CAS EC 101 Study Guide - Midterm Guide: Average Variable Cost, Sunk Costs, Marginal Cost

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: All

Document Summary

Identify the letter of the choice that best completes the statement or answers the question. Each question is worth an equal number of points. Be sure to answer questions on the bubble answer sheet provided. Any questions answered on the test question sheets will not be counted. Please write your name on the test sheet and on the bubble sheet. Very important: write 1 in the space provided on the bubble sheet to indicate the version of your exam. Both the test sheet and the bubble sheet must be turned in at the end of the exam. Suppose the prevailing price is p1 and the firm is currently producing its loss-minimizing quantity. Identify the area that represents the loss: p3cap0, p3cbp1, p2 dep1, 0p1 bq1. Figure 12-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market: refer to figure 12-4.