11.When P_X = $60, MP_X = 2 and MP_Y = 2, relative employment levels are optimal provided:

a.P_Y = 16.7.

b.P_Y = $24.

c. P_Y = $60.

d. P_Y = $150.

12.When P_X = $100, MP_X = 20 and MR_Q = $5, the marginal revenue product of X equals:

a.$100.

b.$50.

c. $10.

d. $5.

13.If total product for each of five units of labor is 10, 16, 20, 30, and 34, respectively, the marginal product of the third unit is

a.

20

b.

10

c.

4

d.

0

14.If P = $8 and MC = $5 + Q, the competitive firm's profit-maximizing level of output is:

a.

3

b.

0.2

c.

8

d.

15

15.If fixed cost at Q = 100 is $130, then

a.

fixed cost at Q = 0 is $0

b.

fixed cost at Q = 0 is less than $130

c.

fixed cost at Q = 200 is $260

d.

fixed cost at Q = 200 is $130

16.If variable cost rises from $60 to $100 as output increases from 15 to 20 units, the marginal cost of the twentieth unit

a.

is $100

b.

is $5

c.

is $40

d.

is $8

17.Suppose Guild produces 5,000 guitars per year. Its average total cost is $90, and its fixed cost is $250,000. What is its variable cost?

a.

$250,000

b.

$450,000

c.

$25,000

d.

$200,000

18.If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is

a.

-1/3

b.

-2 1/3

c.

-1/4

d.

-3

19.So long as P > AVC, the competitive firm's short-run supply curve is equal to:

a.

AVC

b.

MC

c.

P

d.

none of these.

20.At the profit maximizing level of output for a monopolist:

a.

P = AR and AR = AC

b.

P > MC and MR = MC

c.

P = MC and MR > MC

d.

P = MR and AC = MC