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Kean university – ECO 1020 Econ Mock Test 2 1)Marginal utility is the           2

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Kean university – ECO 1020

Econ Mock Test 2

1)Marginal utility is the

 

 

 

 

 

2. As a consumer consumes more and more of a product in a particular time period, eventually marginal utility

3. If a consumer receives 22 units of marginal utility for consuming the first can of soda, 20 units from consuming the second, and 15 from the third, the total utility of consuming the three units is
4. If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the third candy bar is
5. Total utility
6. If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of
7. The law of diminishing marginal utility states that
8. Consumers have to make tradeoffs in deciding what to consume because
9. Total utility is maximized in the consumption of two goods by what?
10.  the table below shows the relationship between the number of movies seen per month and the total utility received.

 

 

 

 

 

 

 

 

 

11.  the following table shows William's utility from consuming slices of cake and cans of sprite

 

 

 

12. The following table shows Madison’s utility from consuming popcorn and Coke. Suppose that Madison has income of $42.00, the price of popcorn is $6.00, and the price of Coke is $4.50. If Madison wants to max her utility, how much popcorn and Coke should she buy?

 

 

 

 

 

 

 

13. Look at chart online
14. Which of the following is a factor of production that generally is fixed in the short run?
15.  A characteristic of the long run is
16.  Which of the following is the best example of a short run adjustment?
17.  If a producer is not able to expand its plant capacity immediately, it is
18.  Which of the following is a fixed cost?
19.  Economic costs of production differ from accounting costs in that
20. Implicit costs can be defined as
21. Which of the following is an implicit cost of production?
22.  The explicit cost of production is also called
23.  The production functions shows
24.  The average total cost of production
25.  Which of the flowing statements is true?
26.  The marginal product of labor is defined as
27. if four workers can produce 18 chairs a day and five can produce 20 chairs a day, the marginal product of the fifth worker is
28. As a firm hires more labor in the short run, the
29.  The marginal product of the 3rd worker is

 

 

 

30.  Look at diagram above 7^th worker
31. Diagram above. The average product of the 4^th worker.
32.  Same diagram. Diminishing marginal productivity sets in after?
33. Diminishing the marginal product of labor occurs when adding another unit of labor
34. Fancy Footwear manufactures shoes.  Figure 1 shows Fancy Footwear's marginal product of labor and average product of labor curves in the short run. Which of the following statements correctly describes the curve in the figure?

 

35.  Same diagram. For what quantity of labor does production display diminishing returns?
36.    

Quantity of Workers	Quantity of Boxes	Marginal Product of Labor	Average Product of Labor
0	0	-----	-----
1	50
2	200
3	240
4	264
5	284

 

         

37.  If marginal product is greater than average product, then
38.  Marginal cost is equal to the
39.  In the short run, if marginal product is at its maximum, then
40.  Which of the following equations is correct?

  Table 8-3

Quantity of Lanterns	Fixed Cost (dollars)	Variable Cost (dollars)	Total Cost (dollars)	Average Total Cost (dollars)
75	200	170	370	4.93
80	200	230	430	5.36
90	200			7.67
100	200	810
115	200			11.8
117	200	1264	1464	12.5
120	200	1480

 

41. What is the total variable cost of production when the firm produces 115 lamps
42.  8-3, What is the average total cost of production when the firm produces 120 lanterns?
43.   8-3 What is the average variable cost per unit of production when the firm produces 90 lanterns?
44.  8-3 What is the marginal cost per unit of production when the firm produces 100 lanterns?
45.  Refer to the diagram to the right. Identify the curves in the diagram
46.  Refer to the diagram to the right. The vertical difference between curves F and G measures
47.  The figure to the right shows the cost structure for a firm, when the output level is 100 units average fixed cost is
48.  The figure to the right shows the cost structure for a firm, when output levels is 100, what is the total cost of production
49. The figure to the right shows the cost structure for a firm, If output is 100 units what is the fixed cost of production?
50.  Which of the following is true at the output level where average total cost is at its minimum?
51.  The long run average cost curve shows?
52. In the long run,
53.  The price of a seller’s product in perfect competition is determined by
54. Both buyers and sellers are price takers in a perfectly competitive market because
55. Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21. Which of the following will happen?
56. An individual seller in perfect competition will not sell at a price lower than the market price because
57. The demand for an individual seller's product in perfect competition is:
58. In perfect competition 
59. Refer to the diagram to the right. If the firm is producing 700 units,
60. Refer to the diagram to the right. If the firm is producing 700 units,  what is the amount of its profit or loss?
61. Refer to the diagram to the right. If the firm is producing 200 units
62.  If the firm is producing 500 units
63.  If the firm is producing 500 units, what is the amount of its profit or loss?
64. If the firm is charging a price of $12 per unit
65.  If, for the last unit of a good produced by a perfectly competitive firm, MR>MC, then in producing it, the firm
66.  Refer to the diagram to the right. What is the amount of profit if the firm produced Q2 units?
67.  Refer to the diagram to the right. Suppose the firm is currently producing Q2 units. What happens if it expands output to Q3 units?
68. Refer to the diagram to the right. The firms break even at an output level of
69.  Refer to the diagram to the right. What happens if the firm produces more than Q4 units?
70. to maximize profits a perfectly competitive firm should
71. For a perfect competitive firm average revenue is equal to
72. If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
73.  For a firm in a perfectly competitive market, price is
74.  Marginal revenue is
75.  The marginal revenue curve for a perfectly competitive firm
76. Producing where marginal revenue equals marginal cost is equivalent to produce where
77.  A perfectly competitive firm's marginal revenue
78.  If the market price is $30, the firm’s profit maximizing output level is
79. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost?
80.  What is the amount of its total fixed cost
81.  If the market price is $30, and the firm is producing output, what is the amount of the firms profit or loss?
82.  If the market price is $30, should the firm represented in the diagram continue to stay in business?
83.  A perfectly competitive firms earns a profit when price is
84. Refer to the diagram to the right which shows cost and demand curves facing a typical firm in a constant-cost perfectly competitive industry. If the market price is $20, what is the firm’s profit maximizing output?

 

 

 

85.  If the market price is $20 what is the amount of the firms profit?
86.  If the market price is $20 what is the average profit at the profit maximizing quantity?
87.  The firm’s manager suggests that the firm’s goal should be to maximize average profit. In that case, what is the output level and what is the average profit that will achieve the manger’s goal?
88.  The firm’s manager suggests that the firm’s goal should be to maximize average profit. If the firm does this, what is the amount of profit it will earn?
89. What is the amount of the firm’s fixed cost of production?
90. What is the minimum price the firm requires to produce output?
91. Profit is the difference between
92. A firm will break even when
93. A firm will make a profit when
94. Refer to the diagram to the right which shows cost and demand curves facing a profit- maximizing perfectly competitive firm. At price P1, the firm would produce.
95.  At price p1 the firm would produce
96.  At price p2, the firm would produce
97. At price p2, the firm would
98.  At price P3, the firm would produce
99. At price P3, the firm would
100. At price P4, the firm would produce
101. At price p4, the firm would
102. Identify the firm’s short run supply curve