ECP3704 Final Exam Review Questions
and Answers 100% Pass
For most consumers, gasoline is a relatively inelastic good. In the very
short-term, the demand for gasoline tends to be - ✔✔more inelastic.
When the marginal cost curve is below an average total cost curve, average
total cost is - ✔✔declining with output.
The difference between average total costs and average variable costs is -
✔✔average fixed cost.
Economies of scale exist whenever long-run average costs - ✔✔decrease as
output is increased.
For the cost function C(Q) = 100 + 4Q + 5Q2, the marginal cost of
producing the 5th unit of output is approximately - ✔✔49
1
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, For given input prices, isocosts farther from the origin are associated with -
✔✔higher costs.
When the own price elasticity of good X is -3.5 then total revenue can be
increased by - ✔✔decreasing the price.
For the cost function C(Q) = 100 + 2Q + 3Q2, the variable cost of producing
10 units of output is - ✔✔320
The own-price elasticity of demand for apples is -1.5. If the price of apples
falls by 6%, what will happen to the quantity of apples demanded? - ✔✔It
will increase 9%
Lemonade, a good with many close substitutes, should have an own-price
elasticity that is: - ✔✔relatively elastic.
A 25 percent decrease in the price of breakfast cereal leads to a 20 percent
increase in the quantity of cereal demanded. As a result: - ✔✔total revenue
will decrease.
If the cross-price elasticity between good A & B is negative, we know the
goods are: - ✔✔Complements
2
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and Answers 100% Pass
For most consumers, gasoline is a relatively inelastic good. In the very
short-term, the demand for gasoline tends to be - ✔✔more inelastic.
When the marginal cost curve is below an average total cost curve, average
total cost is - ✔✔declining with output.
The difference between average total costs and average variable costs is -
✔✔average fixed cost.
Economies of scale exist whenever long-run average costs - ✔✔decrease as
output is increased.
For the cost function C(Q) = 100 + 4Q + 5Q2, the marginal cost of
producing the 5th unit of output is approximately - ✔✔49
1
100% Pass Guarantee Katelyn Whitman, All Rights
, For given input prices, isocosts farther from the origin are associated with -
✔✔higher costs.
When the own price elasticity of good X is -3.5 then total revenue can be
increased by - ✔✔decreasing the price.
For the cost function C(Q) = 100 + 2Q + 3Q2, the variable cost of producing
10 units of output is - ✔✔320
The own-price elasticity of demand for apples is -1.5. If the price of apples
falls by 6%, what will happen to the quantity of apples demanded? - ✔✔It
will increase 9%
Lemonade, a good with many close substitutes, should have an own-price
elasticity that is: - ✔✔relatively elastic.
A 25 percent decrease in the price of breakfast cereal leads to a 20 percent
increase in the quantity of cereal demanded. As a result: - ✔✔total revenue
will decrease.
If the cross-price elasticity between good A & B is negative, we know the
goods are: - ✔✔Complements
2
100% Pass Guarantee Katelyn Whitman, All Rights
