economic

if the total fixed cost is $200, the total variable cost is $600, and total product is 4 units, then the average total cost must be

$200

refer to the provided table. the marginal cost of producing the sixth unit of output is

$25

the phrase "don't cry over spilt milk" could be rephrased in economic terms by saying,

"sunk costs are irrelevant to a decision"

marginal costs can be defined as the

change in total cost resulting from one more unit of production

marginal utility is the

change in total utility obtained by consuming one more unit of a good

to maximize utility, a consumer should allocate money income so that the

marginal utility obtained from the last dollar spent on each product is the same

suppose that MUx/Px exceeds MUy/Py. to maximize utility, the consumer who is spending all her money income should buy

more of X and/or less of Y

when total product is increasing at a decreasing rate, the marginal product is

positive and decreasing

(last word) from the viewpoint of potential criminals, the probability of being fired or imprisoned

raises the marginal cost or "price" of criminal behavior.

the substitution effect

refers to the change in the quantity demanded of a good due to a change in its relative price

suppose that Ms. thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $2 and $4, respectively. the marginal utility of the last units of A and B are 16 and 24 respectively. these data suggest that Ms. Thomson

should buy less B and more A

assume you are spending your full budget and purchasing such amounts of X and Y that the marginal utility from the last units consumed is 40 and 20 utils, respectively. assume (a) the prices if X and Y are $8 and $4 respectively; (b) it takes 3 hours to consume a unit of X and ! hour to consume a unit of Y; and (c) your time is worth $2 per hour. you

should consume less of X and more of Y

refer to the table. the addition of which unit has the greatest marginal utility

sixth

implicit and explicit costs are different in that

the former refer to nonexpenditure costs and the latter to monetary payments

when the price of gasoline increases significantly, the delivery companies like UPS, fedex, and the USPS all find

their TVC curves shifting up

which of the following statements is correct

total utility is the accumulation or summation of marginal utility

the ability of a good or service to satisfy wants is called

utility

the diagram of product curve suggest that

when marginal product lies above average product, average product is rising

At what point does marginal product equal average product

where average product is equal to its maximum value

which of the following is not correct

where total product is at a maximum, average product is also at a maximum

where total utility is at a maximum, marginal utility is

zero

the table shows the marginal-utility schedule for goods A and B for a hypothetical consumer. the price of good A is $1, and the price of good B is $2. the income of the consumer is $8. if the price of A decreases, while the price of B and the consumer's income stay the same, we would expect

MU/P of A to increase, and the consumer will thus buy less of B

in the diagram, the range of diminishing marginal returns is

Q1Q3

in the short run

TVC will increase for a time at a diminishing rate, but then beyond some point will increase at an increasing rate

the main difference between the short run and the long run is that

in the short run, some inputs are fixed and some are variable

when the price of a product falls for a good, the

income and substitution effects will encourage consumers to purchase more of the product

refer to the provided graph showing the marginal product (MPl) and the average product of labor (APl). at which quantity of labor employed does diminishing marginal returns set in?

B

if the prices of X and Y are $2 and $4 per unit, respectively, and this consumer has $10 to income to spend, to maximize total utility, this consumer should buy

1 unit of X and 2 units of Y

answer the question on the basis of the following total utility data for products L and M. assume that the prices of L snd M are $3 and $4, respectively, and that the consumer's income is $18. how many units of the two products will the rational consumer purchase?

2 of L and 3 of M

refer to the data. the value of W is

20

answer the question based on the table below showing the marginal utility schedules for products X and product Y for a hypothetical consumer. the price of product X is $4, and the price of product y is $2. the income of the consumer is $20. if the consumer buys both product X and product Y, how much will the consumer buy of each to maximize utility?

3X and 4Y

answer the question on the basis of the following total utility data for products L and M. assume that the prices of L snd M are $3 and $4, respectively, and that the consumer's income is $18. what level of total utility does the rational consumer realize in equilibrium

51 units

the total output of a firm will be at a maximum where

MP id zero

an explicit cost is

a money payment made for resources not owned by the firm itself

economic cost can be defined as

a payment that must be made to obtain and retain the services of a resource

if MUa/Pa= 100/$35 = MUb/Pb=300/? = MUc/Pc =400/?, the prices of products B and C in consumer equilibrium

are $105 and $140, respectively

the law of diminishing returns indicates that

as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point

diminishing marginal utility explains why

demand curves are downsloping

to the economist, total cost includes

explicit and implicit costs

if you owned a small farm, which of the following would most likely be a fixed cost

hail insurance