Microeconomics

1 Question 4(Multiple Choice Worth 2 points) (03.03 MC) Which of the following describes the slope of the long-run average total cost cunre when operating with diseconomies of scale? 0 It is flat. 0 It is positive. 0 It is negative and then positive. 0 It is positive and then negative. Question 10(Multiple Choice Worth 2 points) [CZ] (03.07 MC) Use the graph to answer the question below. The quantity is measured in thousands of units. w MC :30 ATC AVC g 320 a P 510 A o l 2 3 4 s 6 7 s 9 04!in Assume this firm operates in a perfectly competitive market. What will its economic profit be if it produces at the quantity of point B and charges at that price level above P? Assume this firm operates in a perfectly competitive market. What will its economic prot be if it produces at the quantity of point B and charges at that price level above P? 0 It will earn normal or zero economic profit. 0 It will earn negative economic profit equal to that price level multiplied by the quantity. 0 It will earn negative economic profit equal to the area between price level P and the price level at B. 0 It will earn positive economic profit equal to the area between price level P and the price level at B. 0 It will earn positive economic profit equal to the area under price level P and that output quantity. The following table displays the marginal productivity of dishwashers working for a catering company. Number of Dishwashers Marginal Product 1 4 2 5 3 6 4 7 5 6.8 6 6.7 U Question 13(Multiple Choice Worth 2 points) (03.02 MC) If a rm has fixed costs of $50 and variable costs of $100 at a production level of 5 units of output, then the total cost to produce 5 units will be 0 $50 O$150 0 $750 0 $800 0 $5,500