Here are some multiple choice questions
Revenue and cost {dollars per lawn mowed) 0 IO 20 30 40 50 Output (lawns mowed per week) Using the diagram, we can see that if the equilibrium market price for lawn mowing is $32, then maximum profit will be approximately $ . ' a_1280 ' b. 480 ' c.1300 7 d. 640 Using information from the first graph below, we can tell that the firm's total cost curve is best represented by curve in the second graph. Units of capital 20 18 16 14 12 10 - X C= 1,800 Total cost ($) | 2,000 - 1,800- 1,600- 1,400 1,200- 1,000 - 800 600 - 400- 200 50 100 150 200 250 300 350 Quantity of output O a. A O b. B Oc. C Od. DFor every one machine Firm Aemploys, it must employ 2 (and only 2) workers. There is no possibility for substitutions among inputs. Statement 1: Firm A's output will be the same if it employs 3 machines and 4 workers or it employs 2 machines and 6 workers Statement 2: Firm A's output will be the same if it employs 3 machines and 2 workers or it employs 3 machines and 6 workers Statement 1 is and statement 2 is . a. true; false 7 b.true; true ' c.false; true ' d. false; false Suppose you are the owner of Doggie 'Do' a dog grooming operation. Currently, 30 dogs are groomed daily, for which the only inputs required are scissors and groomers. If, upon doubling the number of scissors and groomers, you are able to groom 50 dogs daily, your dog grooming production function exhibits: a. constant returns to scale b.decreasing returns to scale c. increasing returns to scale d.there is not enough information provided to determine the returns to scale Consider a rm producing in the short run with capital xed. The table below shows how much output the rm can produce as it hires more labor. Marginal Average Product Product Labor Output of Labor of Labor o o 1 4 2 10 A 3 1s 4 24 a The marginal product of the third worker (A) is The average product of labor when 4 workers are hired (B) is Diminishing returns to labor begin when worker it is hired (enter a whole number such as 1 or 2 or 3 or 4) A perfectly competitive industry is made up a a number of identical firms. The market demand and supply are given by: Qd = 24,000 - 1,000P Qs = 3,000 + 2,000P Each individual firm has cost curves given in the short run by: Revenue and cost (dollars per unit) 10 20 Output (units per day) For each of the following, ENTER A WHOLE NUMBER. When maximizing profit, each individual firm has total revenue of $ , total costs of $_ , and total fixed costs of $ . Note: you will need to read numbers off the graph for this question. You can assume whole numbers for price (so if you aren't sure if a price is $5.99 or $6, assume $6. You can assume even numbers for quantity (so if you aren't sure if a quantity is 49 or 50, assume 50).Jill's Lawn Mowing Service is a small business that acts as a price taker. The prevailing market price of lawn mowing is $22 per acre. Jill's costs are given by (where q represents number of lawns mowed): TC = 0.1q~+ 10q + 50 To maximize profit, Jill should mow lawns
