Florida international university ECON 1)If the absolute value of the price elasticity of demand for aspirin equals 0

Florida international university

ECON

1)If the absolute value of the price elasticity of demand for aspirin equals 0.8, then:

2. The minimum efficient scale is:
3. Refer to Figure 11.1 for the questions below. At price P1, the firm in figure 11.1 would produce:
4. If the market price is $25, the average revenue of selling five units is:
5. Along a downward sloping, linear demand curve, total revenue is the greatest:
6. Refer to Figure 11.1 for the questions below. At price P4, the firm in figure 11.1 would:
7. Suppose that a firm’s production function is given by Y=24 K N-N^2, where K is the level of capital and N is the number of laborers the firm employs. For the given production function, the marginal products are MPN=24 K-2N and MPK=24N. The rental rate of capital the firm pays is $45 and the wage rate is $15. Suppose the firm produces 1.296 units of output. What is the cost-minimizing level of capital (K) that firm should buy in order to minimize costs?
8. Refer to figure 6-1. The section of the demand curve labeled “A” represents:
9. If a perfectly competitive firm’s price is less than average variable cost, the firm:
10. Total revenue equals:

11. If a firm raised its price and discovered that its total revenue fell, then the demand for its product is:
12. Suppose that a firm’s production function is given by Y=24 K N-N^2, where K is the level of capital and N is the number of laborers the firm employs. For the given production function, the marginal products are MPN=24 K-2N and MPK=24N. The rental rate of capital the firm pays is $45 and the wage rate is $15. Suppose the firm produces 1.296 units of output. What is the firm’s minimum total cost of production?
13. Refer to Figure 12-10. The total cost at the profit-maximizing output level equals:
14. If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm’s total variable cost at that level of output is:
15. A linear downward sloping demand curve has price elasticities (in absolute values) that:
16. If a perfectly competitive firm’s price is equal to average total cost, the firm is:
17. Refer to Figure 12-10. At the profit-maximizing output level, the firm earns:
18. The demand for each seller’s product in perfect competition is horizontal at the market price because:
19. Refer to Figure 12-10. Total revenue at the profit-maximizing level of output is:
20. On an isoquant/isocost graph the least cost combination of producing a given output is:
21. A perfectly competitive firm’s supply curve is:
22. If a firm doubles all its inputs in the long run and it finds its average cost of production has decreased, then it has:
23. 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:
24. If the amount of labor being used has a marginal product of 12 units of output per worker at a wage rate of $6 per worker and the current capital amount being used has a marginal product of 20 units per machine, then for this to be a least cost combination of inputs the cost of capital must be:
25. Refer to Figure 12-10. The firm’s short-run supply curve is its:
26. A perfectly elastic demand curve is:
27. An isoquant shows:
28. A horizontal demand curve is:
29. Which of the following explains why a firm would be interested in knowing the price elasticity of demand for a good that sells?
30. Refer to table 6-1. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price is $35. You consider lowering the price to $25 and believe this will increase the quantity sold to 50 books per day. Compute the price elasticity of demand using the mid-point formula and these date. Select the correct implication from your work.

31. If a good has a negative income elasticity of demand, this indicates that the good is:
32. An isocost line shows:
33. Florida International University (FIU) is considering increasing its tuition to raise revenue. If FIU believes that raising tuition will increase revenue:
34. Carrie Bradshaw claims that when it comes to buying shoes, “price is no object”. If this is true, then her demand for shoes is”
35. If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm’s average variable cost at that level of output is:
36. If the cross-price elasticity of demand between beer and pizza is -0.31, then beer and pizza are:
37. A characteristic of the long run is:
38. Suppose that a firm’s production function is given by Y=24 K N-N^2, where K is the level of capital and N is the number of laborers the firm employs. For the given production function, the marginal products are MPN=24 K-2N and MPK=24N. The rental rate of capital the firm pays is $45 and the wage rate is $15. Suppose that the firm produces 1.296 units of output. What is the cost-minimizing level of labor (N) that the firm should hire in order to minimize costs?