ECON 101 Midterm: ECON101 Term Test 4 2009 Spring Solutions
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Choose the single best answer for each question. In 2008, lawnman"s accounting profit was: ,750,000 and its economic profit was ,550,000, ,000 and its economic profit was ,050,000. ,200,000 and its economic profit was ,000: none of the above, on a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires. When he increases employment to 3 workers, holding other inputs fixed, he is able to produce 4,400 bushels of wheat. If the farmer increased employment to 4 workers, again holding other inputs fixed, output would be: 5,600 bushels of wheat, 5,400 bushels of wheat, 5,200 bushels of wheat. Any of the above would be consistent with positive but diminishing marginal product: a firm has total fixed costs of ,000 per year. per unit at an output level of 10,000 units/year. At that level output, the firm"s average total cost is: /unit.
