BYUI ECON 150 IQUIZ UNIT 6

Gino's Pizza has a special offer: one slice for $2, two slices for $3.50, three slices for $4.50, and four slices for $5.00. The marginal cost of the third slice is:

$1

Gennaro is a blogger living in Italy who could work for la Repubblica (a newspaper in Rome) as a food critic for $50,000 a year but instead runs the blogging business online through advertising, making revenues of$80,000 a year. His only business expenses are $2,000 for supplies and $18,000 in rent for his office space. What is Gennaro's economic profit from working as a freelance writer?

$10,000

(Table: Marginal Cost of Sweaters) Use Table: Marginal Cost of Sweaters. The marginal cost of the fourth sweater is:

$15

(Figure: Budget Lines for Tangerines and Watermelons) Use Figure: Budget Lines for Tangerines and Watermelons. For some time, Albert has had $5 per month to spend on tangerines and watermelons. The price of a tangerine is $0.50, and the price of a watermelon is $0.25. Which chart shows what will happen to his budget line if his income increases to $6?

A

(Figure: Budget Lines for Bottled Water and Biscotti) Use Figure: Budget Lines for Bottled Water and Biscotti. For months now, Angela has had $20 per month to spend on bottled water and biscotti. The price of each cup of bottled water and each biscotti is $1. Which chart shows what will happen to her budget line if the price of a cup of bottled water falls to $0.50?

D

If Giordano's pizza in Chicago computed its profits without taking into account its implicit costs, it would then only be considering its _____ profit.

accounting

Accounting profit differs from economic profit because:

economic costs are generally higher than accounting costs.

John really enjoys eating Nathan's hot dogs in New York City. His marginal utilities from the first three hotdogs he consumes are 200, 150, and 125, respectively. If John were to consume a fourth hot dog, you would expect his total utility to be:

less than 600.

(Table: The Utility of California Rolls) Use Table: The Utility of California Rolls. Marginal utility begins to diminish with the _____ roll.

second

At the optimal consumption bundle:

the marginal utility per dollar spent is equalized across all goods consumed.