The above table gives some of the costs of the Delicious Pie Company. What is the average variable cost of producing 300 pies?
A) 1,800
B) 6
C) 5
D) More information is needed to calculate the average variable cost.
Ques. 2Competitive markets with no external costs or benefits and no government price ceilings, floors, taxes or subsidies ________ efficient. According to the It's not fair if the rules aren't fair idea of fairness, competitive markets ________ fair
A) are; are
B) are; are not
C) are not; are
D) are not; are not
Ques. 3In the above figure, CBL is the cost of breaking the law. If it is illegal to buy, but not illegal to sell, then the price per unit will be
A) 500.
B) 400.
C) 300.
D) 200.
Ques. 4Keeping in mind the Coase theorem, in the figure above, if the residents of the town own the lake, how much do they charge the factories to dump waste?
A) 30 per ton of pesticide produced
B) 40 per ton of pesticide produced
C) 20 per ton of pesticide produced
D) Nothing
Ques. 5If the elasticity of supply of a good is zero, then its
A) supply curve is vertical.
B) supply curve is horizontal.
C) demand curve must be vertical.
D) supply curve is positively sloped.
Ques. 6Except for perfect substitutes or perfect complements, indifference curves
A) are straight lines with a positive slope.
B) slope upward to the right.
C) are bowed in toward the origin.
D) are bowed out away from the origin.
Ques. 7George is considering investing in a frozen yogurt store. If the store does well he will make 20,0000, but if the store does poorly he will make only 10,000. There is a 50 percent chance of each outcome.
His utility of wealth schedule is in the above table. The expected utility of this investment is A) 115.
B) 140.
C) 165.
D) 180.
Ques. 8The official settlements account records the change in official U.S. reserves.
Indicate whether the statement is true or false
Ques. 9The cookie industry in Eatsweetland consists of 15 firms. The industry sales are 80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of 3 million each. The U.S.
Department of Justice would classify the market for cookies in Eatsweetland as A) competitive.
B) uncompetitive.
C) moderately competitive.
D) monopolistic.
Ques. 10In the long run, a firm in a monopolistically competitive industry produces where its marginal cost
A) is less than its average cost.
B) equals its average cost.
C) exceeds its average cost.
D) equals its price.
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