ECON 1B03 Final: Exam Notes
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11 Nov 2011
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Suppose that the marginal product tripled while product price fell by one-half in the table below.
| Units of Resource | Total Product (Output) | Marginal Product (MP) | Product Price (in $) | Total Revenue | Marginal Revenue Product (MRP) in $ |
| 0 | 0 | 0 | 2 | 0 | 0 |
| 1 | 7 | 7 | 2 | 14 | 14 |
| 2 | 13 | 6 | 2 | 26 | 12 |
| 3 | 18 | 5 | 2 | 36 | 10 |
| 4 | 22 | 4 | 2 | 44 | 8 |
| 5 | 25 | 3 | 2 | 50 | 6 |
| 6 | 27 | 2 | 2 | 54 | 4 |
| 7 | 28 | 1 | 2 | 56 | 2 |
What would be the new values in the table?Ā
Table 14-12.
|
COSTS |
REVENUES |
|||||
|
Quantity |
Total |
Marginal |
Quantity |
|
Total |
Marginal |
|
0 |
$0 |
-- |
0 |
$80 |
Ā |
-- |
|
1 |
$50 |
Ā |
1 |
$80 |
Ā | Ā |
|
2 |
$102 |
Ā |
2 |
$80 |
Ā | Ā |
|
3 |
$157 |
Ā |
3 |
$80 |
Ā | Ā |
|
4 |
$217 |
Ā |
4 |
$80 |
Ā | Ā |
|
5 |
$285 |
Ā |
5 |
$80 |
Ā | Ā |
|
6 |
$365 |
Ā |
6 |
$80 |
Ā | Ā |
|
7 |
$462 |
Ā |
7 |
$80 |
Ā | Ā |
|
8 |
$582 |
Ā |
8 |
$80 |
Ā | Ā |
Ā
Refer to Table 14-12. At what quantity does Bill maximize profits?
a. 7
b. 8
c. 3
d. 6
Ā
Use the table below to answer the question for a purely competitive firm.
|
Output |
Total Revenue |
Total Cost |
|
0 |
$0 |
$50 |
|
1 |
40 |
74 |
|
2 |
80 |
94 |
|
3 |
120 |
117 |
|
4 |
160 |
142 |
|
5 |
200 |
172 |
Refer to the above table. The market price of the product in the short-run is?
a) $40
b) $80
c) $120
d) $60
