Micro Unit 3 Econ Challenge

The marginal cost of producing the second unit of output is 

The fixed cost of producing the second unit of output is

The average variable cost of producing 3 units of output

Stephanie's Waterbeds faces the demand shown below for its beds. Each bed costs $300 to produce (no matter how many are made). What price should Stephanie change to maximize her profits?

Which of these does not hold true in the long-run?

Which statement about profit is True?

Given the cost function TC = 100 + 10Q, which is equal to 10?

Refer to the graph of a representative firm in a perfectly competitive industry shown above. Which is correct in the long-run?

A perfectly competitive firm sells its output for $40 per unit. Its current output is 1,000 units. At that level, its marginal cost is $50 and increasing, average variable cost is $35, and average total cost is $60. To maximize short-run profits, the firm should

Labor is the variable resource in a factory that produces hockey pucks. At the point where diminishing returns are beginning to occur the

A firm finds, in the long-run, that producing 30,000 vases costs $180,000 while producing 40,000 vases costs $200,000. This pattern might be explained by

With efficient production, this firm can maximize production at point

Marginal product declines when which worker is hired? The first column represents the number of workers while the second column represents the average product of the worker.

Julie installs custom cabinets in homes. If she installs seven cabinets per day, her total costs are $300. If she installs eight systems per day, her total costs are $400. Julie will install eight cabinets per day if the eighth customer is willing to pay at least

In the short run, competitive firms will temporarily shut down production if the price falls below

In the long run, the competitive equilibrium is

Equilibrium in the perfectly competitive market for olive oil is disturbed by an increase in the price of olives. Producer surplus in the olive oil market

The Honolulu tourism commission recently proposed a 7% tax on hotel rooms to pay for an outdoor amphitheater. A local university economist estimates that the tax would result in a 4% increase in price and an 8% drop in the quantity of hotel rooms demanded in this perfectly competitive market. As a result of the tax, the total spent on hotels

Given that soft drinks are a normal good. What is the likely effect on the market for soft drinks of a simultaneous increase in both consumer incomes and producer taxes on soft drinks.

A perfectly competitive firm is currently producing at a point where the price of the last unit produced exceeds its marginal-cost. In order to maximize profits in the short-run, this firm should

The table below shows the willingness to pay for 27" LCD Television. If the market price of a 27" LCD television is $1,000, the total consumer surplus will be:

What is the total variable cost of producing five goods?

As long as the principle of diminishing marginal utility is operating, any increased consumption of a good

Assume firms in a perfectly competitive industry have been releasing airborne toxins into their community. A government action requiring these firms to reduce these airborne toxins would have which of the following effects on the industry's output and price?