The table above shows Tom's total utility from milkshakes and sodas. What is the marginal utility of the eighth soda?
A) 32 units
B) 20 units
C) 10 units
D) 8 units
Ques. 2The figure above shows Ilene's budget line. The price of a can of cat food is 2. Ilene's income per week is
A) 10.
B) 40.
C) 56.
D) 160.
Ques. 3If a good has an external cost, then the marginal private cost curve
A) lies below the marginal social cost curve.
B) lies above the marginal social cost curve.
C) is negative.
D) is the same as the marginal external cost curve.
Ques. 4Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is 4, what is the value of marginal product of the 4th worker?
A) 240
B) 70
C) 10
D) 40
Ques. 5Graphically we can illustrate a firm with price setting ability by drawing its demand curve as ________.
A) downward sloping
B) upward sloping
C) horizontal
D) vertical
Ques. 6The maximum total economic profit that can be made by colluding duopolists
A) is less than the economic profit made by a monopolist.
B) equals the economic profit made by a monopolist.
C) exceeds the economic profit made by a monopolist.
D) bears no necessary relation to the economic profit made by a monopolist.
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