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 :

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 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.