its minimum point

(Table) According to the table, diminishing returns occur when hiring _______ worker.

$2,050

(Figure: Monopoly Pricing and Output Decisions) Using the graph, what is the equilibrium price for this monopolist?

$30

(Table) Referring to the table, output equals ________ when 7 workers are employed.

54

(Figure: Monopoly Pricing and Output Decisions) Using the graph, which of the following statements is TRUE about this monopolist?

It is operating at a profit

Marginal utility:

is the change in total satisfaction derived from consuming one more unit of a good

A firm is the only seller of a good with no close substitutes is a(n):

monopolist

The demand curve for an individual perfectly competitive firm is:

perfectly elastic

The assumed goal of any firm is to:

total revenue; explicit costs

Profits are equal to the difference between __________ and ____________.

total revenue; total costs

Sole proprietors and partnerships share the characteristic of:

unlimited liability

When economists refer to ____________, they are referring to a hypothetical measure of consumer satisfaction.

utility

The idea that monopolies do not have to act efficiently because they are protected from completion is known as:

x-inefficiency

A monopolist has four distinct groups of customers. Group A has an elasticity of demand of 0.2, B has an elasticity of demand of 0.8, C has an elasticity of demand of 1.0, and D has an elasticity of demand of 2.0. The group paying the highest price for the product will be:

A

(Figure: Determining Profit) Given the price of A, economic profit can be illustrated by which rectangle?

ACDF

The perfectly competitive market structure assumes all of the following, EXCEPT:

a small number of buyers and sellers

A price maker is a firm that:

can influence market price by adjusting its level of output.

A budget line shows:

consumption possibilities

An economic institution that combines factors of production into outputs for consumers is a(n):

firm

Economies of scale:

only occur in the short run

A perfectly competitive firms is a:

price taker, because it must accept the market equilibrium price

The law of diminishing marginal utility states:

that as a purchaser consumes more of a given product, the added utility from consuming an additional unit declines

Suppose the price of a taco is $1 and the price of a soft drink is $2. If Mehmet has $5, then he can buy:

three tacos and one soft drink