Question 1

In Problem 1, suppose that the demand curve for antimacassars is p   . The firm's profit-maximizing output is closest to

Accepted Answer

A)  24,375 antimacassars. 
B)  16,250 antimacassars. 
C)  5,362.50 antimacassars. 
D)  8,125 antimacassars. 
E)  4,062.50 antimacassars. 
A)  24,375 antimacassars. 
B)  16,250 antimacassars. 
C)  5,362.50 antimacassars. 
D)  8,125 antimacassars. 
E)  4,062.50 antimacassars. B

Question 2

In Problem 1, suppose that the demand curve for antimacassars is p   . The firm's profit-maximizing output is closest to

Accepted Answer

A)  6,500 antimacassars. 
B)  13,000 antimacassars. 
C)  19,500 antimacassars. 
D)  4,290 antimacassars. 
E)  3,250 antimacassars. 
A)  6,500 antimacassars. 
B)  13,000 antimacassars. 
C)  19,500 antimacassars. 
D)  4,290 antimacassars. 
E)  3,250 antimacassars. B

Question 3

Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L, where L is the amount of labor it uses and Q is the number of meals produced. Rabelaisian Restaurants finds that in order to hire L units of labor, it must pay a wage of 10 + .1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P   =. The profit-maximizing output for Rabelaisian Restaurants is

Accepted Answer

A)  2,500 meals. 
B)  20,000 meals. 
C)  10,000 meals. 
D)  2,000 meals. 
E)  1,250 meals. 
A)  2,500 meals. 
B)  20,000 meals. 
C)  10,000 meals. 
D)  2,000 meals. 
E)  1,250 meals. C

Question 4

Suppose that the labor supply curve for a large university in a small town is given by w = 140 + 0.02L, where L is number of units of labor per week and w is the weekly wage paid per unit of labor. If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

Accepted Answer

A)  equals the wage rate plus $40. 
B)  is twice the wage rate. 
C)  equals the wage rate plus $20. 
D)  equals the wage rate. 
E)  equals the wage rate plus $60. 
A)  equals the wage rate plus $40. 
B)  is twice the wage rate. 
C)  equals the wage rate plus $20. 
D)  equals the wage rate. 
E)  equals the wage rate plus $60.

Question 5

Suppose that in Problem 2, the demand curve for mineral water is given by p = 40 - 16q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers. Mineral water is supplied to consumers by a monopolistic distributor, who buys from a monopolist producer who is able to produce mineral water at zero cost. The producer charges the distributor a price of c per bottle, that will maximize the producer's total revenue. Given his marginal cost of c, the distributor chooses an output to maximize profits. The price paid by consumers under this arrangement is

Accepted Answer

A)  $2.50. 
B)  $20. 
C)  $1.25. 
D)  $30. 
E)  $10. 
A)  $2.50. 
B)  $20. 
C)  $1.25. 
D)  $30. 
E)  $10.

Question 6

Suppose that the labor supply curve for a large university in a small town is given by w = 60 + 0.08L, where L is number of units of labor per week and w is the weekly wage paid per unit of labor. If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

Accepted Answer

A)  equals the wage rate. 
B)  is twice the wage rate. 
C)  equals the wage rate plus $160. 
D)  equals the wage rate plus $80. 
E)  equals the wage rate plus $240. 
A)  equals the wage rate. 
B)  is twice the wage rate. 
C)  equals the wage rate plus $160. 
D)  equals the wage rate plus $80. 
E)  equals the wage rate plus $240.

Question 7

Suppose that the labor supply curve for a large university in a small town is given by w = 140 + 0.05L, where L is number of units of labor per week and w is the weekly wage paid per unit of labor. If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

Accepted Answer

A)  is twice the wage rate. 
B)  equals the wage rate plus $50. 
C)  equals the wage rate plus $100. 
D)  equals the wage rate. 
E)  equals the wage rate plus $150. 
A)  is twice the wage rate. 
B)  equals the wage rate plus $50. 
C)  equals the wage rate plus $100. 
D)  equals the wage rate. 
E)  equals the wage rate plus $150.

Question 8

Suppose that in Problem 2, the demand curve for mineral water is given by p = 20 - 16q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers. Mineral water is supplied to consumers by a monopolistic distributor, who buys from a monopolist producer who is able to produce mineral water at zero cost. The producer charges the distributor a price of c per bottle, that will maximize the producer's total revenue. Given his marginal cost of c, the distributor chooses an output to maximize profits. The price paid by consumers under this arrangement is

Accepted Answer

A)  $10. 
B)  $15. 
C)  $1.25. 
D)  $.63. 
E)  $5. 
A)  $10. 
B)  $15. 
C)  $1.25. 
D)  $.63. 
E)  $5.

Question 9

Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 40L, where L is the amount of labor it uses and Q is the number of meals produced. Rabelaisian Restaurants finds that in order to hire L units of labor, it must pay a wage of 40 + .1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P   . The profit-maximizing output for Rabelaisian Restaurants is

Accepted Answer

A)  12,000 meals. 
B)  1,000 meals. 
C)  6,000 meals. 
D)  1,500 meals. 
E)  750 meals. 
A)  12,000 meals. 
B)  1,000 meals. 
C)  6,000 meals. 
D)  1,500 meals. 
E)  750 meals.

Question 10

Suppose that the labor supply curve for a large university in a small town is given by w = 160 + 0.03L, where L is number of units of labor per week and w is the weekly wage paid per unit of labor. If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

Accepted Answer

A)  equals the wage rate. 
B)  is twice the wage rate. 
C)  equals the wage rate plus $60. 
D)  equals the wage rate plus $30. 
E)  equals the wage rate plus $90. 
A)  equals the wage rate. 
B)  is twice the wage rate. 
C)  equals the wage rate plus $60. 
D)  equals the wage rate plus $30. 
E)  equals the wage rate plus $90.

Question 11

Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 30L, where L is the amount of labor it uses and Q is the number of meals produced. Rabelaisian Restaurants finds that in order to hire L units of labor, it must pay a wage of 30 + .1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P   . The profit-maximizing output for Rabelaisian Restaurants is

Accepted Answer

A)  12,000 meals. 
B)  24,000 meals. 
C)  3,000 meals. 
D)  2,500 meals. 
E)  1,500 meals. 
A)  12,000 meals. 
B)  24,000 meals. 
C)  3,000 meals. 
D)  2,500 meals. 
E)  1,500 meals.

Question 12

In Problem 1, suppose that the demand curve for antimacassars is p   . The firm's profit-maximizing output is closest to

Accepted Answer

A)  14,625 antimacassars. 
B)  7,312.50 antimacassars. 
C)  21,937.50 antimacassars. 
D)  4,826.25 antimacassars. 
E)  3,656.25 antimacassars. 
A)  14,625 antimacassars. 
B)  7,312.50 antimacassars. 
C)  21,937.50 antimacassars. 
D)  4,826.25 antimacassars. 
E)  3,656.25 antimacassars.

Question 13

Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L, where L is the amount of labor it uses and Q is the number of meals produced. Rabelaisian Restaurants finds that in order to hire L units of labor, it must pay a wage of 10 + .1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P   . The profit-maximizing output for Rabelaisian Restaurants is

Accepted Answer

A)  3,000 meals. 
B)  12,000 meals. 
C)  2,500 meals. 
D)  24,000 meals. 
E)  1,500 meals. 
A)  3,000 meals. 
B)  12,000 meals. 
C)  2,500 meals. 
D)  24,000 meals. 
E)  1,500 meals.

Question 14

Suppose that the labor supply curve for a large university in a small town is given by w = 160 + 0.05L, where L is number of units of labor per week and w is the weekly wage paid per unit of labor. If the university is currently hiring 1,000 units of labor per week, the marginal cost of an additional unit of labor

Accepted Answer

A)  equals the wage rate. 
B)  equals the wage rate plus $50. 
C)  is twice the wage rate. 
D)  equals the wage rate plus $100. 
E)  equals the wage rate plus $150. 
A)  equals the wage rate. 
B)  equals the wage rate plus $50. 
C)  is twice the wage rate. 
D)  equals the wage rate plus $100. 
E)  equals the wage rate plus $150.

Question 15

Suppose that in Problem 2, the demand curve for mineral water is given by p = 20 - 12q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers. Mineral water is supplied to consumers by a monopolistic distributor, who buys from a monopolist producer who is able to produce mineral water at zero cost. The producer charges the distributor a price of c per bottle, that will maximize the producer's total revenue. Given his marginal cost of c, the distributor chooses an output to maximize profits. The price paid by consumers under this arrangement is

Accepted Answer

A)  $15. 
B)  $.83. 
C)  $1.67. 
D)  $10. 
E)  $5. 
A)  $15. 
B)  $.83. 
C)  $1.67. 
D)  $10. 
E)  $5.

Question 16

In Problem 1, suppose that the demand curve for antimacassars is p   . The firm's profit-maximizing output is closest to

Accepted Answer

A)  16,875 antimacassars. 
B)  5,625 antimacassars. 
C)  3,712.50 antimacassars. 
D)  11,250 antimacassars. 
E)  2,812.50 antimacassars. 
A)  16,875 antimacassars. 
B)  5,625 antimacassars. 
C)  3,712.50 antimacassars. 
D)  11,250 antimacassars. 
E)  2,812.50 antimacassars.

Question 17

Suppose that in Problem 2, the demand curve for mineral water is given by p = 70 - 16q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers. Mineral water is supplied to consumers by a monopolistic distributor, who buys from a monopolist producer who is able to produce mineral water at zero cost. The producer charges the distributor a price of c per bottle, that will maximize the producer's total revenue. Given his marginal cost of c, the distributor chooses an output to maximize profits. The price paid by consumers under this arrangement is

Accepted Answer

A)  $52.50. 
B)  $35. 
C)  $4.38. 
D)  $2.19. 
E)  $17.50. 
A)  $52.50. 
B)  $35. 
C)  $4.38. 
D)  $2.19. 
E)  $17.50.

Question 18

In Problem 1, suppose that the demand curve for antimacassars is p   . The firm's profit-maximizing output is closest to

Accepted Answer

A)  4,900.50 antimacassars. 
B)  22,275 antimacassars. 
C)  7,425 antimacassars. 
D)  14,850 antimacassars. 
E)  3,712.50 antimacassars. 
A)  4,900.50 antimacassars. 
B)  22,275 antimacassars. 
C)  7,425 antimacassars. 
D)  14,850 antimacassars. 
E)  3,712.50 antimacassars.

Question 19

Suppose that in Problem 2, the demand curve for mineral water is given by p = 60 - 8q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers. Mineral water is supplied to consumers by a monopolistic distributor, who buys from a monopolist producer who is able to produce mineral water at zero cost. The producer charges the distributor a price of c per bottle, that will maximize the producer's total revenue. Given his marginal cost of c, the distributor chooses an output to maximize profits. The price paid by consumers under this arrangement is

Accepted Answer

A)  $30. 
B)  $45. 
C)  $3.75. 
D)  $7.50. 
E)  $15. 
A)  $30. 
B)  $45. 
C)  $3.75. 
D)  $7.50. 
E)  $15.

Question 20

Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L, where L is the amount of labor it uses and Q is the number of meals produced. Rabelaisian Restaurants finds that in order to hire L units of labor, it must pay a wage of 10 + .1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P   . The profit-maximizing output for Rabelaisian Restaurants is

Accepted Answer

A)  24,000 meals. 
B)  2,500 meals. 
C)  3,000 meals. 
D)  12,000 meals. 
E)  1,500 meals. 
A)  24,000 meals. 
B)  2,500 meals. 
C)  3,000 meals. 
D)  12,000 meals. 
E)  1,500 meals.

Exam 25: A: Factor Markets

In Problem 1, suppose that the demand curve for antimacassars is p . The firm's profit-maximizing output is closest to

In Problem 1, suppose that the demand curve for antimacassars is p . The firm's profit-maximizing output is closest to

In Problem 1, suppose that the demand curve for antimacassars is p . The firm's profit-maximizing output is closest to

In Problem 1, suppose that the demand curve for antimacassars is p . The firm's profit-maximizing output is closest to

In Problem 1, suppose that the demand curve for antimacassars is p . The firm's profit-maximizing output is closest to

Budget Constraint

A: Budget Constraint

Preferences

A: Preferences

Utility

A: Utility

Choice

A: Choice

Demand

A: Demand

Revealed Preference

A: Revealed Preference

Slutsky Equation

A: Slutsky Equation

Buying and Selling

A: Buying and Selling

Intertemporal Choice

A: Intertemporal Choice

Asset Markets

A: Asset Markets

Uncertainty

A: Uncertainty

Risky Assets

A: Risky Assets

Consumers Surplus

A: Consumers Surplus

Market Demand

A: Market Demand

Equilibrium

A: Equilibrium

Auctions

A: Auctions

Technology

A: Technology

Profit Maximization

A: Profit Maximization

Cost Minimization

A: Cost Minimization

Cost Curves

A: Cost Curves

Firm Supply

A: Firm Supply

Industry Supply

A: Industry Supply

Monopoly

A: Monopoly

Monopoly Behavior

A: Monopoly Behavior

Factor Markets

Oligopoly

A: Oligopoly

Game Theory

A: Game Theory

Game Applications

A: Game Applications

Behavioral Economics

Exchange

A: Exchange

Production

A: Production

Welfare

A: Welfare

Externalities

A: Externalities

Information Technology

A: Information Technology

Public Goods

A: Public Goods

Asymmetric Information

A: Asymmetric Information

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