ECON 528 Final | Questions with 100% Verified Answers | Latest
Update 2026/2027
Question: The law of diminishing marginal returns states that increases in
the variable input reduce the total product.
Answer:
Question: We should use relatively more labor if we learn that the
marginal product per dollar of labor expenditures is less than
a marginal product per dollar of capital expenditures.
Answer:
Question: If a firm has increasing returns to scale, then increasing all
inputs by 1% will increase output by more than 1%.
Answer:
Question: If production displays economies of scale, the long-run
average cost curve is
Answer:
Question: Over time, more experienced workers will demand higher
wage and therefore, will lead to an increased in the cost of
production for the producers.
Answer:
, Question: Figure 12-6 shows the demand, marginal cost (MC) and
average total cost (ATC) curves for Jason's House of Apples.
Refer to Figure 12-6. To maximize his profit, Jason should
produce the rate of output indicated by point
Answer:
Question: Refer to Figure 3-8. The graph in this figure illustrates an initial
competitive equilibrium in the market for apples at the
intersection of D1 and S1 (point A). If the price of oranges, a
substitute for apples for buyers, decreases and the wages of
apple workers increase, how will the equilibrium point
change?
Answer:
Question: Figure 4-3 shows the market for tiger shrimp. The market is
initially in equilibrium at a price of $15 and a quantity of 80.
Now suppose producers decide to cut output to 40 in order
to raise the price to $18.
Refer to Figure 4-3. What is the value of the deadweight loss
at a price of $18?
Answer:
Update 2026/2027
Question: The law of diminishing marginal returns states that increases in
the variable input reduce the total product.
Answer:
Question: We should use relatively more labor if we learn that the
marginal product per dollar of labor expenditures is less than
a marginal product per dollar of capital expenditures.
Answer:
Question: If a firm has increasing returns to scale, then increasing all
inputs by 1% will increase output by more than 1%.
Answer:
Question: If production displays economies of scale, the long-run
average cost curve is
Answer:
Question: Over time, more experienced workers will demand higher
wage and therefore, will lead to an increased in the cost of
production for the producers.
Answer:
, Question: Figure 12-6 shows the demand, marginal cost (MC) and
average total cost (ATC) curves for Jason's House of Apples.
Refer to Figure 12-6. To maximize his profit, Jason should
produce the rate of output indicated by point
Answer:
Question: Refer to Figure 3-8. The graph in this figure illustrates an initial
competitive equilibrium in the market for apples at the
intersection of D1 and S1 (point A). If the price of oranges, a
substitute for apples for buyers, decreases and the wages of
apple workers increase, how will the equilibrium point
change?
Answer:
Question: Figure 4-3 shows the market for tiger shrimp. The market is
initially in equilibrium at a price of $15 and a quantity of 80.
Now suppose producers decide to cut output to 40 in order
to raise the price to $18.
Refer to Figure 4-3. What is the value of the deadweight loss
at a price of $18?
Answer:
