The above table shows the short-run total product schedule for the campus book store. Which employee has the highest marginal product (MP)?
A) the 10th employee
B) the 5th employee
C) the 4th employee
D) the 1st employee
Ques. 2Giving managers an ownership stake in a company is an example of
A) a command system.
B) an incentive system.
C) a system that encourages managers to become agents that monitor their principals.
D) economies of scope.
Ques. 3A consumer has maximized his or her utility by consuming
A) at the midpoint of the budget constraint line.
B) at the midpoint of the demand curve.
C) so that the total utility of all goods consumed is the same.
D) so that the ratio of marginal utility to price is the same for all goods consumed.
Ques. 4Game theory is applicable to oligopoly behavior because oligopolists
A) use strategic behavior.
B) ignore rival firms.
C) are price takers.
D) can only be profitable if they collude.
Ques. 5If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?
A) The equilibrium price rises and the equilibrium quantity increases.
B) The equilibrium price falls and the equilibrium quantity decreases.
C) The equilibrium price rises and the equilibrium quantity decreases.
D) The equilibrium price falls and the equilibrium quantity increases.
Ques. 6At the competitive market outcome in the above figure, the
A) producer surplus is equal to 480 million.
B) total producer surplus from turkey sales is zero.
C) sum of consumer and producer surpluses from turkey is 640 million.
D) All of the above answers are correct.
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