1. In economics, an equilibrium exists when:

Select one:

a.there isn't anything else people can do to make themselves better off.

b.a new opportunity arises, and if people take advantage of the opportunity they will become better off.

c.resources are no longer scarce.

d.everyone is able to have goods and services.

2. A restaurant charges the same price for everything on its menu: $8 for a burger, or a salad, or a pizza. You buy the pizza, but if you had not bought the pizza, you would have bought the salad. The opportunity cost of the pizza is:

Select one:

a.the $8 and the satisfaction you would have got from the salad.

b.the $8, the satisfaction you would have got from the salad, and the satisfaction you would have got from the burger.

c.the satisfaction you would have got from the salad.

d.the $8.

3. Masako has several job offers for the summer. Work hours are at the same time so she cannot take more than one job. Her jobs would pay hourly as follows:

a) bank teller $ 19.31

b) cashier $ 15.07

c) security guard $ 12.59

Based on this information only, how much is her opportunity cost of working as a bank teller? Answer in $s per hour.

a.15.07

b.12.59

c.27.66

d.19.31

e.46.97

5. A shipyard sales are $ 99848 when it sells 10 boats per year, and $ 106520 when it sells 11. What is its marginal revenue? (Answers in $s/unit)

a.-6672.00

b.606.55

c.9683.64

d.6672.00

e.None of the answers offered are accurate.

6. A house cleaning business operates using a car. All data in $s. Monthly costs of car lease is 345 , and insurance 110 are prepaid and non-refundable. Cost of labour is 5221 , cleaning supplies + gas for the car is 543. Firms total variable costs are __________ and total fixed costs are ___________.

a.888.00 ; {5331.00

b.None of the answers offered are accurate.

c.5331.00 ; {5331.00

d.455.00 ; {5764.00

e.5764.00 ; {455.00

7. Port Mann Bridge has 10 car lanes while Lions Gate bridge has only 3. In accordance with _____________ of scale, we would expect long run average cost to be ____________ for Port Mann bridge.

Select one:

a.

economies of scale; higher

b.constant returns to scale; equal

c.

diseconomies of scale; lower

d.

None of the answers offered are correct.

e.

economies of scale; lower

Clear my choice

8. Darlene runs a pizza parlor in a medium-sized community where there are many such parlors. Assuming she sells 161 slices per day, and her daily fixed costs are $ 104 and daily variable costs are $ 294. In the short run, an economist would likely advise Darlene to shut down if price she can charge for a slice is $ ______

a.above 1.83 , but below 2.47

b.below 0.65

c.below 1.83

d.below 2.47

e.None of the answers offered are correct.

Clear my choice

9. Mark the monopolist is producing a quantity such that his average total cost equals $32, marginal revenue is $47, and the price is $49. His ATC curve is U-shaped and he is currently minimizing his average total cost. To maximize profits Mark should:

Select one:

a.continue with the current production level; it is already maximizing profits.

b.produce less.

c.produce more.

d.shut down.

Clear my choice

10. The inverse Demand equations is:

P = 979 - 1.5 Q

The marginal cost is given as:

MC = 166 + 1.7 Q

The single price monopolist's Q is ____ and P is ____ If needed, round to two decimals for both P and Q.

(P in $/s unit, Q in units/period).

a.254.06 ; 597.91

b.172.98 ; 719.53

c.None of the asnwers offered are accurate.

d.138.38 ; 863.44

e.243.62 ; 1238.47

11. The inverse Demand equation is:

P = 1032 - 0.5 Q

The marginal cost is given as:

MC = 155 + 2.3 Q

If the market is served by many competitive firms, the equilibrium Q is ____ and P is ____ If needed, round to two decimals for both P and Q.

(P in $/s unit, Q in units/period).

a.341.25 ; 962.93

b.None of the asnwers offered are accurate.

c.265.76 ; 899.12

d.313.21 ; 875.39

e.423.93 ; 1188.61