Exam 6: Sellers and Incentives

The following table shows the total output produced by different numbers of workers in a shoe factory. -Refer to the table above.Which of the following statements is true about the marginal product of labor?

The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use. -Refer to the figure above.The long-run average total cost curve of the firm goes through points ________.

The total revenue earned from the sale of a good is ________.

Which of the following statements is true of the marginal product of an input?

A firm is seeing a $500 loss in the short run.The fixed cost of operation for this firm is $1,000.What is the best decision for this firm in the short run?

The figure below shows cost curves of a firm in a competitive market. The firm always makes the choice to maximize its profit. -Refer to the figure above.If the market price of the product is $3.25,what is the firm's revenue?

The following graph shows the short-run production function of a firm. -Refer to the graph above.When does the "diminishing marginal returns to inputs" begin?

Average fixed costs for a firm are ________.

The following figure depicts the supply curve of a certain firm. -Refer to the figure above.If the elasticity of supply is 0.5 when the quantity changes from 100 to 150,what is the price at the quantity 100?

A firm has an average total cost of $50.If it sells 20 units of its product at $80 each,what is its profit?

Which of the following statements is true in the short run?

Which of the following examples best describes the concept of free entry?

If a firm is maximizing profits in the short run at a level of output where Average total cost > Price > Average variable cost,then the firm is ________.

A firm sells 20 units of a good at a price of $5 per unit.If the average cost of production of the good equals $3 per unit,the firm's revenue is ________.

The following figure depicts a firm's long-run average total cost and selected short-run average total cost curves. -Refer to the figure above.The firm is currently producing at point A.If it increases its employment of labor,it will move toward ________.

In the long run,a firm should exit from a market when ________.

Scenario: A car repair shop hires workers and pays them the federal minimum wage of $7.25. The following table shows the marginal returns to each worker in terms of number of cars repaired. -Refer to the scenario above.If this firm hires 3 workers,how many cars in total can the shop repair per day?

Which of the following is true of the price elasticity of supply?

If a small decrease in the price of a good decreases the quantity supplied to zero,the supply of the good is said to be ________.

In a perfectly competitive market,________.