_____11. Gordie has income of $100.00 which he can spend on fish sticks and hockey sticks. If he buys 3 hockey sticks and has $40.00 left over to spend on fish sticks, the price of a hockey stick is

a. $60.00. b. $40.00. c. $20.00. d. $10.00. e. there is not sufficient information to answer the question.

_____12. The market for a perfectly competitive industry clears at a price of $3, and the minimum average cost for all firms is $2.50. Long run, we would expect an increase in

a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost. e. each firm's fixed costs.

_____13. If short-run average cost is rising, then

a. total cost must be falling. b. long-run average cost must be rising also. c. short-run marginal cost must be falling. d. short-run marginal cost must be greater than short-run average cost. e. total cost must be rising.

_____14. When average total cost is at a minimum

a. marginal cost is also at a minimum. b. marginal cost is at a maximum. c. marginal cost is zero. d. it is equal to marginal cost. e. it is equal to average variable cost.

_____15. If a firm is producing 150 units of output at an average variable cost of $7 per unit and total fixed cost is $600,

a. total variable cost must be $1650. b. average total cost is then $11 per unit. c. average total cost is $1100. d. total cost is $1050. e. average fixed cost is $6 per unit.

_____16. The expansion of career options in business for women 18-24, along with a decline in their number, has led to a decline in the supply of nurses. At the same time, the demand for nurses has increased as rising incomes lead to more demand for health care. From these facts, the supply and demand model allows us to clearly predict that in the new market equilibrium:

(i) the quantity of nurses employed will fall; (ii) the price (wages) of nurses will rise. a. i and ii b. i not ii c. ii not i d. neither i nor ii