ECON 2020 Exam Three|Questions With Correct Answers|Verified
A firm facing a price of P1 will produce _________ units and earn ________ profit - q1
positive
A firm facing a price of P1 will produce __________ units and earn ________ profit. -
zero
negative
A firm in a perfectly competitive product market faces a market price of $44. If the firm faces
marginal cost represented by the equation MC = 2 + 6q, then q* is ____ units. - 7
A movement of the budget line from BL1 to BL2 would represent a _________ in
_____________. - rise, the price of baby carriers
Assume the consumer must not exceed her budget, if she currently plans to buy consumption
bundle E, then she could increase total utility by purchasing _______ pagers and _______
satchels. - fewer; more
Based on the graph, which of the following statements is FALSE? (Mark all that apply.)
The consumer considers the goods to be perfect complements.
Pizza slices are more expensive than tacos.
The consumer considers the goods to be perfect substitutes.
Tacos are more expensive than pizza slices. - The consumer considers the goods to be
perfect complements.
Tacos are more expensive than pizza slices.
Brennan gets a raise at PetSmart and increases his demand for boats. The resulting change in
Brennan's quantity demanded will result in a(n) ______________ in his marginal utility from the
last boat consumed and a(n) _____________ in his total utility. - decrease, increase
, Diseconomies of scale occur when
long run average total cost increases as output increases
long run average fixed cost increases as output increases
long run average total cost decreases as output increases
long run total cost decreases as output increases
long run total cost increases as output increases - long run average total cost increases as
output increases
Firms find the profit-maximizing level of output where ___________ is equal to ___________ -
Marginal revenue
Marginal cost (MR=MC)
If the consumer has an income of $12,000, then the price of a satchel is $_____________.
(Round to the nearest dollar.) - 200
If the firm sells 5 units for a price of $120 each, then the firm's profit is $__________. -
25
Nancy has $180 to spend on goods X and Y. Good X has a price of $9 and good Y has a price of
$3. If Nancy spends all of her income on a bundle that contains 15 units of good X, then the
bundle must contain ___ units of good Y. - 15
Nancy has $180 to spend on goods X and Y. Good X has a price of $9 and good Y has a price of
$3. The opportunity cost of one unit of good X is ____ units of Y. - 3
optimal consumption bundle - the consumption bundle that maximizes the consumer's
total utility given his or her budget constraint (Where TUx = TUy for total utility) remember to
multiply times the x/y value
A firm facing a price of P1 will produce _________ units and earn ________ profit - q1
positive
A firm facing a price of P1 will produce __________ units and earn ________ profit. -
zero
negative
A firm in a perfectly competitive product market faces a market price of $44. If the firm faces
marginal cost represented by the equation MC = 2 + 6q, then q* is ____ units. - 7
A movement of the budget line from BL1 to BL2 would represent a _________ in
_____________. - rise, the price of baby carriers
Assume the consumer must not exceed her budget, if she currently plans to buy consumption
bundle E, then she could increase total utility by purchasing _______ pagers and _______
satchels. - fewer; more
Based on the graph, which of the following statements is FALSE? (Mark all that apply.)
The consumer considers the goods to be perfect complements.
Pizza slices are more expensive than tacos.
The consumer considers the goods to be perfect substitutes.
Tacos are more expensive than pizza slices. - The consumer considers the goods to be
perfect complements.
Tacos are more expensive than pizza slices.
Brennan gets a raise at PetSmart and increases his demand for boats. The resulting change in
Brennan's quantity demanded will result in a(n) ______________ in his marginal utility from the
last boat consumed and a(n) _____________ in his total utility. - decrease, increase
, Diseconomies of scale occur when
long run average total cost increases as output increases
long run average fixed cost increases as output increases
long run average total cost decreases as output increases
long run total cost decreases as output increases
long run total cost increases as output increases - long run average total cost increases as
output increases
Firms find the profit-maximizing level of output where ___________ is equal to ___________ -
Marginal revenue
Marginal cost (MR=MC)
If the consumer has an income of $12,000, then the price of a satchel is $_____________.
(Round to the nearest dollar.) - 200
If the firm sells 5 units for a price of $120 each, then the firm's profit is $__________. -
25
Nancy has $180 to spend on goods X and Y. Good X has a price of $9 and good Y has a price of
$3. If Nancy spends all of her income on a bundle that contains 15 units of good X, then the
bundle must contain ___ units of good Y. - 15
Nancy has $180 to spend on goods X and Y. Good X has a price of $9 and good Y has a price of
$3. The opportunity cost of one unit of good X is ____ units of Y. - 3
optimal consumption bundle - the consumption bundle that maximizes the consumer's
total utility given his or her budget constraint (Where TUx = TUy for total utility) remember to
multiply times the x/y value
