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WorksheetsIoM-Akt A
Total questions: 15
Worksheet time: 19mins
Assume that Matt spends his entire income on the purchase of two goods, X and Y. If his income and the prices of good X and Y all double, Matt will...
Double the purchase of goods X and Y
Buy more of good X and less of good Y
Buy less of good X and more of good Y
Buy the same amounts of goods X and Y
Blueberry muffins and coffee are sold as a combo in a perfectly competitive market. If there is a good harvest of blueberries and increase in tariff on imported coffee beans then which of the following is true?
Price of muffin and coffee combo will increase
Price of muffin and coffee combo will decrease
Price of muffin and coffee combo will remain the same
Price of muffin and coffee combo will depend on the relative change in price of blueberry and coffee beans
Consider the information below on short-run costs for a firm:
- The current quantity of outputis 20 units
- Marginal cost is $15, variabel cost is $14, average total cost is $16
- The market price is $15
- If the firm increases its output ATC decreases and marginal cost increases
What should the firm manager do about their output decision in the short run?
Continue to produce at 20 units
Produce more output as ATC decreases
Produce less output as MC increases
Shut down as they are making a loss
According to the law of diminishing marginal utility, which of the following is true?
Total satisfaction decreases as more units of a good are consumed
The additional satisfaction receive from consuming extra units of a good decreases as consumption of the good increases
The additional satisfaction receive from consuming extra units of a good decreases as consumption of the good decreases
The additional satisfaction receive from consuming extra units of a good increases as consumption of the good increases
A farmer grows wheat using two inputs: labor and land whose prices are constant. If she doubles her inputs, she finds that the quantity of wheat produced more than doubles. Therefore, it must be true that in this output range her long-run average total cost curve is?
Upward sloping
Downward sloping
Horizontal
Vertikal
Suppose that a firm begins to hire workers for a newly completed plant with a fixed amount of machinery. As the firm hires additional workers, one would expect the marginal product to...
Fall initially, but eventually rise
Rise consistently due to diminishing return
Rise initially, but eventually fall
Rise consistently due to economies of scale
In short run, which of the following costs must continuously decrease as output produced increases?
Total variable cost
Total fixed cost
Average fixed cost
Average variable cost
Within the range of market demand, which of the following is consistent with the conditions of a natural monopoly?
Long-run average total cost decreases as output increases
Long-run total cost decreases as output increases
Long-run average total cost remains constant as output increases
Marginal cost exceeds average cost
Roas Corporation produced 300 units of output but sold only 275 of the units it produced. The average cost of production for each unit of output produced was Rp100.000. each of the 275 unit sold was for a price of Rp95.000. total profit for Roas Corporation would be...
–Rp1.500.000
–Rp3.875.000
Rp26.125.000
Rp28.500.000
Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for $100 each. It costs Nicole $20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent, too). Nicole can work at a competing pottery factory for $40,000 per year. The economic profit at Nicole's pottery factory is...
$30.000
$40.000
$70.000
$80.000
The slope of budget constrain unequals the relative price of goods.
True
False
When the consumer likes both goods, all the indifference curves have a negative slope.
True
False
When a production function gets flatter, the marginal product is increasing
True
False
If total revenue is €100, explicit costs are €50, and implicit costs are €30, then accounting profit equals €50
True
False
A monopolist’s profit-maximizing level of output is below the level that
maximizes the sum of consumer and producer surplus.
True
False
