The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?
A) 1
B) 2
C) 3
D) More information is needed to determine the answer.
Ques. 2In the above figure, below what minimum price will a perfectly competitive firm shut down rather than produce?
A) for any price less than 16 per unit
B) for any price less than 12 per unit
C) for any price less than 8 per unit
D) for any price less than 4 per unit
Ques. 3Public goods are
A) under provided by the private market because the marginal cost of production is too high.
B) under provided by the private market because the marginal benefits of consumption are too low.
C) under provided by the private market because people's willingness to pay for the good is less than the marginal benefit of the good.
D) over provided by the private market because the marginal benefits of consumption are too high.
Ques. 4The table above gives Jane's total utility from magazines and CDs. The price of a magazine is 4 and the price of a CD is 10.
If Jane's total budget for magazines and CDs is 70.00 per week, what is her total utility at her utility maximizing consumer equilibrium?
A) 2480 units
B) 1870 units
C) 210 units
D) 30 units
Ques. 5A high four-firm concentration ratio implies
A) an absence of product differentiation.
B) a presence of product differentiation.
C) an absence of competition.
D) a presence of competition.
Ques. 6The figure above shows the market for umbrellas in Sunville. Suppose the quantity of umbrellas currently traded in Sunville is 199 per day. If one more umbrella is sold, the total surplus in Sunville will
A) decrease by 26.67.
B) increase by 26.67.
C) increase by 50.00.
D) not change.
Ques. 7A country that has a comparative advantage in producing capital goods will ________ a country that has a comparative advantage in consumption goods.
A) reap all of the gains from trade when it trades with
B) grow slower than
C) reap fewer of the gains from trade when it trades with
D) specialize in producing capital goods and trade with
Ques. 8A fall in the price of X from 12 to 8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?
A) 0.5
B) -0.5
C) 2
D) -2
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