12. Figure and Table: An Indifference Curve Map Quantity of restaurant meals ,2 ,3 90 ' BO - m - so P 50 .'1 D to e 30 _ 20 - 10 - 0 ' i 2 3 4 5 is 7 e 9 10 Quantity of rooms Consumption Quantity Quantity Total Utility Bundle of Rooms of Meals (mils) A 3 3|) 450 B 6 l 5 450 C 5 1|) SQI D 4 45 510 Reference: Ref 10-1 (Figure and Table: Indifference Curve Map) Look at the gure An Indifference Curve Map. Which of the following statements is true? a. Combination A is preferred to combination B. 1). Combination B is preferred to combination D. c. Combination C is preferred to combination A. (1. Combination B is preferred to combination C. 14. Two points on a standard indifference curve are 8 cookies and 2 brownies, and 6 cookies and 4 brownies. Which of the following combinations of cookies and brownies could lie on this indifference curve? a. 4 cookies and 8 brownies b. 7 cookies and 6 brownies c. 4 cookies and 4 brownies d. 6 cookies and 10 brownies Pizza (slices) A B b P3 P2 . . . . . a P1 . . . 0 H1 H2 Ha C A B Hot dogs Reference: Ref 10-4 (Figure: Indifference Curves and Consumption Bundles) Let MUp = marginal utility of pizza, MUH = marginal utility of hot dogs, Pp = price of a slice of pizza, PH = price of a hot dog. In the figure, the absolute value of the slope of an indifference curve is equal to: Ca. MUH/MUp. Ob. PplPH. Oc. PH/Pp. Od. MUp/MUH.20. If a perfectly competitive rm is producing a quantity Where P > MC, then prot: a. can be increased by increasing production. b. can be increased by decreasing the price. c. can be decreased by increasing the price. (1. can be decreased by increasing production. 10. Table: Total Cost and Output Output Total Cost 0 $10 60 80 110 170 245 MAUJNtI Reference: Ref 12-20 (Table: Total Cost and Output) Look at the table Total Cost and Output. The table describes Sergei's total costs for his perfectly competitive allnatural ice cream rm. If the market price of a 101itre tub of ice cream is $50, how much is Sergei's prot at the protmaximizing output? a. $40 b. $680 c. $330 (1. $150 16. Figure: Short-Run Monopoly Price and cost MC ATC F N AVC G O H P K MR Demand Q RSTU Quantity (per period) Reference: Ref 13-1 (Figure: Short-Run Monopoly) Look at the figure Short-Run Monopoly. The profit-maximizing price is price: Oa. P. Ob. O. Cc. N. Od