com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&ctal=0&anb=0&from slate Question 2 (1 point) What happens to the equilibrium price and quantity of new houses constructed in Fayette, Iowa if i.) the price of lumber (an input in house production) falls at the same time ii) average income levels in Fayette, Iowa decrease and houses are normal goods? The equilibrium price decreases and the equilibrium quantity falls. The equilibrium price decreases and the equilibrium quantity is indeterminate. The equilibrium price is indeterminate and the equilibrium quantity increases. The equilibrium price decreases and the equilibrium quantity increases. Question 3 (1 point) Saved Firm notices that Firm B is making a profit by producing footballs. There is no1:00:26 r Question 5 (1 point) At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a supply and demand graph and answer the following questions: a. Is there a shortage or surplus of avocados? How much is the shortage or surplus? b. Without any government intervention, what will happen to the price and quantity of avocados? c. Represent part b on a graph. Question 6 (1 point) Saved1:00 Question 8 (1 point) When the government places a tax on a good and all else is held constant, which of the following would most likely happen? The overall consumption of the good decreases, assuming the good does not have a vertical demand curve. The price the buyer pays for the good decreases, assuming the good does not have a horizontal demand curve. The supply curve shifts to the right. The government receives no tax revenue if the tax is more than 20 percent. The price and quantity adjust back to the competitive market equilibrium point. Question 9 (1 point) Saved the fact thatQuestion 13 (1 point) The presence of a perfectly competitive market typically leads to O less welfare more consumer surplus less producer surplus greater inefficiency Question 14 (1 point) Saved0:59: Question 18 (1 point) Graph the following labor supply curves: a. The substitution effect dominates the income effect until the wage reaches $200, after which the income effect dominates. b. The income and substitution effects do not affect the worker's decision. She wants to work only 40 hours every week. tion 19 (1 point) SavedQuestion 21 (1 point) One of the primary causes of diminishing marginal product is increasing marginal cost. increasing price. decreasing marginal cost. diminishing total cost. diminishing average fixed cost. Question 22 (1 point) Saved Refer to the following graphs to answer the following questions: Wage| S SQuestion 38 (1 point) A pure market economy is likely to underprovide a product causing a positive externality like flu shots because private firms value health less than public firms. it is generally impossible to enforce laws mandating flu shots. O the consumers are poorly informed as to the benefits of flu shots. O consumers are not internalizing all of the benefits of flu shots. Question 39 (1 point) Betty spends $100,000 to buy a small storefront building in downtown Fayette, Iowa. She is an artist wants to make artistic designs and then screen prints her designs onto t-shirts. She spends $10,000 or0:59 Question 39 (1 point) Betty spends $100,000 to buy a small storefront building in downtown Fayette, Iowa. She is an artist and wants to make artistic designs and then screen prints her designs onto t-shirts. She spends $10,000 on a large screen printing machine. Each time she prints a t-shirt, she spends $4 on the plain t-shirt because she wants to use organic cotton shirts. The ink for each shirt costs $1 and she estimates that her labor cost for the production of 1 shirt is $1. What is the average total cost (ATC) of producing 200 t-shirts? O $556 O $550 $6 Question 40 (1 point) SavedRefer to the following figure: Total Utility 50 45 42 38 33 28 15 8 Number of Tacos a. What is the marginal utility of the third and eighth tacos? b. Does this consumer experience diminishing marginal utility? If so, after which taco does he or she experience it? c. Does this consumer experience negative marginal utility? If so, after which taco does he or she experience it?late 0:58:43 remai Question 63 (1 point) Low barriers to entry and exit mean that in the run for monopolistically competitive firms, it is _ to generate economic profit. short; possible short; impossible O long; possible O long; impossible long; likely Question 64 (1 point) Compare and contrast the three market models in terms of the profit-maximizing output level for each, the shutdown rule for each, and the probability of long-run economic profits being earned.0:58:36 re Question 64 (1 point) Compare and contrast the three market models in terms of the profit-maximizing output level for each, the shutdown rule for each, and the probability of long-run economic profits being earned. estion 65 (1 point) rofit-maximizing, monopolistically competitive firmsslate 0:58:29 Question 65 (1 point) Profit-maximizing, monopolistically competitive firms consider the actions of their competitors when determining price. consider the actions only of the price leader in their market when determining price. consider only marginal cost and marginal revenue, which determine the level of output-and the level of output determines price. consider only average total cost and average variable cost, which determine the level of output-and the level of output determines price. take their price from the industry price, as do perfectly competitive firms. Question 66 (1 point) Advertising is designed tonslate 0:58 Question 66 (1 point) Advertising is designed to O increase the price elasticity of demand for the firm and shift the firm's demand curve rightward. O decrease the price elasticity of demand for the firm and shift the firm's demand curve rightward. increase the price elasticity of demand for the industry and shift the firm's demand curve rightward. O decrease the price elasticity of demand for the industry, but have no effect on the firm's demand. cause the income elasticity of consumers to become zero. Question 67 (1 point)am Question 67 (1 point) Monopolistically competitive firms eventually become perfectly competitive. follow the price leader. earn long-run economic profits. necessarily earn short-run economic profits. "compete away" economic profit to zero. Question 68 (1 point) Saved Refer to the following graph to answer the following questions: Price, Marginal Costs, and Cost Revenue (Dollars)Question 70 (1 point) (FIRM) (MARKET) $35 $30 $25 $25 $20 $15 $15 $10 $10 $ 5 $ 5 $0 18 20 Consider the perfectly competitive market depicted in the graphs. Assuming the market is in equilibrium, what should this firm do? leave the market permanently in the long run keep producing in the short run shut down temporarily in the short run lay off workers temporarily in the short run