Q7
Marginal cost is
a.
total revenue divided by the quantity of output.
b.
total profit minus total costs.
c.
the change in total cost brought about by selling an additional unit of the good.
d.
the change in total revenue brought about by selling an additional unit of the good.
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)
Price
Quantity Sold
Marginal Revenue
$10
10
$10
11
(A)
$10
12
(B)
$10
13
(C)
$10
14
(D)
a.
$11 and $11.
b.
$10 and $10.
c.
$10 and $11.
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)
Price
Quantity Sold
Marginal Revenue
$10
10
$10
11
(A)
$10
12
(B)
$10
13
(C)
$10
14
(D)
a.
$11 and $11.
b.
$10 and $10.
c.
$10 and $11.
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)
Price
Quantity Sold
Marginal Revenue
$10
10
$10
11
(A)
$10
12
(B)
$10
13
(C)
$10
14
(D)
a.
downward-sloping.
b.
upward-sloping.
c.
horizontal.
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
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.
$8
b.
$9
c.
$10
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
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.
$8
b.
$9
c.
$10
d.
$11
Q7
Marginal cost is
| a. |
total revenue divided by the quantity of output. |
|
| b. |
total profit minus total costs. |
|
| c. |
the change in total cost brought about by selling an additional unit of the good. |
|
| d. |
the change in total revenue brought about by selling an additional unit of the good. |
|
| 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 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
$11 and $11. |
|
| b. |
$10 and $10. |
|
| c. |
$10 and $11. |
|
| 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 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
$11 and $11. |
|
| b. |
$10 and $10. |
|
| c. |
$10 and $11. |
|
| 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 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
downward-sloping. |
|
| b. |
upward-sloping. |
|
| c. |
horizontal. |
|
| 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 |
|
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. |
$8 |
|
| b. |
$9 |
|
| c. |
$10 |
|
| 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 |
|
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. |
$8 |
|
| b. |
$9 |
|
| c. |
$10 |
|
| d. |
$11 |
Related textbook solutions
Related questions
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. |
| price | Quantity sold | Marginal Revenue |
| 12 | 100 | |
| 12 | 101 | (A) |
| 12 | 102 | (B) |
| 12 | 103 | (C) |
| 12 | 104 | (D) |
13. Refer to Exhibit 23-1. The dollar amounts that go in blanks (A) and (B) are, respectively,
|
a. |
$1 and $12. |
|
b. |
$12 and $12. |
|
c. |
$8.42 and $8.50. |
|
d. |
$12 and $6. |
14. Refer to Exhibit 23-1. The dollar amounts that go in blanks (C) and (D) are, respectively,
|
a. |
$1 and $12. |
|
b. |
$12 and $12. |
|
c. |
$8.58 and $8.67. |
|
d. |
$4 and $3. |
15. Refer to Exhibit 23-1. The data in this table are relevant to a perfectly competitive firm because of
|
a. |
its total revenue is different at different levels of quantities sold. |
|
b. |
its total revenue is the same at all levels of quantities sold. |
|
c. |
it doesn't have to lower the price to sell additional units of the product. |
|
d. |
marginal revenue is greater than the price. |
16. Refer to Exhibit 23-1. The firm's demand curve represented by the information in this table is
|
a. |
downward-sloping. |
|
b. |
upward-sloping. |
|
c. |
horizontal. |
|
d. |
vertical. |
17. Refer to Exhibit 23-1. The marginal revenue curve represented by the information in this table is
|
a. |
downward-sloping. |
|
b. |
upward-sloping. |
|
c. |
horizontal. |
|
d. |
vertical. |
