Econ 528 Mid Term Exam_ Managerial Economics | Econ528 Mid Term Exam_Summer 2022/2023_ Graded A

Econ 528 Mid Term Exam_Summer 2022/2023_Manegerial Economics – University of Louisiana Section – A 20 questions x 2 points = 40 points Check the best answer from the choices given for each of the 20 questions below. 1. Total cost minimization occurs at the point where: (a) AC = 0. (b) AC = MC. (c) MC = 0. (d) MC > AC. 2. Average cost minimization occurs at the point where: (a) AC = 0. (b) AC = MC. (c) MC = 0. (d) MC > AC. 3. If the demand function is given by: P = $1,000 - $4Q, then the marginal revenue function can be written as: (a) MR = $1,000 - $8Q (b) MR = $1,000 - $4Q (c) MR = $1,000 - $2Q (d) MR = $2,000 - $4Q 4. Profit maximization occurs at the point where: (a) AC = 0. (b) AC = MC. (c) MC = 0. (d) MC = MR. 5. Total revenue is maximized at the point where: (a) AC = 0. (b) AC = MC. (c) MC = 0. (d) MR = 0. 6. The quantity of product X supplied can be expected to rise with a fall in: (a) prices of substitute products. (b) price of X. (c) consumers preference for product X. (d) input prices. 7. If the cross-price elasticity of demand between two products is less than zero, (a) the two goods are substitutes. (b) the two goods are complements. (c) the two goods are inferior. (d) the two goods are unrelated. 8. If the income elasticity of demand for a good is less than zero, (a) the good is a substitute good. (b) the good is a complement good. (c) the good is an inferior good. (d) the good is a normal good. 9. When the product demand curve is Q = 40 – 4P the point price elasticity at the price of $6 is (a) -1.5. (b) -4.0. (c) -6.0. (d) -40. 10. When the product demand curve is Q = 300 – 20P and the price is raised from P1 = $2 to P2 = $3, the quantity demanded decreases by (a) 1. (b) 10. (c) 20. (d) 30. - - - - - Continued