Econ 101 Final

The figure below shows the market for tires. The figure shows that the government has imposed a tax of per tire.

$30

The figure above shows the market for mattresses. As a result of a tax imposed by the government, the price buyers pay changes from and the equilibrium quantity changes from mattresses.

$300 to $325; 5,000 to 4,000

A perfectly competitive firm

sells a product that has perfect substitutes.

If buyers pay more of a tax than do the sellers

supply is more elastic than demand.

Based on the figure above, after the tax is imposed, the price (including the tax) paid by the buyer is per MP3 player.

$105

The figure below shows the demand, marginal revenue, and marginal cost curves forPaul's Parrot pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, the price is per pillow and the marginal cost is .

$70; $40

The total product is 10 units. The average total cost is $30 and the average fixed cost is $10. What is the amount of the TOTAL variable cost?

200

Suppose the Busy Bee Caf is the monopoly producer of hamburgers in Hugo, Oklahoma.The figure below represents the demand, marginal revenue, and marginal cost curves for this establishment. In order to maximize profit, the Busy Bee produces hamburgers per hour and sets a price of per hamburger.

20; $3.00

Bill owns a lawn-care company in Windermere, Florida, whose cost curves are illustratedin the figure below. The market equilibrium price in this perfectly competitive marketequals $32 per lawn mowed. At this price, how many lawns will Bill mow per week?A. more than 10 and less than 30B. 30C. 40D. 50

40

Use the figure below to answer this question. If a monopoly maximized profit

800 units will be produced and a deadweight loss equal to area ABC will occur.

Use the figure below to answer this question. We know the figure shows market because the .

a perfectly competitive; marginal revenue curve is horizontal

The figure below shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the producer surplus?

area D

Ann pays $3,850 in taxes on an income of $38,500. Therefore her

average tax rate must be 10 percent.

The vertical distance between total cost curve and total variable cost curve is equal to

total fixed cost.

Anna owns a dog grooming salon in Brunswick, Georgia. The table below has Anna's total product schedule. Anna pays each worker $300 per week and she pays rent of $600a week for her salon. These are her only costs. When Anna has a staff of 2 workers, her average total cost equals

$12.00.

The figure below shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. What would be the maximum price someone would pay in the black market?

$130 per jacket

A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's economic profit?

$150

A single-price monopoly can sell 2 units for $8.50 per unit. In order to sell 3 units, the price must be $8.00 per unit. The marginal revenue from selling the third unit is

$7.00.

Bill is an economics professor who earns $40,000 teaching but decides to leave and fulfil his dream of catering barbecues. During his first year of barbecuing he earned total revenue of $60,000. He spent $30,000 on food and supplies. He also paid his wife $10,000to help serve food. The normal profit for an entrepreneur running a barbecue business is $3,000. He also rented an industrial grill/fry truck for $12,000. An accountant would conclude that Bill's profit was

$8,000.

Use the figure below to answer this question. If the firm is maximizing profit, it will produce units and make an economic profit of .

1,200; $3,600

Use the figure below to answer this question. Consider a perfectly competitive market experiencing good times. Figure shows a firm maximizing profit in the short run because it produces units and makes an economic profit of

A; 100; $2 per unit

The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the table below. Based on the table, which of the following is correct?

Answers A, B, and C are correct.

A monopoly

Both answers B and C are correct.

Based on the figure above, after the tax is imposed, the consumer surplus

decreases by $17,500.

Computer memory chips are produced on wafers, each wafer having many separate chips that are separated and sold. The table below shows costs for a perfectly competitive producer of computer memory chips. If the market price of a wafer is $2,400 dollars, the firm is

incurring an economic loss of $2,000 an hour.

When a rent ceiling below the equilibrium rent is put in place, the outcome is

inefficient because marginal benefit is greater than marginal cost.

Because the supply of land is perfectly inelastic, a tax on land income

is paid entirely by the suppliers.

If a monopoly wants to sell a greater quantity of output, it must

lower its price.

The table below shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The total variable cost of producing 80 units equals

more than $70 and less than $90.

The graph below shows long run costs for a firm. If the firm produces units,it will experience .

more than 9,000; diseconomies of scale because managing larger firms results in higher costs

The demand and supply schedules for pizza are in the table below. A price ceiling of $8per slice results in

neither a shortage nor a surplus.

The figure below shows a perfectly competitive market that was in a long-run equilibriumon demand curve D0. Due to a permanent change in demand to D1, existing firms will begin to make an economic which will result in the market.

profit; new firms entering

The figure above shows the market for mattresses. As a result of the government's tax on mattresses, consumer surplus , producer surplus and the government collects tax revenue of .

shrinks; shrinks; $120,000