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
