quizzes 13-15

introduce a subsidy of $16 per unit.

If the government wanted to tax or subsidize this good to achieve the socially optimal level of output, it would

production function

Refer to Figure 13-1. The graph illustrates a typical

marginal product decreases.

Refer to Figure 13-2. As the number of workers increases,

Average fixed cost

Refer to Figure 13-2. Curve C represents which type of cost curve?

ATCA

Refer to Figure 13-6. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?

less than $3.

Refer to Figure 14-1. The firm should shut down if the market price is

above $6.5.

Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is

70

Refer to Figure 15-5. Based upon the information shown, how many units will Bearclaws produce to maximize profits?

There is widespread unemployment in the economy.

Refer to Figure 2-3. Suppose this economy is producing at point B. Which of the following statements would best explain this situation?

BA

Refer to Figure 5-6. Along which of these segments of the supply curve is supply most elastic?

$14

Refer to Figure 15-5. Based upon the information shown, what price will Bearclaws charge to maximize profits?

$280

Refer to Figure 15-5. Given that Bearclaws chooses the profit-maximizing price and quantity, what profit level will it obtain?

F and V

Refer to Figure 15-8. What is the socially efficient price and quantity for this natural monopolist?

$2,170

Refer to Scenario 15-2. What is Vincent's total revenue on a typical day?

300 bushels of rye

Refer to Table 1. What is the opportunity cost of increasing the production of corn from 500 bushels to 1000 bushels?

2

Refer to Table 13-3. At which number of workers does diminishing marginal product begin?

80 units

Refer to Table 13-3. The marginal product of the second worker is

$4

Refer to Table 13-8. What is the average fixed cost of producing 5 units of output?

$70

Refer to Table 13-8. What is the marginal cost of producing the fifth unit of output?

Ushaped

Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its average-total-cost curve is

$0.32

Refer to Table 13-9. The average total cost of producing 240 units is

$0.19.

Refer to Table 13-9. The average variable cost of producing 240 units is

$120

Refer to Table 14-4. What is the average revenue when 6 units are sold?

5 units of output because marginal revenue equals marginal cost.

Refer to Table 14-6. In order to maximize profits, the firm will produce

5 units

Refer to Table 14-6. The firm should not produce an output level beyond

is less than marginal revenue.

Refer to Table 14-6. The firm will produce a quantity greater than three because at 3 units of output, marginal cost

3 units

Refer to Table 14-8. If the firm's fixed cost of production is $3, and the market price is $10, how many units should the firm produce to maximize profit?

$20

Refer to Table 15-1. What is the maximum profit that the monopolist can earn?

consumer surplus to new consumers who enter the market.

Suppose that the price falls from P2 to P1. Area C represents the

Q2

What is the socially optimal quantity output in this market?