Exam 21: Firm Supply-Part A

The change in producer's surplus when the market price changes from p1 to p2 is half of the area to the left of the marginal cost curve between p1 and p2.

(True/False)

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Question 41

Average fixed costs never increase with output.

(True/False)

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Question 42

A competitive firm has a continuous marginal cost curve.It finds that as output increases, its marginal cost curve first rises, then falls, then rises again.If it wants to maximize profits, the firm should never produce at a positive output where price equals marginal cost and marginal cost decreases as output increases.

(True/False)

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Question 43

Irma's production function is f(x1, x2)=(min{x₁, 3x₂})^1/2.If the price of factor 1 is w1 = $3 and the price of factor 2 is w2 = $9, then her supply function is given by the equation

(Multiple Choice)

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Question 44

A firm with the cost function c(y)= 20y2 + 500 has a U-shaped cost curve.

(True/False)

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Question 45

A competitive firm uses two variable factors to produce its output, with a production function q = min{x1, x2}.The price of factor 1 is $8 and the price of factor 2 is $5.Due to a lack of warehouse space, the company cannot use more than 10 units of x1.The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output.What is the smallest integer price that would make a firm willing to produce a positive amount?

(Multiple Choice)

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Question 46

Showing 41 - 46 of 46

Exam 21: Firm Supply-Part A

The change in producer's surplus when the market price changes from p1 to p2 is half of the area to the left of the marginal cost curve between p1 and p2.

Average fixed costs never increase with output.

Irma's production function is f(x1, x2)=(min{x1, 3x2})1/2.If the price of factor 1 is w1 = $3 and the price of factor 2 is w2 = $9, then her supply function is given by the equation

A firm with the cost function c(y)= 20y2 + 500 has a U-shaped cost curve.

Budget Constraint-Part A

Budget Constraint-Part B

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part A

Choice-Part B

Demand-Part A

Demand-Part B

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

Irma's production function is f(x1, x2)=(min{x₁, 3x₂})^1/2.If the price of factor 1 is w1 = $3 and the price of factor 2 is w2 = $9, then her supply function is given by the equation