Premium Essay

Eco 4

In: Computers and Technology

Submitted By xlabz
Words 1818
Pages 8
• Question 1
2.5 out of 2.5 points Compared to a perfectly competitive industry, a single-price monopoly produces
Answer
Selected Answer: less output.
Correct Answer: less output. • Question 2
2.5 out of 2.5 points A natural monopoly arises when
Answer
Selected Answer: the long-run average cost curve slopes downward as it crosses the demand curve.
Correct Answer: the long-run average cost curve slopes downward as it crosses the demand curve. • Question 3
2.5 out of 2.5 points

Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to
Answer
Selected Answer:
$20.
Correct Answer:
$20.

• Question 4
2.5 out of 2.5 points The total product is 10 units. The average total cost is $30 and the average fixed cost is $10. What is the amount of the total variable cost?
Answer
Selected Answer:
$200
Correct Answer:
$200

• Question 5
2.5 out of 2.5 points Which of the following costs can be positive when output is zero?
Answer
Selected Answer: total fixed cost
Correct Answer: total fixed cost • Question 6
2.5 out of 2.5 points At the Punjab Bakery, two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour. The marginal product of the third worker is
Answer
Selected Answer:
4 cakes and the average product for three workers is 6 cakes.
Correct Answer:
4 cakes and the average product for three workers is 6 cakes. • Question 7
2.5 out of 2.5 points As we observe the cost curves' graph, we see that the
Answer
Selected Answer:
MC curve intersects the AVC curve and ATC curve at their minimums.
Correct Answer:
MC curve intersects the AVC curve and ATC curve at their

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