ECP3704 Final Exam Review 2025/2026
Exam Questions and Verified Answers |
Already Graded A+
For most consumers, gasoline is a relatively inelastic good. In the very
short-term, the demand for gasoline tends to be - 🧠 ANSWER ✔✔more
inelastic.
When the marginal cost curve is below an average total cost curve,
average total cost is - 🧠 ANSWER ✔✔declining with output.
The difference between average total costs and average variable costs is -
🧠 ANSWER ✔✔average fixed cost.
Economies of scale exist whenever long-run average costs - 🧠 ANSWER
✔✔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 - 🧠 ANSWER ✔✔49
For given input prices, isocosts farther from the origin are associated with -
🧠 ANSWER ✔✔higher costs.
When the own price elasticity of good X is -3.5 then total revenue can be
increased by - 🧠 ANSWER ✔✔decreasing the price.
For the cost function C(Q) = 100 + 2Q + 3Q2, the variable cost of
producing 10 units of output is - 🧠 ANSWER ✔✔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? - 🧠
ANSWER ✔✔It will increase 9%
Lemonade, a good with many close substitutes, should have an own-price
elasticity that is: - 🧠 ANSWER ✔✔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: - 🧠 ANSWER
✔✔total revenue will decrease.
Exam Questions and Verified Answers |
Already Graded A+
For most consumers, gasoline is a relatively inelastic good. In the very
short-term, the demand for gasoline tends to be - 🧠 ANSWER ✔✔more
inelastic.
When the marginal cost curve is below an average total cost curve,
average total cost is - 🧠 ANSWER ✔✔declining with output.
The difference between average total costs and average variable costs is -
🧠 ANSWER ✔✔average fixed cost.
Economies of scale exist whenever long-run average costs - 🧠 ANSWER
✔✔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 - 🧠 ANSWER ✔✔49
For given input prices, isocosts farther from the origin are associated with -
🧠 ANSWER ✔✔higher costs.
When the own price elasticity of good X is -3.5 then total revenue can be
increased by - 🧠 ANSWER ✔✔decreasing the price.
For the cost function C(Q) = 100 + 2Q + 3Q2, the variable cost of
producing 10 units of output is - 🧠 ANSWER ✔✔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? - 🧠
ANSWER ✔✔It will increase 9%
Lemonade, a good with many close substitutes, should have an own-price
elasticity that is: - 🧠 ANSWER ✔✔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: - 🧠 ANSWER
✔✔total revenue will decrease.
