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

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.

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

L1 Use the following table to answer the next question. The Uretown Yokels ice hockey team is the only live sports entertainment in Uretownl. Ticket Price Total Attendance Total Revenue Marginal Revenue $14 100 $ 1400 $12 200 $2400 $10 $10 300 $3000 $6 $8 400 $3200 $2 $6 500 $3000 -$2 $4 600 $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; increase b. increase; decrease c. decrease; increase d. decrease; decrease