01:220:102 Study Guide - Midterm Guide: Diminishing Returns, Economic Surplus, Music Download

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Name: ___________________________________ date: _____________: suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. The price of a book is and the price of a pencil is sh. 50. Which of the following bundles of books and pencils lies on adam"s budget line: zero books and 20 pencils, 3 books and 5 pencils, 1 book and 40 pencils, 2 books and 20 pencils. 1: (figure: the indifference curve map ii) look at the figure the indifference curve map. Sara enjoys attending chicago cubs" baseball games and eating baby back rib dinners. The figure shows two of her indifference curves for cubs" tickets and baby back rib dinners. The marginal rate of substitution of apples in place of oranges is 2, the price of an apple is sh. 50, and the price of an orange is sh. 50. Marge with 10 additional utils and the last cookie provided her with 25 additional utils.

Related Questions

10-When marginal cost is greater than average total cost,
A. Average total cost must be increasing with output
B. Average variable cost must be decreasing with output
C. Average fixed cost must be increasing with output
D. Marginal cost must be increasing with output

11-If a firm's demand curve falls below its AVC curve, then the firm should
A. Shut down now
B. Operate in the short run but not the long run
C. Set price = marginal cost
D. Shutdown in the long-run

12- The demand curve facing a perfectly competitive firm is
A. Upward sloping
B. Perfectly inelastic
C. Downward sloping
D. Perfectly elastic

13-If the demand curve falls below the ATC curve but lies above AVC, then the firm should
A. Should shut down
B. Operate in the short run but not the long run
C. Set price = marginal cost
D. Operate in the short run and the long run

14-At the output where MC = ATC = P, the perfectly competitive firm
A. Should shutdown
B. Has no economic profit
C. Is not profit maximizing
D. Should raise output

ivorybee159

26) Consider a firm's short-run cost curves. If average total cost is increasing as output rises, then A) total fixed costs must be increasing B) average fixed costs must be increasing. C) average variable cost must be increasing. D) marginal cost must be below average total cost. E) average total cost is no longer equal to the sum of average variable cost and average fixed cost.

26) Consider a firm's short-run cost curves. If average total cost is increasing as output rises, then A) total fixed costs must be increasing B) average fixed costs must be increasing C) average variable cost must be increasing. D) marginal cost must be below average total cost. E) average total cost is no longer equal to the sum of average variable cost and average fixed cost.

01:220:102 Study Guide - Midterm Guide: Diminishing Returns, Economic Surplus, Music Download

01:220:102 Full Course Notes

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