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Question;14) The Omnibus Corporation finds that its daily;costs are $50 when it produces no output. Its total variable costs (TVC) change;with output as shown in the accompanying table. Use this information to answer;the following question(s).;Output;TVC;1;$36;2;$57;3;$73;4;$94;5;$120;Refer to the above information. The marginal cost of the fourth;unit of output is: 14);A) $73.;B) $94.;C) $21.;D) $23.50.;E) $24.50.;15) A perfectly inelastic supply is represented by a;supply curve. 15);A) vertical;B) upward sloping;C) downward sloping;D) horizontal;16) When the price of a good is $75, 25 units are demanded. When;the price of the good is $25, 75 units are demanded.;Using the initial value, the elasticity of demand is;starting at a price of $75 and ________ starting at a price of;$25. 16);A) 1, 1;B) 3, 3;C) 1/3, 3;D) 3, 1/3;17) An increase in supply caused no change in the equilibrium;price of a good. Thus, demand must be: 17);A) perfectly elastic.;B) perfectly inelastic.;C) unitary elastic.;D) vertical.;18) The government imposes a maximum price on apartments that is;below the equilibrium price. You accurately predict;that: 18);A) the law will have no economic impact.;B) renters will find that landlords start;offering to furnish the apartments.;C) the law will create an excess supply of;apartments.;D) there will be fewer apartments available to;rent.;19) Refer to the figure below. When trying to maximize;utility subject to a budget constraint, the consumer would choose? 19)____.;A. Either point e or point j only.;B. Point k only.;C. Any one of points k, e, or j.;D. Point e only.;20);Refer to the above data. On the basis of cost-benefit analysis;government should undertake: 20);A) Plan A.;B) Plan B.;C) Plan C.;D) Plan D.;21);Tiny State University raises tuition for the purpose of increasing its revenue;so that more faculty can be hired. TSU is assuming that the demand for;university education at TSU is: 21);A) decreasing.;B) relatively elastic.;C) perfectly elastic.;D) relatively inelastic.;22) Refer to Table 7.1. Diminishing marginal utility sets in after;the ________ cup of coffee per day. 22);A) first;B) second;C) third;D) fourth;23) Refer to Table 7.1. The marginal utility of the third donut;per day is: 23);A) 60.;B) 20.;C) 15.;D) 75.;24) Refer to Table 7.1. The total utility of five donuts per day;is: 24);A) 70.;B) 60.;C) 65.;D) 78.;25) If a company in the U.S. would like to;increase sales, what would be the best incentive for a customer to consume more;goods? 25);A) incorporate free goods or services;B) Consumers are indifferent to any incentives.;C) offer discounted goods or services;D) none of the above;26) Suppose that Erin spends all of her income on two goods, pizza;and fiction novels. If the price of pizza rises then;26);A) the current marginal utility per dollar spent;on fiction novels will rise.;B) the current marginal utility per dollar spent;on fiction novels will fall.;C) the current marginal utility per dollar spent;on pizza will rise.;D) the current marginal utility per dollar spent;on pizza will fall.;27) A firm will begin to experience diminishing returns at the;point where: 27);A) marginal cost decreases.;B) marginal product increases.;C) marginal cost increases.;D) both B and C


Paper#57861 | Written in 18-Jul-2015

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