# econ exam #2 example #63411

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In the above diagram the range of diminishing marginal returns is:
Q1Q3
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In the above diagram, total product will be at a maximum at:
Q3 units of labor
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Refer to the above diagram. At output level Q total variable cost is:
0BEQ
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Refer to the above diagram. At output level Q total fixed cost is:
BCDE.
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Refer to the above diagram. At output level Q total cost is:
0BEQ plus BCDE
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Refer to the above diagram. At output level Q average fixed cost
is measured by both QF and ED
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Refer to the above diagram. At output level Q
marginal product is falling
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Refer to the above diagram. The vertical distance between ATC and AVC reflects:
the average fixed cost at each level of output
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Refer to the above information. Average fixed cost is:
TFC ------ Q
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Refer to the above information. Average total cost is
TFC + TVC -------------- Q
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Refer to the above information. Marginal cost is:
change in TFC -------------------- change in Q
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Refer to the above diagram, where variable inputs of labor are being added to a constant amount of property resources. The total output of this firm will cease to expand
if a labor force in excess of Q3 is employed.
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Refer to the above diagram, where variable inputs of labor are being added to a constant amount of property resources. Marginal cost will be at a minimum for this firm when it is hiring
Q1 workers
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In the above figure, curves 1, 2, 3, and 4 represent the
MC, ATC, AVC, and AFC curves respectively.
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In the above diagram curves 1, 2, and 3 represent:
total fixed cost, total variable cost, and total cost respectively.
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Refer to the above diagram. This firm's average fixed costs are:
the vertical distance between AVC and ATC.
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Refer to the above diagram. If labor is the only variable input, the marginal product of labor is at a:
maximum at point a
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Refer to the above diagram. If labor is the only variable input, the average product of labor is at a:
maximum at point b
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Refer to the above diagram. The profit-maximizing level of output for this firm
cannot be determined from the information given
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The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. The shape of each individual curve reflects
increasing returns, followed by diminishing returns
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As the firm in the above diagram expands from plant size #1 to plant size #3, it experiences:
economies of scale
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As the firm in the above diagram expands from plant size #3 to plant size #5, it experiences:
diseconomies of scale
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Refer to the above short-run data. The profit-maximizing output for this firm is:
320 units
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Refer to the above short-run data. Which of the following is correct?
Any level of output between 100 and 440 units will yield an economic profit
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Refer to the above diagram for a purely competitive producer. The lowest price at which the firm should produce (as opposed to shutting down) is
P2
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Refer to the above diagram for a purely competitive producer. The firm will produce at a loss at all prices:
between P2 and P3
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Refer to the above diagram for a purely competitive producer. If product price is P3:
economic profits will be zero.
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Refer to the above diagram for a purely competitive producer. The firm's short-run supply curve is:
the bcd segment and above on the MC curve
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Refer to the above diagram. To maximize profit or minimize losses this firm will produce
E units at price A.
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Refer to the above diagram. At the profit-maximizing output, total revenue will be:
0AHE
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Refer to the above diagram. At the profit-maximizing output, total fixed cost is equal to:
BCFG.
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Refer to the above diagram. At the profit-maximizing output, total variable cost is equal to:
0CFE
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Refer to the above diagram. At the profit-maximizing output, the firm will realize:
an economic profit of ABGH
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Refer to the above data. If the market price for the firm's product is \$12, the competitive firm will produce:
zero units at a loss of \$100.
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Refer to the above data. If the market price for the firm's product is \$32, the competitive firm will produce:
8 units at an economic profit of \$16
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Refer to the above data. If the market price for the firm's product is \$28, the competitive firm will:
produce 7 units at a loss of \$14.00
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Refer to the above diagram. The profit-maximizing output:
is n
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Refer to the above diagram. At the profit-maximizing output, total profit is:
efbc
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Refer to the above diagram. The short-run supply curve for this firm is the
segment of the MC curve lying to the right of output level h.
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Refer to the above diagram. This firm is selling its product in a(n):
purely competitive market
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Refer to the above diagram. At P2, this firm will:
produce 44 units and earn only a normal profit
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Refer to the above diagram. At P1, this firm will produce:
47 units and realize an economic profit.
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Refer to the above diagram. At P4, this firm will
shut down in the short run
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Refer to the above diagram. At P3, this firm will:
produce 40 units and incur a loss.
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Refer to the above diagrams which pertain to a purely competitive firm producing output q and the industry in which it operates. Which of the following is correct
The diagrams portray short-run equilibrium, but not long-run equilibrium
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Refer to the above diagrams which pertain to a purely competitive firm producing output q and the industry in which it operates. In the long run we should expect
firms to leave the industry, market supply to fall, and product price to rise.
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Refer to the above diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. The predicted long-run adjustments in this industry might be offset by
a technological improvement in production methods
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Refer to the above diagram showing the average total cost curve for a purely competitive firm. At the long-run equilibrium level of output, this firm's total revenue:
400
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Refer to the above diagram showing the average total cost curve for a purely competitive firm. At the long-run equilibrium level of output, this firm's total cost:
not 10
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Refer to the above diagram. Line (1) reflects the long-run supply curve for
an increasing-cost industry
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Refer to the above diagram. Line (2) reflects the long-run supply curve for
a constant-cost industry
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Refer to the above diagram. Line (1) reflects a situation where resource prices
increase as industry output expands
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Refer to the above diagram. Line (2) reflects a situation where resource prices
remain constant as industry output expands
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The above diagram portrays:
the equilibrium position of a competitive firm in the long run.
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Refer to the above diagram. If this competitive firm produces output Q, it will
earn a normal profit
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Refer to the above diagram. By producing output level Q
both productive and allocative efficiency are achieved
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Refer to the above diagram. At output level Q1:
neither productive nor allocative efficiency are achieved
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Refer to the above diagram. At output level Q1
resources are underallocated to this product and productive efficiency is not realized
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Refer to the above diagram. At output level Q2
resources are overallocated to this product and productive efficiency is not realized
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Refer to the above diagram. If price is reduced from P1 to P2, total revenue will
increase by C minus A.
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Refer to the above diagram. The quantitative difference between areas A and C for reducing the price from P1 to P2 measures
marginal revenue.
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This firm is selling in
an imperfectly competitive market
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Refer to the above diagram. Demand is relatively elastic:
in the P2P4 price range
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Refer to the above diagram. Demand is relatively inelastic
at any price below P2
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Refer to the above diagram. If this somehow was a costless product (that is, the total cost of any level of output was zero), the firm would maximize profits by:
producing Q2 units and charging a price of P2
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The above diagram indicates that the marginal revenue of the sixth unit of output is
not 4
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Which of the above diagrams correctly portray a nondiscriminating pure monopolist's demand (D) and marginal revenue (MR) curves
B
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Which of the above diagrams correctly portray the demand (D) and marginal revenue (MR) curves of a pure monopolist that is able to price discriminate by charging each customer their maximum willingness to pay?
A
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Which of the above diagrams correctly portray the demand (D) and marginal revenue (MR) curves of a purely competitive seller
C
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Refer to the above data for a nondiscriminating monopolist. This firm will maximize its profit by producing
4 units
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Refer to the above data for a nondiscriminating monopolist. At its profit-maximizing output, this firm will be operating in the
elastic portion of its demand curve.
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Refer to the above data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost by ____ and its average total cost by
\$30; \$20.50
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Refer to the above data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's total costs will be
198
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Refer to the above data. At its profit-maximizing output, this firm's total revenue will be
280
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Refer to the above data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's total profit will be
82
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Refer to the above diagram. To maximize profits or minimize losses this firm should produce
E units and charge price A
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Refer to the above diagram. At the profit-maximizing level of output, total revenue will be:
0AJE
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Refer to the above diagram. At the profit-maximizing level of output, total cost will be:
0BHE
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Refer to the above diagram. At the profit-maximizing level of output, the firm will realize:
an economic profit of ABHJ.
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Refer to the above diagram. If this industry is purely competitive, the profit-maximizing price and quantity will be
P2 and Q2
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Refer to the above diagram. If this industry is comprised of only one seller, the profit-maximizing price and quantity will be
P3 and Q3
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Refer to the above diagrams. Diagram (A) represents
equilibrium price and quantity in a purely competitive industry
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Refer to the above diagrams. In diagram (B) the profit-maximizing quantity is:
g and the profit-maximizing price is d
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Refer to the above diagrams. With the industry structure represented by diagram
(A) there will be only a normal profit in the long run, while in (B) an economic profit can persist.
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Refer to the above diagrams. With the industry structure represented by diagram:
(B) output will be less than in diagram (A).
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Refer to the above diagrams. The price will be _______ and the quantity will be _______ with the industry structure represented by diagram (B) compared to the one represented in (A).
higher; lower
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Refer to the figure above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf; Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays, and the right graph the weekend demand, this profit-maximizing golf course should:
charge \$7 for each round on weekdays, and \$10 during the weekend
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Refer to the figure above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf; Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays, and the right graph the weekend demand, this profit-maximizing golf course will earn how much economic profit over the course of a full seven-day week?
4200
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Refer to the above diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profit-maximizing price will be:
16
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Refer to the above diagram for a monopolistically competitive firm in short-run equilibrium. The profit-maximizing output for this firm will be
160
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Refer to the above diagram for a monopolistically competitive firm in short-run equilibrium. This firm will realize an economic:
profit of \$480
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Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by:
diagram c only
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Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by
diagram b only
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Refer to the above diagrams, which pertain to monopolistically competitive firms. Long-run equilibrium is shown by
diagram a only
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Refer to the above diagram for a monopolistically competitive firm. Long-run equilibrium price will be
A
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Refer to the above diagram for a monopolistically competitive firm. Long-run equilibrium output will be
D
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Refer to the above diagram for a monopolistically competitive firm. If more firms were to enter the industry and product differentiation were to weaken, then:
the demand curve would become more elastic
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Refer to the above diagram for a monopolistically competitive producer. The firm is:
realizing a normal profit in the long run.
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Refer to the above diagram for a monopolistically competitive producer. This firm is experiencing
excess capacity of DE
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Refer to the above diagram for a monopolistically competitive producer. If this firm were to realize productive efficiency, it would