Microeconomics Test 1

​Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should a. sell the ticket because the marginal benefit exceeds the marginal cost. b. sell the ticket because the marginal benefit exceeds the average cost. c. not sell the ticket because the marginal benefit is less than the marginal cost. d. not sell the ticket because the marginal benefit is less than the average cost.

a. sell the ticket because the marginal benefit exceeds the marginal cost.

Suppose there is a decrease in the price of corn. If corn is an input into the production of ethanol, we would expect the supply curve for ethanol to a. shift rightward. b. shift leftward. c. become flatter. d. remain unchanged.

b. shift leftward.

​Today's supply curve for ipods could shift in response to a change in a. today's price of ipods. b. the expected future price of ipods. c. the number of buyers of ipods. d. All of the above are correct.

b. the expected future price of ipods.