Question: 1. The table below shows a firm's average variable cost and average total cost. Output Average Variable Cost | Average Total Cost $40 $160 2 35 95 3 40 80 45 75 5 50 74 6 55 75 In the short run, the lowest price at which the firm will continue to produce is A. $80 B. $74 C. $50 D. $35 E. $30 Mary's Demand Mark's Demand $12 $12 $10- $10- $8 $8 Price $6 Price $6 $4 $4 $2 $2 2 3 4 5 6 7 8 0 2 3 5 6 7 8 2. Quantity Quantity The graphs above show Mary's demand for hamburgers and Mark's demand for hamburgers. Suppose Mary and Mark are the only two consumers in the market. Which of the following is a point on the market demand curve for hamburgers? Price Quantity (A) $2 12 (B) $4 (C) $6 (D) $8 (E) $103. Which of the following can give a firm market power? (A) Having access to common information (B) Producing a standardized or homogeneous product (C) Lacking barriers to entry or exit (D) Having a large number of competitors in the market (E) Having economies of scale in production over the range of market output 5. Assume that more com is used to produce 4 In a perfectly competitive market for a good with a downward sloping demand curve and an upward sloping supply curve, the marginal social benet is greater than the marginal social cost at the market equilibrium quantity. The government imposition of a new per-unit tax on the production of the good would (A) have no effect on the price of the good (B) increase consumer surplus (C) increase the deadweight loss (D) increase producer surplus (E) increase the quantity sold of the good ethanol. Simultaneously, more effective control of pests and weeds occurs in farming. Which of the following will denitely occur in the corn market? (A) The price of corn will increase. (B) The quantity of corn will decrease. (C) The price of corn will decrease. (D) The quantity of corn will increase. (E) The supply of corn will decrease