1.If P = $1,000 - $2Q:

a.MR

= $1,000Q - $4.

b.MR

= $1,000 - $8Q.

c.

MR = $1,000 - $4Q.

d.

MR = $250 - $0.25P.

2.Total

cost minimization occurs at the point where:

a.Q

= 0.

b.

MC = AC.

c.

AC = 0.

d.

MC = 0.

3.Average

cost minimization occurs at the point where:

a.MC

= AC.

b.

MC = 0.

c.

AC = 0.

d.

Q = 0.

4.When

the product demand curve is Q = 140 - 10P, and price is decreased from P₁ = $10 to P₂ = $9, the arc price elasticity of demand is:

a.-10

b.-3

c.

-4

d.

-2.1

5.If

the point price elasticity of demand equals -2 and the marginal cost per unit

is $10, the optimal price is:

a.$5

b.$10

c.

$20

d.

impossible to determine without

further information.

6. When the cross-price elasticity : PX=-3

a.demand rises by 3% with a 1% increase in the price of X.

b.

the quantity demanded decreases by 3%

with a 1% increase in the price of X.

c.

the quantity demanded rises by 1%

with a 3% increase in the price of X.

d.

demand decreases by 3% with a 1%

increase in the price of X.

7.If P=-3 and

MC = $0.44, the profit-maximizing price is:

a.3

b.$0.99

c. $0.66

d.

$1.98

8.When the product demand curve is P = $5 - $0.05Q, and Q = 60, the point price

elasticity of demand is:

a.-2/3

b.-3/2

c.

-8/3

d.

-3/8

Use

the following table to answer the next question. The Uretown Yokels ice hockey

team is the only live sports entertainment in Uretown.

Ticket

Price

Total

AttendanceTotal

RevenueMarginal

Revenue

$14100$1400

$12200$2400$10

$10300$3000$6

$8400$3200$2

$6500$3000

-$2

$4600$2400

-$6

9.At

a price of $8 per ticket, the Yokels attract 400 spectators. For the Yokels to

attract 500 spectators, they would have to ______________ price. Total revenue

would________________ .

a.increase;

increaseb. increase; decreasec.

decrease;

increased.

decrease; decrease

10.The

production function Q = 0.25X^0.5 Y^0.5 exhibits:

a.

constant returns to scale.

b.increasing

returns to scale.

c.

increasing and then diminishing

returns to scale.

d.

diminishing returns to scale.