39. What is the average total cost at the profit maximizing

output?

a. $43.25 b. $50.60 c. $300 d. some other amount

40. If 500 units are made and the price is $50, the total

profits of this firm will be

a. $300 b. -$300 c. $80 d. $25,000 e. unknowable

41. If we observe an increase in the equilibrium quantity of

computers traded (or sold) then either

a. demand increased. supply decreased or both

b. demand increased, supply increased or both

c. demand decreased, supply increased or both

d. demand decreased, supply decreased or both

42. A supply curve is - in the market period, --- sloping in the

-- and can shift only in the - run.

a. vertical, upward, short run, long

b. horizontal, upward, short run, long

c. upward, vertical, short run, long

d. vertical, upward, long run, short

43. When total cost was $400 the firm's output was 8,000.

Then total cost increased to $2,000 and output rose to

40,000. This is an example of:

a. economies of scale c. increasing returns to scale

b. diseconomies of scale d. constant returns to scale

44. Describe the adjustment process that is necessary to

eliminate a glut or excess supply in a market. The

market price drops,

a. quantity demanded rises, quantity supplied drops

b. quantity demanded falls, quantity supplied rises

c. demand increases and supply decreases

d. both demand and supply will rise