BMAL 590 WEEK 6 MICROECONOMICS
To maximize profit, the firm should set output at the level where blank_______. -
ANSWERS-marginal revenue is equal to marginal cost
A firm should build an additional distribution center if blank_______. - ANSWERS-
the marginal revenue of building the distribution center is larger than the
marginal cost of building it
Typically, a production functionblank_________. - ANSWERS-represents a
technical relationship between the factors of production and the output
Leontief treats capital (k) and Labor(L) - ANSWERS-as perfect compliments
The Leontief function also assumes that; capital (K) and Labor (L) - ANSWERS-
cannot be substituted
Demand curve - ANSWERS-The demand curve shows how price affects quantity
demanded, other things being equal
Other things☝ - ANSWERS-Non price determinants of demand things that
determine buyers demand for a good other than the goods price
, Changes in the demand curve - ANSWERS-shifts to the left or to the right
Demand Curve Shifters - ANSWERS-Increase in the number of buyers , income
shift curves to the right
Decrease number of buyers - ANSWERS-Shifts curve to the left
People respond to incentives blank_______. - ANSWERS-by calculating their
individual costs and benefits and determining which is greater
After much consideration, you have chosen Cancun over Ft. Lauderdale as your
Spring Break destination this year. However, Spring Break is still months away,
and you may reverse this decision. Which of the following events would prompt
you to reverse this decision? - ANSWERS-The marginal cost of going to Ft.
Lauderdale decreases.
A tradeoff exists between a clean environment and a higher level of income in
that blank_______. - ANSWERS-laws that reduce pollution raise costs of
production and reduce incomes
An incentive ______. - ANSWERS-could be either a reward or a penalty
Bill is restoring a car and has already spent $4000 on the restoration. He expects
to be able to sell the car for $5800. Bill discovers that he needs to do an additional
$2400 of work to make the car worth $5800 to potential buyers. He could also sell
To maximize profit, the firm should set output at the level where blank_______. -
ANSWERS-marginal revenue is equal to marginal cost
A firm should build an additional distribution center if blank_______. - ANSWERS-
the marginal revenue of building the distribution center is larger than the
marginal cost of building it
Typically, a production functionblank_________. - ANSWERS-represents a
technical relationship between the factors of production and the output
Leontief treats capital (k) and Labor(L) - ANSWERS-as perfect compliments
The Leontief function also assumes that; capital (K) and Labor (L) - ANSWERS-
cannot be substituted
Demand curve - ANSWERS-The demand curve shows how price affects quantity
demanded, other things being equal
Other things☝ - ANSWERS-Non price determinants of demand things that
determine buyers demand for a good other than the goods price
, Changes in the demand curve - ANSWERS-shifts to the left or to the right
Demand Curve Shifters - ANSWERS-Increase in the number of buyers , income
shift curves to the right
Decrease number of buyers - ANSWERS-Shifts curve to the left
People respond to incentives blank_______. - ANSWERS-by calculating their
individual costs and benefits and determining which is greater
After much consideration, you have chosen Cancun over Ft. Lauderdale as your
Spring Break destination this year. However, Spring Break is still months away,
and you may reverse this decision. Which of the following events would prompt
you to reverse this decision? - ANSWERS-The marginal cost of going to Ft.
Lauderdale decreases.
A tradeoff exists between a clean environment and a higher level of income in
that blank_______. - ANSWERS-laws that reduce pollution raise costs of
production and reduce incomes
An incentive ______. - ANSWERS-could be either a reward or a penalty
Bill is restoring a car and has already spent $4000 on the restoration. He expects
to be able to sell the car for $5800. Bill discovers that he needs to do an additional
$2400 of work to make the car worth $5800 to potential buyers. He could also sell
