ECN Ch. 8
Smoking illegal public building, market failure
Externalities
In the long run there are no __ costs
Fixed
Payments to individuals for which no current goods or services are exchanged are known as
Income transfer
Assume a toy company hires an additional worker to assemble toys, and the size of the factory and amount of equipment remain constant. As a result, the level of output increases but by a smaller amount than when the previous additional worker was hired. This is an example of:
Law of diminishing returns
A firm should continue to hire additional workers as long as the
MPP is equal to the market wage rate
The change in total output that results from one additional unit of input is the
Marginal physical product
In a perfectly competmarket
No buyer or seller has market power
A monopolist maximizes profit
None of the above
I'm figure 6.1 the market demand D2 and supply curve S the market price will be
P2
If marginal cost equals price, the _ is at a maximum
Profit
Total revenue minus total cost equals
Profit
The production decision is the
Selection of short run rate of output
Which of the following is true about the short run?
Some inputs (costs) are fixed
Min wage $20 results
Surplus 56 workers
The price of a good multiplied by the quantity sold equals
Total revenue
Fig 7.1 profit max level output monopolist
3
Figure 6.3 for a perfectly competitive firm. If price is $4 the profit maximizing rate of output is
32
What is the marginal physical product of the fourth unit of labor in Table 5.1
42
A minimum wage impacts the labor market by causing
An increase in the quantity of labor supplied and a decrease in the quantity of labor demanded
Which of the following is U shaped
Average total cost curve
Market power form market failure
Competition restricted output reduced and higher price
In figure 7.1 the price charged by a profit maximizing monopolist
$7
Fig 7.2 Ind comp the profit max level output
Between 3 & 4
Which of the following is not characteristic of a perfectly competitive market
Brand Loyalty
As more labor is hired in the short run, diminishing returns are observed because
The new workers have less capital and land to work with
