Exam 22:Cost Curves-Part A

Mary Magnolia from your workbook has variable costs equal to y²/F,where y is the number of bouquets she sells per month and where F is the number of square feet of space in her shop.If Mary has signed a lease for a shop with 600 square feet,if she is not able to get out of the lease or to expand her store in the short run,and if the price of a bouquet is $4 per unit,how many bouquets per month should she sell in the short run?

(Multiple Choice)

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Question 41

If marginal costs increase as output increases,then the average fixed cost curve will be U-shaped.

(True/False)

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Question 42

A firm has the production function Q =X^1/2₁X₂.In the short run it must use exactly 35 units of factor 2.The price of factor 1 is $105 per unit and the price of factor 2 is $3 per unit.The firm's short-run marginal cost function is

(Multiple Choice)

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Question 43

If the average cost curve is U-shaped,then the marginal cost curve must cross the average cost curve at the bottom of the U.

(True/False)

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Question 44

In the reclining chair industry (which is perfectly competitive),two different technologies of production exist.These technologies exhibit the following total cost functions: C1(Q)= 500 + 560Q -40Q2 + Q3 C2(Q)= 600 + 280Q - 20Q2 + Q3 Due to foreign competition,the market price of reclining chairs has fallen to $170.In the short run,firms using technology 1

(Multiple Choice)

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Question 45

The following relationship must hold between the average total cost (ATC)curve and the marginal cost curve (MC):

(Multiple Choice)

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Question 46

The marginal cost curve of a firm is MC=6y.Total variable costs to produce 10 units of output are

(Multiple Choice)

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Question 47

A firm has the long-run cost function C(Q)=4Q2 +196.In the long run,it will supply a positive amount of output,so long as the price is greater than

(Multiple Choice)

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Question 48

A firm has the production function Q =X^1/2₁X₂.In the short run it must use exactly 15 units of factor 2.The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit.The firm's short-run marginal cost function is

(Multiple Choice)

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Question 49

Showing 41 - 49 of 49

Exam 22:Cost Curves-Part A

If marginal costs increase as output increases,then the average fixed cost curve will be U-shaped.

A firm has the production function Q =X1/21X2.In the short run it must use exactly 35 units of factor 2.The price of factor 1 is $105 per unit and the price of factor 2 is $3 per unit.The firm's short-run marginal cost function is

If the average cost curve is U-shaped,then the marginal cost curve must cross the average cost curve at the bottom of the U.

The following relationship must hold between the average total cost (ATC)curve and the marginal cost curve (MC):

The marginal cost curve of a firm is MC=6y.Total variable costs to produce 10 units of output are

A firm has the long-run cost function C(Q)=4Q2 +196.In the long run,it will supply a positive amount of output,so long as the price is greater than

A firm has the production function Q =X1/21X2.In the short run it must use exactly 15 units of factor 2.The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit.The firm's short-run marginal cost function is

Demand-Part A

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 B

Firm Supply-Part A

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-Part A

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

A firm has the production function Q =X^1/2₁X₂.In the short run it must use exactly 35 units of factor 2.The price of factor 1 is $105 per unit and the price of factor 2 is $3 per unit.The firm's short-run marginal cost function is

A firm has the production function Q =X^1/2₁X₂.In the short run it must use exactly 15 units of factor 2.The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit.The firm's short-run marginal cost function is