2. Sophia - Microeconomics (3) - Unit 2

Consider the following chart. How much is the marginal cost when total output increases from 240 pounds to 320 pounds? Total Output(Pounds)Total Cost(TC = FC + VC)Marginal Cost01501503002404503206003907504509004201050 $1.67 $1.875 $1.50 $2.325

$1.875

Ben's Bagels charges $10 per dozen bagels, and Ben sells 30 dozen bagels each day. Ben's costs of production is $150 in total each day. Ben's accounting profit per day is __________. $150 $300 $450 $50

$150

Consider the following chart. What is the marginal product of labor (MPL) of the seventh worker? Land(20 Acres)(1)Labor (Workers)(2)Total Product(Pounds)(3)Marginal Product of Labor (MPL)(4)20 acres00-20 acres1100+10020 acres2220+12020 acres3290+7020 acres4350+6020 acres5380+3020 acres6400+2020 acres7390 +20 -20 -10 +10

-10

Consider the indifference curves below. On indifference curve , which combination of meals is a possible choice? 2 chicken and 8 vegetarian 2 chicken and 7 vegetarian 4 chicken and 5 vegetarian 8 chicken and 7 vegetarian

2 chicken and 7 vegetarian

If this firm that sells scarves were in a break-even situation, approximately how many scarves would the firm sell? 52 scarves 38 scarves 33 scarves 58 scarves

33 scarves

The minimum efficient scale on the long-run cost curve below occurs at about what output level? 300 units 450 units 900 units 750 units

450 units

Consider the following chart. How much is the marginal cost when total output increases from 520 pounds to 550 pounds? Total Output(Pounds)Total Cost(TC = FC + VC)Marginal Cost050200100350150440200520250550300560350 a.) $1.67 b.) $1.25 c.) $2.33 d.) $1.33

a.) $1.67

Which of the following is a fixed input for an airline company? a.) Renting space (gates and terminals) at airports b.) Purchase of food and drinks for passengers c.) Wages paid to baggage handlers d.) Salaries paid to sales staff

a.) Renting space (gates and terminals) at airports

According to __________, individual preferences are shaped by society. heuristics rational choice theory traditional economics behavioral economics

behavioral economics

Consider the long-run cost curve below. The downward-sloping portion on the left side illustrates __________. a.) diseconomies of scale b.) constant cost industry c.) economies of scale d.) minimum efficient scale

c.) economies of scale

When you choose the point of tangency where the indifference curve touches the budget line, you are __________. a.) choosing a point on the indifference curve that lies below your budget b.) ignoring the constraints of product prices and consumer income c.) making the optimal choice for a combination of two goods d.) making a choice that meets your budget but does not maximize your satisfaction

c.) making the optimal choice for a combination of two goods

After deducting all explicit costs of running a business from all explicit revenue earned, you get __________. a.) economic profit b.) total revenue c.) total costs d.) accounting profit

d.) accounting profit

Rational choice theory states that individuals makes decisions __________. a.) in different ways based on the particular situation and sometimes based solely on emotions b.) based on all parties' concerns c.) based on their concern for others as well as their own interests d.) based on an optimization of their own level of benefit

d.) based on an optimization of their own level of benefit

You own a small business and from past experience you know that your product is price elastic. To increase total sales revenue, you should . a.) keep price the same b.) sell less of the product c.) increase the price d.) decrease the price

d.) decrease the price

The slope of the indifference curve is the __________, and the slope of the budget curve is the __________. a.) marginal rate of transformation; marginal rate of substitution b.) marginal rate of substitution; law of diminishing marginal returns c.) law of diminishing marginal returns; marginal rate of transformation d.) marginal rate of substitution; marginal rate of transformation.

d.) marginal rate of substitution; marginal rate of transformation.

Consider the budget curve graph below. The slope between points A and C is __________, and this slope is called the __________. a.) +1.0; marginal rate of substitution (MRS) b.) −1.5; marginal rate of substitution (MRS) c.) +1.5; marginal rate of transformation (MRT) d.) −1.0; marginal rate of transformation (MRT)

d.) −1.0; marginal rate of transformation (MRT)

Consider the indifference curve graph below. The slope between points A and C is __________, and this slope is called the __________. a.) −1.8; marginal rate of substitution (MRS) b.) −1.8; marginal rate of transformation (MRT) c.) −1.2; marginal rate of transformation (MRT) d.) −1.2; marginal rate of substitution (MRS)

d.) −1.2; marginal rate of substitution (MRS)

Unlike accounting profit, economic profit includes __________. explicit costs implicit revenue and implicit costs explicit revenue implicit revenue minus implicit costs

implicit revenue and implicit costs

By choosing a point along the total physical product curve, physical output is __________. reduced equalized minimized maximized

maximized

You decide to decrease the price of your product to increase total sales revenue, because you believe your product's demand is __________. unit elastic perfectly inelastic price inelastic price elastic

price elastic

Consider the indifference curve graph below. The slope between points A and C is __________ and is known as the __________. −2.67; marginal rate of transformation (MRT) +1.33; marginal rate of transformation (MRT) −2.67; marginal rate of substitution (MRS) −1.33; marginal rate of substitution (MRS)

−1.33; marginal rate of substitution (MRS)

If variable costs for a firm are $800, the average total cost is $6, and the firm sells 175 units, what are the firm's fixed costs? $975 $250 $162.50 $1,050

$250

Consider the budget line graph below. If Mexican meals are $12 and Italian meals are also $12, what is the consumer's total budget for possible combinations of meals? $75 $45 $60 $30

$60

When the price of salad was $5, a cafeteria sold 50 packets of salad dressing a day at $0.50 per packet. When they increased the price of salad by 40%, but kept the dressing at the same price, they sold 50% fewer packets of salad dressing.The cross-price elasticity calculated using the cross-price elasticity formula is __________ and the goods are __________. 0.5; substitutes -1.25; complements 1.25; substitutes -0.5; complements

-1.25; complements

If the marginal utility per the price of Good A is $2.40, and the marginal utility per the price for Good B is $2.50, what does the utility-maximizing rule tell you to do, if the budget allows it? Purchase 1 more unit of Good B and stop. Purchase 1 more unit of Good A and compare again. Purchase 1 more unit of Good B and compare again. Purchase 1 more unit of Good A and stop.

Purchase 1 more unit of Good B and compare again.

Which of the following is an assumption made by rational choice theory? Rational individuals do consider what others have chosen before making a decision. Rational individuals have perfect information regarding all possible choices and make these decisions without cost. Rational individuals make decisions that are often based solely on emotions. Rational individuals make decisions for themselves and others based on the costs and benefits of the

Rational individuals have perfect information regarding all possible choices and make these decisions without cost.

When a firm uses four laborers, it can produce 300 units daily. A fifth laborer allows the firm to produce 440 units daily. Which of the following is true regarding production? The average product for the fifth laborer is 60 units. The total product for the fifth laborer is 740 units. The total product for the fifth laborer is 300 units. The average product for the fifth laborer is 88 units.

The average product for the fifth laborer is 88 units.

Consider the following chart. How much is the marginal cost when total output increases from 350 pounds to 440 pounds? Total Output(Pounds)Total Cost(TC = FC + VC)Marginal Cost050200100350150440200520250550300560350 a.) $0.56 b.) $0.35 c.) $0.75 d.) $1.00

a.) $0.56

Sparkle Dreams has produced 450 pairs of earrings that cost the company $5.00 each to make. They recently sold 450 pairs of earrings to a local accessory store at $11.50 each. The opportunity cost of the owner's initial investment in Sparkle Dreams is $1,000. What is Sparkle Dreams' economic profit? a.) $1,925 b.) $2,925 c.) $1,425 d.) $925

a.) $1,925

Calculate Marginal Revenue when output rises from 250 to 320 pounds. Total Output (Q)(Pounds)(1)Price per Pound($1.33)(2)Total Revenue(3)Marginal Revenue(4)0$1.33$0.00-100$1.33$133.00250$1.33$332.50320$1.33$425.60380$1.33$505.40420$1.33$558.60430$1.33$571.90390$1.33$518.70 a.) $1.33 b.) $1.00 c.) $2.00 d.) $1.67

a.) $1.33

Consider the budget line graph below. If Mexican meals are $10 and Italian meals are also $10, what is the consumer's total budget for possible combinations of meals? a.) $100 b.) $80 c.) $120 d.) $60

a.) $100

Sarah sells tulips at her store and charges her customers $12 per dozen. She sells 20 dozen each day. The tulips that she orders to sell in her store cost $216 total for 20 dozen. Based on this information, the accounting profit that Sarah makes each day is __________. a.) $24 b.) $240 c.) $8 d.) $204

a.) $24

Before Kelly opened up her boutique, she worked as a hair stylist in a salon and earned a $33,000 annual salary. Below is a list of Kelly's financial facts for her shop's first year in business. $145,000 = total revenue$20,000 = rental fees$8,000 = utilities$30,000 = salary for assistant manager$50,000 = merchandise Kelly's economic profit for her shop's first year was __________. a.) $4,000 b.) $108,000 c.) $33,000 d.) $37,000

a.) $4,000

If the variable costs for a firm are $10,000, the fixed costs are $5,000, and the firm sells 300 units, what is the firm's average total cost? a.) $50 b.) $40 c.) $500 d.) $400

a.) $50

Consider the chart below. The marginal utility for the fifth unit of Chicken Fajitas is _____. Quantity of Chicken Fajitas(1)Total Utility(2)001352653854100511061157112 a.) +10 utils b.) +20 utils c.) +100 utils d.) +85 utils

a.) +10 utils

A popular clothing website sold five units of a dress when the price was $300 and 20 units when the price was marked down to $100. What is the own-price elasticity of demand for the dress as calculated using the midpoint formula? a.) -1.2 b.) -2 c.) 2.5 d.) 0.67

a.) -1.2

Trent needed pinnies for the lacrosse team to wear during scrimmages. A local supplier told Trent that he could purchase pinnies for $10 each. He asked the supplier to hold five pinnies for him to purchase. However, when Trent arrived at the store a few days later, he found the price of the pinnies had increased to $12. Due to the price increase, Trent only purchased four pinnies. Trent's own-price elasticity of the pinnies, calculated using the mid-point formula, is __________. a.) -1.22 b.) -2 c.) 4.5 d.) 3

a.) -1.22

A store recently marked a hydration belt on sale, lowering the price by 40% from $20 to $12. The store also sells a hydration bottle, which is similar to the belt except that runners can hold it in their hands with a strap while running. When the store lowered the price of the hydration belt, the quantity of hydration bottles sold decreased by 28%.Using the cross-price elasticity formula, the cross-price elasticity is __________ and the goods are __________. a.) 0.70; substitutes b.) -1.333; complements c.) 1.4; substitutes d.) -1.40; complements

a.) 0.70; substitutes

In the past six months, Luke's take-home income increased from $4,000 per month to $5,000 per month (an increase of 25%). While on vacation, Luke encouraged his wife to buy some new jewelry. Normally, his wife would only buy one item of jewelry while on vacation. However, this time she purchased four items of jewelry (an increase of 300%).The income elasticity calculated using the formula for income elasticity is __________ and the jewelry items are a __________ good. a.) 12.0; luxury b.) 6.0; luxury c.) 12.0; normal d.) 0.12; normal

a.) 12.0; luxury

Consider the following chart. After which worker does the marginal product of labor (MPL) begin to decrease? Land(10 Acres)(1)Labor (Workers)(2)Total Product(Pounds)(3)Marginal Product of Labor (MPL)(4)10 acres00-10 acres15010 acres212010 acres320010 acres430010 acres538010 acres640010 acres7390 a.) After the fourth worker b.) After the 2nd worker c.) After the third worker d.) After the fifth worker

a.) After the fourth worker

When reading the long-run cost curve from left to right, which is the correct order of economies of scale as reflected in the curve? a.) Economies of scale, constant returns-to-scale, diseconomies of scale b.) Constant returns-to-scale, diseconomies of scale, economies of scale c.) Diseconomies of scale, constant returns-to-scale, economies of Scale d.) Constant returns-to-scale, economies of scale, diseconomies of scale

a.) Economies of scale, constant returns-to-scale, diseconomies of scale

Which of the following statements is true for rational choice theory? a.) Its assumptions are used in many explanations for how consumers and producers optimize their decisions. b.) Its assumptions apply solely to the field of economics. c.) Its assumptions have always been relied on in economic theory. d.) Its assumptions and its description of human behavior are imprecise.

a.) Its assumptions are used in many explanations for how consumers and producers optimize their decisions.

When a firm uses four laborers, it can produce 400 units daily. A fifth laborer allows the firm to produce 560 units daily. Which of the following statements is true regarding production? a.) The average product for the fifth laborer is 112 units. b.) The average product for the fourth laborer is 40 units. c.) The total product for the ninth laborer is 960 units. d.) The average product for the fifth laborer is 32 units.

a.) The average product for the fifth laborer is 112 units.

What is the equation for elasticity (E)? a.) The percentage change in variable B divided by the percentage change in variable A. b.) The value of variable B divided by the value of variable A. c.) The percentage change in variable B multiplied by the percentage change in variable A. d.) The value of variable B multiplied by the value of variable A.

a.) The percentage change in variable B divided by the percentage change in variable A.

The sensitivity of the quantity demanded of one product to a change in the price of a related product is known as __________. a.) cross-price elasticity b.) product elasticity c.) income elasticity d.) own-price elasticity

a.) cross-price elasticity

Mental rules of thumb used to shortcut a decision-making process are referred to as __________. a.) heuristics b.) rational choice theory c.) altruism d.) traditional economics

a.) heuristics

Consider the indifference curves below. Moving outward from to , , and , we get __________. a.) higher levels of satisfaction b.) the same level of satisfaction c.) lower levels of satisfaction d.) higher and lower levels of satisfaction

a.) higher levels of satisfaction

Consider the following chart. How much is the marginal cost when total output increases from 440 pounds to 520 pounds? Total Output (Pounds)Total Cost (TC = FC + VC)Marginal Cost050200100350150440200520250550300560350 a.) $0.50 b.) $0.625 c.) $0.325 d.) $0.85

b.) $0.625

An investor was choosing between contributing $75,000 to a boutique or a local shoe shop. After careful deliberation, the investor chose the boutique. In the first year, the boutique generated enough profit to pay the investor $15,000 (based on an agreed percentage of the profits). If the investor had chosen the local shoe shop, she would have received $9,000 (also based on an agreed percentage of the profits). The investor's economic profit was __________. a.) $15,000 b.) $6,000 c.) $51,000 d.) $24,000

b.) $6,000

Rachel is hosting a party at her house and plans to grill hotdogs. The price for a package of hotdog buns has increased by 30%. Rachel decides she will buy 20% fewer hotdogs than she did last year.Using the cross-price elasticity formula, the cross-price elasticity is __________ and the goods are __________. a.) 1.5; substitutes b.) -0.67; complements c.) -1; complements d.) 2; substitutes

b.) -0.67; complements

Ashley received a raise at work that increased her monthly income from $1,000 to $1,250 (an increase of 25%). Last year, Ashley bought 20 slices of cake for her birthday party. With her increased income, she is able to buy 24 slices for her birthday this year (an increase of 20%).The income elasticity calculated using the formula for income elasticity is __________ and the cake slices are a __________ good. a.) 0.5; normal b.) 0.8; normal c.) 1.5; luxury d.) 1.25; luxury

b.) 0.8; normal

At which output level will the short-run supply curve of a profit-maximizing, perfectly competitive firm start? a.) 20 units b.) 25 units c.) 10 units d.) 15 units

b.) 25 units

Consider the long-run cost curve below. At about what production level do economies of scale run out and constant returns begin ? a.) 150 units b.) 450 units c.) 750 units d.) 300 units

b.) 450 units

Which of the following is an assumption made by rational choice theory? a.) A rational agent considers what others have chosen or what others think before making a decision. b.) A rational agent has preferences that are logically consistent. c.) A rational agent does not have perfect information regarding all possible choices. d.) A rational agent spends time, energy, and/or resources to make a decision.

b.) A rational agent has preferences that are logically consistent.

Consider the following chart. After which worker does the marginal product of labor (MPL) begin to decrease? Land(20 Acres)(1)Labor (Workers)(2)Total Product(Pounds)(3)Marginal Product of Labor (MPL)(4)20 acres00-20 acres110020 acres222020 acres329020 acres435020 acres538020 acres640020 acres7390 a.) After the first worker b.) After the second worker c.) After the third worker d.) After the sixth worker

b.) After the second worker

When will the firm pictured in the graph shut down? a.) At any price below P1 b.) At any price below P2 c.) At any price above P1 d.) At any price between P1 and P2

b.) At any price below P2

The formula for average total cost is either Total Cost/Total Output, or __________. a.) Total Cost - Total Variable Cost b.) Average Fixed Cost + Average Variable Cost c.) Total Cost - Total Fixed Cost d.) Total Fixed Cost + Total Variable Cost

b.) Average Fixed Cost + Average Variable Cost

Which of the following is a fixed input for a computer company? a.) Electricity and gas to run their factory during production hours b.) Lease on its factory c.) Materials to make the computers d.) Wages to workers

b.) Lease on its factory

Using the graph below, determine the profit-maximizing price and quantity to produce. a.) Profit-maximizing price = $4Quantity to produce = 8 units b.) Profit-maximizing price = $4Quantity to produce = 6 units c.) Profit-maximizing price = $4Quantity to produce = 4 units d.) Profit-maximizing price = $4Quantity to produce = 2 units

b.) Profit-maximizing price = $4Quantity to produce = 6 units

Which of the following statements is true if a firm finds that, with three workers, it can produce 45 units? a.) The average product of labor is 135 units. b.) The average product of labor is 15 units. c.) The total product of labor is 15 units. d.) The total product of labor is 135 units.

b.) The average product of labor is 15 units.

What do the points on a budget line represent? a.) Possible customer satisfaction levels b.) The highest attainable consumption levels, given the current resources c.) The minimum attainable consumption level, given the current resources d.) The same level of total customer satisfaction

b.) The highest attainable consumption levels, given the current resources

Consider the diagram below. What has occurred to move the budget line from to ? a.) The price of Italian meals has decreased b.) The price of Italian meals has increased. c.) The price of Mexican meals has increased. d.) The price of Mexican meals has decreased.

b.) The price of Italian meals has increased.

Which of the following is a variable input for a transportation company? a.) Lease for the sales office downtown b.) Wages for drivers who are paid per trip c.) Interest paid on a loan taken out to purchase a group of buses d.) Garage space rented to house buses

b.) Wages for drivers who are paid per trip

According to behavioral economics, individual preferences __________. a.) are always based on self-interest b.) are shaped by society c.) simply exist d.) are logical and consistent

b.) are shaped by society

Perfectly inelastic demand for a good exists when __________. a.) a 50% increase in price will result in a 50% decrease in quantity demanded b.) consumers will purchase the same amount of the good, regardless of price c.) a small increase in price results in a big change in quantity demanded d.) firms will only offer a set amount of a good for sale, regardless of price

b.) consumers will purchase the same amount of the good, regardless of price

Calculate Marginal Revenue when output rises from 320 to 380 pounds. Total Output (Q)(Pounds)(1)Price per Pound($2.50)(2)Total Revenue(3)Marginal Revenue(4)0$2.50$0.00-100$2.50$250.00250$2.50$625.00320$2.50$800.00380$2.50$950.00420$2.50$1050.00430$2.50$1075.00390$2.50$975.00 a.) $1.50 b.) $3.00 c.) $2.50 d.) $1.75

c.) $2.50

If variable costs for a firm is $660, the average total cost is $8, and the firm sells 120 units, what are the firm's fixed costs? a.) $450 b.) $600 c.) $300 d.) $162.50

c.) $300

Calculate Total Sales Revenue and Average Sales Revenue at 320 pounds of output in the following chart. Total Output (Q)(Pounds)(1)Price per Pound($1.50)(2)Total Sales Revenue andAverage Sales Revenue(3)0$1.50100$1.50250$1.50320$1.50380$1.50420$1.50430$1.50 a.) $420.00; $1.50 b.) $480.00; $1.25 c.) $480.00; $1.50 d.) $420.00; $1.25

c.) $480.00; $1.50

Carrie's Cakes charges $15 per cake, and Carrie sells 10 cakes each day. Carrie's cost of production is $80 in total each day. Based on this information, Carrie's accounting profit per day is __________. a.) $220 b.) $65 c.) $70 d.) $150

c.) $70

In the past eight months, Raquel's income increased from $1,000 per month to $1,200 per month (an increase of 20%). Raquel usually made 16 cheese sandwiches in a month. With her new salary, she now only makes 10 sandwiches per month (a decrease of 37.5%).The income elasticity calculated using the formula for income elasticity is __________ and the cheese sandwiches are __________ good. a.) 0.5; a normal b.) 1.9; a luxury c.) -1.875; an inferior d.) -0.4; an inferior

c.) -1.875; an inferior

Juan raised the price of a certain brand of running shorts in his store by 15%. Once he did this, Juan noticed that customers were purchasing fewer running shirts. Last week, he sold 50% fewer shirts after the price increase of the shorts.The cross-price elasticity calculated using the cross-price elasticity formula is __________ and the goods are __________. a.) 1.04; substitutes b.) 0.05; substitutes c.) -3.33; complements d.) -0.23; complements

c.) -3.33; complements

Consider the indifference curve below, and choose the statement that is true. a.) C would not be chosen. b.) B and C would not be chosen. c.) A, B, and C have the same level of satisfaction. d.) A has the highest level of satisfaction.

c.) A, B, and C have the same level of satisfaction.

Consider the information in the chart below. Which of the following statements is correct? Total Output (Q)(Pounds)(1)Price per Pound($1.25)(2)Total Revenue(3)Average Revenue(4)0$1.25$0.00-100$1.25$125.00250$1.25$312.50320$1.25$400.00380$1.25$475.00420$1.25$525.00430$1.25$537.50 a.) Average Revenue = $1.75 b.) Average Revenue = $1.50 c.) Average Revenue = $1.25 d.) Average Revenue = $2.00

c.) Average Revenue = $1.25

Consider the diagram below. Which of the following statements is correct? a.) The firm should always try to produce at a point below the curve. b.) Producing at any point under the curve is also productively efficient. c.) Physical output is maximized by choosing a point along the curve. d.) The firm can produce at any point above the curve.

c.) Physical output is maximized by choosing a point along the curve.

Consider the indifference curves below. Which statement is true? a.) Point B on is the optimal choice. b.) Point B is the optimal choice. c.) Point B, where the curves intersect, cannot occur. d.) Point B on is the optimal choice.

c.) Point B, where the curves intersect, cannot occur.

Using the graph below, determine the profit-maximizing price and quantity to produce. a.) Profit-maximizing price = $100Quantity to produce = 200 units b.) Profit-maximizing price = $100Quantity to produce = 50 units c.) Profit-maximizing price = $100Quantity to produce = 150 units d.) Profit-maximizing price = $100Quantity to produce = 100 units

c.) Profit-maximizing price = $100Quantity to produce = 150 units

Using the graph below, determine the profit-maximizing price and quantity to produce. a.) Profit-maximizing price = $80Quantity to produce = 80 units b.) Profit-maximizing price = $80Quantity to produce = 160 units c.) Profit-maximizing price = $80Quantity to produce = 120 units d.) Profit-maximizing price = $80Quantity to produce = 40 units

c.) Profit-maximizing price = $80Quantity to produce = 120 units

Which of the following is the best example of inelastic demand? a.) Tom chose Pretty/Cheap disposable plates, which were $1 less than the Notso Cheap brand. b.) Tom chose the less expensive Common Scents brand of candles rather than the Scentsational brand. c.) Tom bought banners sold in town before. They were high quality, so he bought the same number of banners there again, despite an increase in price. d.) ​Tom's favorite store for table cloths raised its prices by 10%, so Tom purchased 50% less table cloths this year.

c.) Tom bought banners sold in town before. They were high quality, so he bought the same number of banners there again, despite an increase in price.

Behavioral economics' general method for gathering evidence relies on __________. a.) rational choice theory b.) behavioral economic principles, rather than actual observations of people's behavior c.) actually observing people's behavior to arrive at specific conclusions d.) reasoning based on principles that are assumed to be true

c.) actually observing people's behavior to arrive at specific conclusions

Consider the budget line graph below. A choice of 2 Mexican meals and 2 Italian meals would be __________. a.) a good choice, because you can always decide to buy more meals later b.) an inefficient choice, but any choice is good as long as it doesn't fall outside the budget line c.) an inefficient choice given the current resources, because the points on the budget line would be better choices d.) a good choice, because you would save resources

c.) an inefficient choice given the current resources, because the points on the budget line would be better choices

The total physical product curve represents the total physical amount of output possible given __________. a.) the maximum quantity of inputs b.) a standard set of inputs c.) different quantities of inputs d.) the same quantity of inputs

c.) different quantities of inputs

The income remaining after deducting all explicit and implicit costs from all explicit and implicit revenue is known as __________. a.) total revenue b.) total costs c.) economic profit d.) accounting profit

c.) economic profit

The primary goal of most firms is to __________. a.) create new products b.) serve their community c.) maximize profits d.) beat the competition

c.) maximize profits

The sensitivity of the quantity demanded of Cola B to a change in the price of Cola A is known as __________. product elasticity own-price elasticity cross-price elasticity income elasticity

cross-price elasticity

Calculate Marginal Revenue when output rises from 100 to 250 pounds. Total Output (Q)(Pounds)(1)Price per Pound($2.00)(2)Total Revenue(3)Marginal Revenue(4)0$2.00$0.00-100$2.00$200.00250$2.00$500.00320$2.00$640.00380$2.00$760.00420$2.00$840.00430$2.00$860.00390$2.00$780.00 a.) $1.00 b.) $2.50 c.) $1.50 d.) $2.00

d.) $2.00

Thread Club produced 500 sweatshirts with a production cost of $11.25 per sweatshirt. This month, they have sold 500 sweatshirts at $18.50 per sweatshirt. Based on this information, Thread Club's accounting profit for this month is __________. a.) $7,875 b.) $9,250 c.) $1,200 d.) $3,625

d.) $3,625

Consider the following chart. What is the marginal utility per the price for the fourth unit of Chicken Fajitas? The price of a Chicken Fajita is $10. Quantity of Chicken Fajitas(1)Total Utility(2)Marginal Utility(3)00-12525248233671948158986901783-7 a.) +1.6 utils per dollar b.) +1.0 utils per dollar c.) +1.9 utils per dollar d.) +1.4 utils per dollar

d.) +1.4 utils per dollar

Consider the chart below. The marginal utility for the sixth unit of Chicken Fajitas is _____. Quantity of Chicken Fajitas(1)Total Utility(2)001352653854100511061157112 a.) +15 utils b.) +115 utils c.) +110 utils d.) +5 utils

d.) +5 utils

onsider the following chart. What is the marginal product of labor (MPL) of the third worker? Land(20 Acres)(1)Labor (Workers)(2)Total Product(Pounds)(3)Marginal Product of Labor (MPL)(4)20 acres00-20 acres150+5020 acres2130+8020 acres322020 acres4300+8020 acres5370+7020 acres6390+2020 acres7380-10 a.) +70 b.) +110 c.) +100 d.) +90

d.) +90

John was ordering orange cones to use for soccer drills. If John decides to purchase cones now, he will buy 10 sets at $5 per set. If he decides to purchase the cones at a later time when the demand decreases, he will purchase 14 sets at $3 per set. The own-price elasticity of the soccer cones, calculated using the mid-point formula, is __________. a.) 0.25 b.) 4 c.) -12 d.) -0.67

d.) -0.67

If Sidney Airlines is currently breaking even, how many flights are they running? a.) 10 flights b.) 11 flights c.) 16 flights d.) 13 flights

d.) 13 flights

With a total budget available of $56.00, what does the utility-maximizing rule tell you the optimal quantity of Chicken Fajitas and Cheese Quesadillas is? Chicken FajitasPrice $14.00Cheese QuesadillasPrice $10.00Quantity (1)Total Utility (2)Marginal Utility (3)Marginal Utility per the Price (4)Quantity (5)Total Utility (6)Marginal Utility (7)Marginal Utility per the Price (8)00--00--12222+1.5711616+1.6024321+1.5023115+1.5036320+1.4334514+1.4048118+1.0045813+1.3059716+1.1457012+1.2061058+0.5768111+1.107100-5-0.367865+0.50 a.) 3 Chicken Fajitas; 2 Cheese Quesadillas b.) 3 Chicken Fajitas; 1 Cheese Quesadilla c.) 1 Chicken Fajita; 1 Cheese Quesadilla d.) 2 Chicken Fajitas; 2 Cheese Quesadillas

d.) 2 Chicken Fajitas; 2 Cheese Quesadillas

With a total budget available of $48.00, what does the utility-maximizing rule tell you the optimal quantity of Chicken Fajitas and Cheese Quesadillas is? Chicken FajitasPrice $10.00Cheese QuesadillasPrice $5.00Quantity (1)Total Utility (2)Marginal Utility (3)Marginal Utility per the Price (4)Quantity (5)Total Utility (6)Marginal Utility (7)Marginal Utility per the Price (8)00--00--12525+2.5011515+3.0024318+1.8022510+2.0035916+1.603338+1.6047314+1.404396+1.2058411+1.105435+1.006939+0.906814+0.80789-5-0.507843+0.60 a.) 2 Chicken Fajitas; 2 Cheese Quesadillas b.) 3 Chicken Fajitas; 2 Cheese Quesadillas c.) 3 Chicken Fajitas; 4 Cheese Quesadillas d.) 3 Chicken Fajitas; 3 Cheese Quesadillas

d.) 3 Chicken Fajitas; 3 Cheese Quesadillas

The optimal choice of chicken meals and vegetarian meals for and in the diagram below is __________. a.) 4 chicken meals and 3 vegetarian meals b.) 2 chicken meals and 7 vegetarian meals c.) 8 chicken meals and 1 vegetarian meal d.) 6 chicken meals and 2 vegetarian meals

d.) 6 chicken meals and 2 vegetarian meals

Which answer best defines elasticity? a.) Elasticity is a measure of the sensitivity of quantity demanded to a change in the price of another variable. b.) Elasticity is a measure of the sensitivity of a variable. c.) Elasticity is a measure of the sensitivity of quantity demanded to a change in own price. d.) Elasticity is a measure of the sensitivity of one variable to a change in another.

d.) Elasticity is a measure of the sensitivity of one variable to a change in another.

Which of the following describes perfectly elastic demand? a.) Buying less of another item in order to purchase a necessary good b.) Continuing to buy a good even when its price goes up c.) Buying the same amount of a good regardless of price fluctuations d.) Not buying a good at all anymore when the price goes up a little

d.) Not buying a good at all anymore when the price goes up a little

If the marginal utility per price of Good A is $5.00 and the marginal utility per price for Good B is $4.50, what does the utility-maximizing rule tell you to do if the budget allows it? a.) Purchase one more unit of Good B, and compare again. b.) Continue to purchase Good A until the budget runs out. c.) Continue to purchase Good B until the budget runs out. d.) Purchase one more unit of Good A, and compare again.

d.) Purchase one more unit of Good A, and compare again.

When a firm uses three laborers, it can produce 200 units daily. A fourth laborer allows the firm to produce 350 units daily. Which of the following statements is true regarding production? a.) The total product for the fourth laborer is 550 units. b.) The average product for the fourth laborer is 150 units. c.) The total product for the fourth laborer is 150 units. d.) The average product for the fourth laborer is 87.5 units.

d.) The average product for the fourth laborer is 87.5 units.

The production function is a mathematical expression describing the relationship between inputs and outputs.Each firm uses __________ of inputs and technical processes to produce its output. a.) the same set b.) a standard set c.) the maximum amount d.) a different set

d.) a different set

In microeconomics, the short run is a period of time __________. during which at least one of a firm's inputs is fixed during which all of a firm's inputs are variable usually defined as less than 6 months usually defined as less than 1 year

during which at least one of a firm's inputs is fixed