ECO Exam 2
What is Monica's marginal utility per dollar spent on the third cup of soup
12/2=6units of utility per dollar spent
if the total cost of producing 20 units of output is 1,000 and the average variable cost is 35 what is the firms average fixed cost at that level of output
15.00
The average product of labor of the 4th worker
17
if monica wants to maximize her utility how many units of each good should she buy
3 cups of soup and 4 sandwhichs
Suppose workers are paid 8 per hour and capital cost 10 per unit.What is the minimum cost of producing 200 key lime pies?
40(8)+24(10)=560
if a consumer receives 20 units of utility from consuming two candy bars and 25 units of utility from consuming three candy bars, the marginal utility of the third candy bar
5 utility units 25 -20 equals 5
The marginal product of labor of the 3rd worker is
57-42=15 2nd worker minus 3rd worker
Consider the budget constraint BC1 if the price of DVDs is 20.00 and the price of CDs is 10.00 what is the consumer's income
6*20+12*10=240
in making decisions about what to consume a persons goal is to
allocate their limited income among all the products they wish to buy so they receive the highest total utility
The average total cost of production
equals total cost of production divided by the quantity of output
total utility is maximized in the consumption of two goods by
equating the marginal utility per dollar for each good consumed
As a firm hires more labor in the short run the
extra output of another worker may rise at first but eventually must fall
Marginal utility
extra satisfaction received from consuming one more unit of a product
An item has utility for a consumer if it
is something everyone else wants
consumers have to make tradeoffs in deciding what to consume because
they are limited by a budget constraint
Which of the following statements is true
total cost =fixed cost+variable cost
Which of the following costs will not change as out changes
total fixed cost
Diminishing marginal productivity sets in after
the 2nd worker is hired
The marginal product of labor is defined as
the additional output that results when one more worker is hired holding all other resources constant
when the price of blueberry muffins falls and you buy more of them because they are relatively less expensive this
the substitution effect
As a consumer consumes more and more of a product in a particular time period eventually marginal utility
declines
Which of the following is a fixed cost
Mortgage payments on a factory building
Which of the following is held constant along any indifference curve
The total utility derived from consuming any bundle of goods on the indifference curve
Which of the following is the best example of a short run adjustment
Your local Wal-Mart hires two more associates
Which of the following is a factor of production that is generally fixed in the short run
a factory buidling
Implicit costs can be defined as
non-monetary opportunity costs
when the price of coffee a normal good,falls, causing your purchasing power to rise you buy more of it due to
the income effect
When the marginal product of labor rises
the marginal cost of production falls
Joey experiences diminishing marginal utility from eating hot dogs then
the marginal utility from the next hot dog Joey eats will be negative
The change in the budget constraint from BC1 to BC2 implies
the price of DVDS has increased and the price of CDs has decreased