Econ Exam 2

Oligopoly firms may produce either standardized or differentiated products. True False

Which of the following is correct as it relates to cost curves?

The law of diminishing marginal utility states that

Answer the next question(s) on the basis of the following cost data: Refer to the above data. The marginal cost of producing the sixth unit of output is:

The long run is characterized by

Suppose that, when producing 10 units of output, a firm's AVC is $22, its AFC is $5, and its MC is $30. This

The law of diminishing marginal utility explains why

The theory of consumer behavior assumes that:

An industry comprised of four firms, each with about 25 percent of the total market for a product is an example of

The total output of a firm will be at a maximum where:

The basic characteristic of the short run is that

Firms seek to maximize:

Which of the following is not a characteristic of pure competition?

Refer to the above diagram. The vertical distance between ATC and AVC reflects:

Refer to the above data. In the long run the firm should use plant size "A" for:

Refer to the above information. The marginal cost of the third unit of output is

Refer to the above data. The value for X is

Refer to the above short-run production and cost data. In Figure B curve (3) is

Accounting profits equal total revenue minus

Refer to the above information. The average total cost of 3 units of output is:

When diseconomies of scale occur:

Refer to the above short-run production and cost data. The curves of Figures A and B suggest that:

Refer to the above data. The value for W is:

The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium?

A consumer who has a limited budget will maximize utility or satisfaction when the:

If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then:

The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question(s). Refer to the above information. The average fixed cost of 3 units of output is:

An industry comprised of a very large number of sellers producing a standardized product is known as:

Answer the next question(s) on the basis of the following information: Refer to the above information. Average total cost is:

Refer to the above data. The value for Y is:

The short run is characterized by:

The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is:

If total utility is increasing, marginal utility:

In the above diagram curves 1, 2, and 3 represent the:

As the firm in the above diagram expands from plant size #3 to plant size #5, it experiences:

Use the following data to answer the next question(s). The letters A, B, and C designate three successively larger plant sizes. Refer to the above data. In the long run the firm should use plant size "C" for:

Economies of scale are indicated by:

To maximize utility a consumer should allocate money income so that the:

The theory of consumer behavior assumes that consumers attempt to maximize:

A purely competitive seller is:

When a consumer shifts purchases from product X to product Y the marginal utility of:

Answer the next question(s) on the basis of the following cost data: Refer to the above data. The average total cost of producing 3 units of output is:

Answer the next question(s) on the basis of the following cost data: Refer to the above data. The average fixed cost of producing 3 units of output is:

The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question(s). Refer to the above information. The total cost of producing 3 units of output is:

Ben is exhausting his money income consuming products A and B in such quantities that MUa/Pa= 5 and MUb/Pb= 8. Ben should purchase:

Average fixed cost:

An industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product is an example of:

Refer to the above diagram. At output level Q total variable cost is:

Where total utility is at a maximum, marginal utility is:

Refer to the above diagram. At output level Q total cost is:

Economies and diseconomies of scale explain:

In the above figure, curves 1, 2, 3, and 4 represent the:

In which of the following industry structures is the entry of new firms the most difficult?

Marginal cost is the:

If MUa/Pa= 100/$35 = MUb/Pb= 300/? = MUc/Pc= 400/?, the prices of products b and c in consumer equilibrium:

Marginal product is:

If a firm decides to produce no output in the short run, its costs will be:

Refer to the above diagram. At output level Q total fixed cost is:

Suppose that MUx/Pxexceeds MUy/Py. To maximize utility the consumer who is spending all her money income should buy:

Suppose you have a limited money income and you are purchasing products A and B whose prices happen to be the same. To maximize your utility you should purchase A and B in such amounts that:

The basic difference between the short run and the long run is that:

Fixed cost is:

Refer to the above data. The value for Z is:

In the long run:

To economists, the main difference between the short run and the long run is that:

Answer the next question(s) on the basis of the following cost data: Refer to the above data. The total variable cost of producing 5 units is:

Economic profits are calculated by subtracting:

Refer to the above short-run production and cost data. In Figure A curve (1) is:

If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then:

If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:

Marginal product is:

The theory of consumer behavior assumes that:

Answer the next question(s) on the basis of the following cost data: Refer to the above data. The marginal cost of producing the sixth unit of output is:

Refer to the above diagram. At output level Q total variable cost is:

In the long run: