Indiana Bloomington Econ B 251 FINAL EXAM
(LATEST) MOST RECENT EXAM 2026|2027 ACTUAL
COMPLETE REAL EXAM QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED SUCEESS!!
NEWEST EXAM | JUST RELEASED!!
In the long run perfectly competitive firms earn zero economic
profit and positive accounting profit
Zero, positive
Perfectly competitive markets are --- because total surplus is
maximized and forms produce at the lowest possible --- cost.
Efficient, total surplus, average total
Sue quit her $40,000 per year job and opened a coffee shop that
she calls Top Brew. In the first year, Top Brew earned $200,000 in
revenue. For the same year, Top Brew paid $80,000 to employees in
wages, spent $40,000 on ingredients such as coffee beans, $15,000
rent for the building to house Top Brew. Sue also used $50,000 of
her personal savings to purchase equipment for Top Brew, which
she was earning $4,000 in interest each year. Assuming no
depreciation in the value of the equipment, Sue's economic profit
from Top Brew for the year is $
21,000
,the principal-agent problem suggests
principles and agents are more likely to have the same goals if the
agents pay is tied to satisfying the principles goals
In a perfectly competitive market there are --- buyers --- sellers
producing identical products. ----have full information and --- have
market power
many, many identical, buyers and sellers, neither buyers nor sellers
the short run us a period of time in which
the quantity used of at least one factor of production is fixed
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
The above table shows the total product of producing pizzas the
marginal product of the 4th worker is equal to --- pizzas
5
,Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
The above table shows the total product of producing pizzas.
Diminishing returns begins when the pizzeria hires the fourth worker
fourth
, Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
Patti's Pizza production function is shown in the above table. Patti
rents three ovens for $30 a day each and hires workers at a wage
rate of $20 a day. If Patti produces 18 pizzas per day, then her
average total cost is $
8.33
(LATEST) MOST RECENT EXAM 2026|2027 ACTUAL
COMPLETE REAL EXAM QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED SUCEESS!!
NEWEST EXAM | JUST RELEASED!!
In the long run perfectly competitive firms earn zero economic
profit and positive accounting profit
Zero, positive
Perfectly competitive markets are --- because total surplus is
maximized and forms produce at the lowest possible --- cost.
Efficient, total surplus, average total
Sue quit her $40,000 per year job and opened a coffee shop that
she calls Top Brew. In the first year, Top Brew earned $200,000 in
revenue. For the same year, Top Brew paid $80,000 to employees in
wages, spent $40,000 on ingredients such as coffee beans, $15,000
rent for the building to house Top Brew. Sue also used $50,000 of
her personal savings to purchase equipment for Top Brew, which
she was earning $4,000 in interest each year. Assuming no
depreciation in the value of the equipment, Sue's economic profit
from Top Brew for the year is $
21,000
,the principal-agent problem suggests
principles and agents are more likely to have the same goals if the
agents pay is tied to satisfying the principles goals
In a perfectly competitive market there are --- buyers --- sellers
producing identical products. ----have full information and --- have
market power
many, many identical, buyers and sellers, neither buyers nor sellers
the short run us a period of time in which
the quantity used of at least one factor of production is fixed
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
The above table shows the total product of producing pizzas the
marginal product of the 4th worker is equal to --- pizzas
5
,Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
The above table shows the total product of producing pizzas.
Diminishing returns begins when the pizzeria hires the fourth worker
fourth
, Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
Patti's Pizza production function is shown in the above table. Patti
rents three ovens for $30 a day each and hires workers at a wage
rate of $20 a day. If Patti produces 18 pizzas per day, then her
average total cost is $
8.33
