ECON 2202 Lecture 1: 4.Econ2102_assgn3_partA_solns
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QUESTION 17
[Table 2] This firm will maximize its profit if it produces at the point when:
a. | Profit is maximized. | |
b. | Total revenue is maximized. | |
c. | Total Cost is minimized. | |
d. | All of the above | |
e. | None of the above |
4 points
QUESTION 18
[Table 2] This firm will maximize its profit if it produces at the point when:
a. | Profit is maximized. | |
b. | Marginal cost is equal to marginal revenue | |
c. | Firm cannot be better off by producing more or less quantity | |
d. | A quantity of 13 units | |
e. | All of the above |
4 points
QUESTION 19
[Table 2] This firm will maximize its profit if it produces the following quantity:
Table 2
-1 | -2 | -3 | -4 | -5 | -6 | -7 |
Quantity Sold | Marginal Revenue | Marginal | Total | Total | Profit | |
Price | Cost | Cost | Revenue | |||
$10 | 10 | 80 | $100 | $20 | ||
$10 | 11 | (A) | 8 | 88 | $110 | $22 |
$10 | 12 | (B) | (E) | 97 | (G) | (I) |
$10 | 13 | (C) | (F) | 107 | (H) | (J) |
$10 | 14 | (D) | 11 | 118 | $140 | $22 |
a. | $9 | |
b. | $10 | |
c. | $11 | |
d. | $13 | |
e. | $14 |
4 points
QUESTION 20
[Table 2] If price increases from $10 to $11, this firm will maximize its profit if it produces the following quantity:
Table 2
-1 | -2 | -3 | -4 | -5 | -6 | -7 |
Quantity Sold | Marginal Revenue | Marginal | Total | Total | Profit | |
Price | Cost | Cost | Revenue | |||
$10 | 10 | 80 | $100 | $20 | ||
$10 | 11 | (A) | 8 | 88 | $110 | $22 |
$10 | 12 | (B) | (E) | 97 | (G) | (I) |
$10 | 13 | (C) | (F) | 107 | (H) | (J) |
$10 | 14 | (D) | 11 | 118 | $140 | $22 |
a. | $9 | |
b. | $10 | |
c. | $11 | |
d. | $12 | |
e. | $14 |
4 points
QUESTION 21
A perfectly competitive firm should increase its level of production as long as
a. | total revenue is less than total cost. | |
b. | the total revenue curve is rising. | |
c. | marginal revenue is greater than marginal cost. | |
d. | the marginal revenue curve is rising. |
Q7
Marginal cost is
Ā | a. |
total revenue divided by the quantity of output. |
Ā | b. |
total profit minus total costs. |
Ā | c. |
the change in total cost brought about by selling an additional unit of the good. |
Ā | d. |
the change in total revenue brought about by selling an additional unit of the good. |
Ā | e. |
the change in total revenue minus the change in total costs. |
4 points
Q8
[Table 1] The dollar amounts that go in blanks (A) and (B) are, respectively,
Table-1
(1) |
(2) |
(3) |
|
Quantity Sold |
Marginal Revenue |
$10 |
10 |
Ā |
$10 |
11 |
(A) |
$10 |
12 |
(B) |
$10 |
13 |
(C) |
$10 |
14 |
(D) |
Ā
Ā | a. |
$11 and $11. |
Ā | b. |
$10 and $10. |
Ā | c. |
$10 and $11. |
Ā | d. |
$11 and $12. |
4 points
Q9
[Table 1] The dollar amounts that go in blanks (C) and (D) are, respectively,
Table-1
(1) |
(2) |
(3) |
|
Quantity Sold |
Marginal Revenue |
$10 |
10 |
Ā |
$10 |
11 |
(A) |
$10 |
12 |
(B) |
$10 |
13 |
(C) |
$10 |
14 |
(D) |
Ā
Ā | a. |
$11 and $11. |
Ā | b. |
$10 and $10. |
Ā | c. |
$10 and $11. |
Ā | d. |
$11 and $12. |
4 points
Q10
[Table 1] The demand curve facing the firm represented by the information in this table is
Table-1
(1) |
(2) |
(3) |
|
Quantity Sold |
Marginal Revenue |
$10 |
10 |
Ā |
$10 |
11 |
(A) |
$10 |
12 |
(B) |
$10 |
13 |
(C) |
$10 |
14 |
(D) |
Ā
Ā | a. |
downward-sloping. |
Ā | b. |
upward-sloping. |
Ā | c. |
horizontal. |
Ā | d. |
vertical. |
4 points
Q11
[Table 2] The dollar amounts that go in blanks (E) is:
Table 2
-1 |
-2 |
-3 |
-4 |
-5 |
-6 |
-7 |
Ā |
Quantity Sold |
Marginal Revenue |
Marginal |
Total |
Total |
Profit |
Price |
Cost |
Cost |
Revenue |
Ā | ||
$10 |
10 |
Ā | Ā |
80 |
$100 |
$20 |
$10 |
11 |
(A) |
8 |
88 |
$110 |
$22 |
$10 |
12 |
(B) |
(E) |
97 |
(G) |
(I) |
$10 |
13 |
(C) |
(F) |
107 |
(H) |
(J) |
$10 |
14 |
(D) |
11 |
118 |
$140 |
$22 |
Ā | a. |
$8 |
Ā | b. |
$9 |
Ā | c. |
$10 |
Ā | d. |
$11 |
4 points
Q12
[Table 2] The dollar amounts that go in blanks (F) is:
Table 2
-1 |
-2 |
-3 |
-4 |
-5 |
-6 |
-7 |
Ā |
Quantity Sold |
Marginal Revenue |
Marginal |
Total |
Total |
Profit |
Price |
Cost |
Cost |
Revenue |
Ā | ||
$10 |
10 |
Ā | Ā |
80 |
$100 |
$20 |
$10 |
11 |
(A) |
8 |
88 |
$110 |
$22 |
$10 |
12 |
(B) |
(E) |
97 |
(G) |
(I) |
$10 |
13 |
(C) |
(F) |
107 |
(H) |
(J) |
$10 |
14 |
(D) |
11 |
118 |
$140 |
$22 |
Ā | a. |
$8 |
Ā | b. |
$9 |
Ā | c. |
$10 |
Ā | d. |
$11 |
The table below shows the marginal utility a customer would get by purchasing various quantities of A, B, and C. The product prices for A, B, and C is $3, $2, and $1 respectively. The consumer has $20 to spend on the three products.
Ā
Units of the product | Marginal utility of A | Marginal utility of B | Marginal utility of C |
First | 30 | 22 | 12 |
Second | 27 | 20 | 10 |
Third | 24 | 18 | 8 |
Fourth | 21 | 16 | 6 |
Fifth | 18 | 14 | 4 |
Sixth | 15 | 12 | 2 |
Which combination will the consumer purchase?
(a)ā5 units of A, 6 units of B, and 4 units of C.
(b)ā2 units of A, 5 units of B, and 4 units of C.
(c)ā3 units of A, 4 units of B, and 3 units of C.
(d)ā4 units of A, 3 units of B, and 2 units of C.