Question 1
- The cookie company in the mall hires workers to produce cookies. The workers are paid $75 per day, and the cost of renting the space in the mall is $250 per day.
Number of workers Daily output (cookies) 1 200 2 400 3 600 4 700 The fixed costs of production are
a. $0 b. $75 c. $250 d. $300 e. $325
1 points
Question 2
- The cookie company in the mall hires workers to produce cookies. The workers are paid $75 per day, and the cost of renting the space in the mall is $250 per day.
Number of workers Daily output (cookies) 1 200 2 400 3 600 4 700 If two workers are hired, the variable costs are
a. $75 b. $100 c. $150 d. $200 e. $225 f. $250 g. $300 h. $400
i. $475
1 points
Question 3
- As a waiter you earn $60,000 per year, including tips. Someone offers you a new job as an economic consultant, which pays $100,000 per year. In order to be a consultant, you’ll need to rent an office and purchase supplies and new computer equipment. We can conclude which of the following?
a. If the explicit cost for the consulting job is $30,000 per year, your accounting profit is equal to $10,000. b. If the explicit cost for the consulting job is $25,000 per year, your economic profit is equal to $15,000. c. If the explicit cost for the consulting job is $20,000 per year, your economic profit is equal to $80,000. d. If the explicit cost for the consulting job is $20,000 per year, your accounting profit is equal to $20,000.
1 points
Question 4
- A pizza business has the cost structure described below. The firm’s fixed costs are $20 per day.
Output (pizzas per day) Total cost of output (fixed + variable) 0 $20 5 $80 10 $120 15 $150 20 $175 25 $195 30 $210 35 $230 40 $255 What are the firm’s average variable costs (AVC) at an output of 25 pizzas?
a. $0.80 b. $7.00 c. $7.80 d. $20.00 e. $195.00
1 points
Question 5
- A pizza business has the cost structure described below. The firm’s fixed costs are $20 per day.
Output (pizzas per day) Total cost of output (fixed + variable) 0 $20 5 $80 10 $120 15 $150 20 $175 25 $195 30 $210 35 $230 40 $255 What are the firm’s marginal costs (MC) at an output of 35 pizzas?
a. $0.57 b. $4.00 c. $9.20 d. $230.00
1 points
Question 6
- A pizza business has the cost structure described below. The firm’s fixed costs are $20 per day.
Output (pizzas per day) Total cost of output (fixed + variable) 0 $20 5 $80 10 $120 15 $150 20 $175 25 $195 30 $210 35 $230 40 $255 What are the firm’s average total costs (ATC) at an output of 10 pizzas?
a. $10 b. $12 c. $100 d. $120
1 points
Question 7
- The local ice cream shop is trying to figure out how many workers to hire, and part of the decision will be based on the marginal product of labor. The following table shows a short-run production function for quantity of ice cream tubs produced. Diminishing marginal returns begins after hiring which worker?
Workers hired Quantity of ice cream tubs produced 1 110 2 200 3 270 4 300 5 320 6 330 7 300 a. 1st b. 2nd c. 3rd d. 4th e. 5th f. 6th g. 7th h. never
1 points
Question 8
- The cookie company in the mall hires workers to produce cookies. The workers are paid $75 per day, and the cost of renting the space in the mall is $250 per day.
Number of workers Daily output (cookies) 1 200 2 400 3 600 4 700 The total costs when three workers are hired is
a. $75 b. $100 c. $150 d. $200 e. $225 f. $250 g. $300 h. $400
i. $475
1 points
Question 9
- A pizza business has the cost structure described below. The firm’s fixed costs are $20 per day.
Output (pizzas per day) Total cost of output (fixed + variable) 0 $20 5 $80 10 $120 15 $150 20 $175 25 $195 30 $210 35 $230 40 $255 What are the firm’s average fixed costs (AFC) at an output of 5 pizzas?
a. $4 b. $20 c. $80 d. $100
1 points
Question 10
- A semiprofessional baseball team near your town plays two home games each month at the local baseball park. They split the concessions 50/50 with the city, but keep revenue from ticket sales for themselves. The city charges the team $100 each month for the three-month season. The team pays the players and manager a total of $1,000 a month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 30 people at each home game.
In order to break even, how many tickets does the team need to sell for each game?
a. 33 b. 37 c. 41 d. 45 e. 49 f. 244
1 points
Question 11
- The following table shows a short-run production function for laptop computers. Use the data to determine where diminishing product begins.
0 0 1 50 2 120 3 200 4 260 5 310 6 325 7 320 8 310 Diminishing product begins after you hire worker number _____.
a. 0 b. 1 c. 2 d. 3 e. 4 f. 5 g. 6 h. 7 i. 8
