3. (8 points) Suppose there are three goods, Good X, Good Y, and Good Z. Use the following notation: X: Quantity of Good X Y: Quantity of Good Y Z: Quantity of Good Z Px: Price of Good X Py: Price of Good Y Pz: Price of Good Z Suppose you have three separate observations made by a consumer. The observations are given in the following table Observation Px PyPz 2 Check to see if the above choices violate the Weak Axiom of Revealed Preference (WARP). If it does not violate WARP, give as much information as you can about how the consumer ranks the bundles. If it does violate WARP, simply write "It violates WARP".

Question 17 (Mandatory) (4 points) Which of the following is not constant along an individual consumer's demand curve for Pepsi? OA) The price of Coke B) The price of Pepsi C) The consumer's income D) All of these

Question 18 (Mandatory) (4 points) Which of the following would not shift the demand curve for golf balls? A) A decrease in the popularity of golf OB) A decrease in the price of golf balls C) An increase in the price of golf clubs D) An increase in the number of golfers

Question 19 (Mandatory) (4 points) A market is in equilibrium when A) demand is equal to supply B) quantity demanded is equal to quantity supplied. C) consumer preferences are equal to production costs. D) changes in demand are equal to changes in supply.

Question 36 (Mandatory) (4 points) Marginal product is A) always increasing. the maximum output that can be produced from different quantities of a variable resource. c) the additional output produced from using one more unit of a variable resource, holding other resources constant. D) None of the above. Question 37 (Mandatory) (2 points) According to the law of diminishing returns, as successive units of a variable resource are combined with the fixed resources, the additional output produced will eventually decline. True False Question 38 (Mandatory) (4 points) If the total cost of producing 6 units is $228 and the total cost of producing 7 units is $245, what is the marginal cost of producing the seventh unit? OA) $17 B) $245 $35 $38

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Question 39 (Mandatory) (4 points) Quantity Average Total Cost $10 2 $8 3 $7 4 $8 5 $9 Reference: Ref 22-5 In the table above, if total fixed cost is $7, what are the total variable costs of 5 units? OA) Cannot be determined from the information given. B) $2 C) $38 D) $45 Question 40 (Mandatory) (4 points) Economies of scale occur when a firm's long-run average cost curve OA) decreases as output increases. B) remains constant as output increases. C) slopes upward. D) increases as output increases.