In the above figure, economies of scale are present up to an output level of :

In the above figure, economies of scale are present up to an output level of
 
  A) 5,000 pounds of coffee.
  B) 10,000 pounds of coffee.
  C) 13,000 pounds of coffee.
  D) 15,000 pounds of coffee.

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Ques. 2

The figure above shows two Lorenz curves, one before income redistribution and one after income redistribution. Lorenz curve B represents
 
  A) market income.
  B) money income.
  C) money income before taxes.
  D) income after taxes.

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Ques. 3

Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop. The acreage he previously devoted to tomatoes and pumpkins will be converted to field corn that is harvested by machines.
 
  Of the following, which could have led to the shift from labor intensive tomato production to field corn? A) The market price of tomatoes increased.
  B) Farm workers' reservation wage fell.
  C) The wage rate for farm workers increased.
  D) All of the answers are true.

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Ques. 4

Which of the following statements regarding a marginal-cost pricing rule for a natural monopoly is WRONG?
 
  A) It maximizes total surplus in a regulated industry.
  B) The firm produces the efficient quantity.
  C) The firm's price equals its marginal cost.
  D) The firm makes an economic profit.

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Ques. 5

In the figure above, at point A the consumer is willing to give up ________ pounds of pickles to get one additional pound of olives.
 
  A) 8
  B) 6
  C) 1 1/3
  D) 2

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Ques. 6

The U-pick berry market is perfectly competitive. Suppose that all U-pick blueberry farms have the same cost curves and all are making an economic profit. What happens as time passes? What is the long-run equilibrium outcome?
 
  What will be an ideal response?

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Ques. 7

In the long run, monopolistically competitive firms make zero economic profits because of government regulations.
 
  Indicate whether the statement is true or false