Question 1 (5 points) ) Listen The curve shows how the quantity supplied by an industry depends on the market price, given a fixed number of producers. O a) critical analysis (b) long-run industry supply O c) short-run industry supply O d) marginal costQuestion 2 {5 points} all The equilibrium price of a cookbook is $35 inthe perfectly competitive cookbook industry. Our rm produces 10,0130 cookbooks at an average total cost of $33, marginal cost of $313, and average variable cost of $30. Our rm, inthe short run= should: 0 a] produce more cookbooks because the next cookbook produced will increase prot by $5. 0 bl raise the price of cookbooks because the rm is losing money. 0 Cl shut down because the rm is losing money. 0 d} keep output the same because the rm is producing at the minimum average variable cost. Question 3 (5 points) Listen Which statement is TRUE? ( a) Economic profit results when a firm covers its variable costs. (b) If price falls below the average variable cost, the firm will continue to operate with economic losses. (c) Economic profit is always positive in the short run. (d) Average revenue and marginal revenue are the same in perfect competition.Question 4 [5 points] all (Figure: PlayonT-Shirts} Use Figure: PlayonT-Shirts. Edward is one of 10' vendors who sell playoff Tshirts at football games in a perfectly competitive market. His costs are identical to the costs of the other 9 vendors. 1When the i.t1dl.lstr..r is in longrun equilibrium: the price of each shirt will he , and the total quantityr supplied in the market will he Price or cost $14 14 EU 22 24 Quantity 0 a] $9; 200 O '3] $14; 24G O dim-,1? O 5\" $11; 220 Question 5 (5 points) Listen Wendi is a farmer who produces 100 bushels of quinoa in the short run. Her average total cost per bushel is $1.75, her total revenue is $450, and her total fixed cost is $100. In the short run, Wendi's: ( a) average variable cost is $1.25. (b) economic profit per bushel is $2.75. O c) average fixed cost is $1.50. O d) economic profit is $250.Question 6 (5 points) Listen In the model of perfect competition: ( a) individual firms can influence price but only slightly. (b) no individual or firm has enough power to affect price. (c) the price is determined by the number of participants in the market. O d) the consumer is at the mercy of powerful firms that can set prices as they wish.Question 7 (5 points) )Listen (Figure: The Perfectly Competitive Organic Produce Farm) Use Figure: The Perfectly Competitive Organic Produce Farm. The farm faces demand curve d and maximizes profit. In long-run equilibrium, the farm will produce units of output, which it will sell at a price of Price (per unit) MC ATC $3.00 d . . . 2.00 1.90 . . . 1.00 -. . 0 100 250 300 400 Output (per pday) a) 300; $2.00 O b) 400: $3.00 O c) 100; $1.00 O d) 250: $1.90Question 8 (5 points) Listen (Figure: Prices, Cost Curves, and Profits for Brianna's Best Brie) Use Figure: Prices, Cost Curves, and Profits for Brianna's Best Brie. Brianna owns Brianna's Best Brie, a perfectly competitive firm that produces artisanal cheeses. If the price of brie is P2, and the firm is profit-maximizing, then the firm's profit is: Price per brie MC ATC AVC gd P2 f:f. P1 -. . . . . 0 Q1 Q3Q2 Quantity of brie per week O a) (fg ) x Q2 Ob ) ( de ) x P2. O c) ( de ) x Q2. O d) (f g ) x Q3.Question 9 (5 points) E () Listen (Table: Total Cost and Output for All-Natural Frozen Yogurt) Use Table: Total Cost and Output for All- Natural Frozen Yogurt, which describes Sasha's total costs for his perfectly competitive all-natural frozen yogurt firm. Where does Sasha's short-run supply curve begin (assuming he can only produce whole quantities of output)? Table: Total Cost and Output for All-Natural Frozen Yogurt Output Total Cost 0 $10 60 2 80 3 110 4 170 5 245 O a) p=$36.67, Q =3 O b) P= $170, Q =4 O c) p = 50, Q = 0 O d) p= $33.33, Q =3Question 10 (5 points} all (Table: Variable lCosts for Pool Cleaning) Use Table: Variable lCosts for Pool Cleaning. During the summer, Elijah runs a pool cleaning service, and pool cleaning is a perfectly competitive industry. Assume that costs are constant in each interval; so= for example, the marginal cost of cleaning each pool from 1 through ID is $10. Also assume that he can only clean the quantities of pools given in the table (and not numbers in between). His only xed cost is $1,00 for the pool cleaning equipment. His variable costs include fuel, his time, and other everyday pool supplies. If the price of cleaning a pool is $60, hovI.r much is Elijah's prot per unit at the protmaximizing output? Table: Variable Costs for Pool Cleaning Quantity of 1Variable Costs Pools O a) $00.00 0 bl $2000 0 C} $32.50 0 5\" $150 Question 11 (5 points} all Suppose that when a platinummung rm hires one, two, three, four= or ve workers, the corresponding total output levels are 10, 15, 19, 22: and 24 tons of platinum= respectively. The marginal product of the fourth worker is tons of platinum. 03115 1313 Question 12 (5 points) Listen A firm's marginal cost is the: (a) ratio of the change in total output to the change in the quantity of labor. Ob) slope of the total cost curve. ( c) slope of the average variable cost curve. O d) ratio of the change in fixed cost to the change in the quantity of output.Question 13 (5 points) Listen A fixed cost: (a) decreases initially until the point of diminishing returns and then rises. (b) depends on the level of output. ( C) is positive, even if the firm doesn't produce any output in the short run. O d) occurs in the long run only.Question 14 (5 points} all Suppose that hiring one, two= three, or four workers at a glass factory generates total outputs of E, 3513, 451:], or 50C! fancy glasses, respectively. The marginal product of going om two to four workers is fancy glasses. 0 a} 150 O b] 50 O C} as O d} 204:: Question 15 (5 points) Listen (Table: Cost Data for Handbags at Horatio's Handbag Factory) Use Table: Cost Data for Handbags at Horatio's Handbag Factory. The average fixed cost of producing 4 handbags is: Table: Cost Data for Handbags at Horatio's Handbag Factory Number of Variable Cost of Total Cost of Handbags Handbags (VC) Handbags (TC) 0 0 50 1 50 100 2 70 120 3 100 150 4 140 190 5 190 240 6 250 300 7 320 370 a) $47.50. ( b) $12.50. O c) $50.00. O d) $82.50.Question 16 (5 points) Listen (Table: Costs of Wedding Cakes) Use Table: Costs of Wedding Cakes. Assume that fixed costs are $10. What is the average fixed cost of 2 wedding cakes? Table: Costs of Wedding Cakes Quantity of Cakes Variable Cost, VC 0 0 1 15 2 25 3 30 4 38 5 50 6 70 ( a) $5 b) $10 O c) $30 d) $25Question 175 points) all Suppose that hiring one, two= three, or four workers at a glass factory generates total outputs of E, 3513, 451:], or 500 fancy glasses, respectively. The marginal product of the fourth worker is fancy glasses. 0 a} 50 O b} 100 O C) 2430 O C\" 154:: Question 18 (5 points) E ) Listen (Figure: The Cost Curves for Charlie's Cookie Confections) Use Figure: The Cost Curves for Charlie's Cookie Confections. The curve labeled I represents the firm's cost curve. Cost (per period) Output (per period) a) average variable ( b) marginal O c) total ( d) average totalQuestion 19 {5 points) all (Table: Production Function for Quinoa) Use Table: Production Function for Quinna. Assume that the xed input consists of ID acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $190 per worker per day. The variable cost of producing 45 bushels of quinoa is: Table: Production Function for Quinn: Number of 'fl'kl's Bushels of Quinoa Question 20 (5 points} all IIii-Then a rm has diminishing marginal returns, its: 0 a} marginal product is falling but is likely.r still positive. 0 b] marginal product is negative. 0 C) total product is falling because the marginal product is falling and positive. 0 d} output is falling