[l O 1.(03.01Mc) The following table shows the average productivity of a team of landscapers hired to landscape a new city park. What is the marginal product of labor for the third landscaper? (2 points) The shift from MC4 to MC; illustrates variable costs increasing; decreasing increasing; increasing decreasing; decreasing remaining constant; increasing remaining constant; decreasing and total costs 1 O 2 (03.01M0) The following table displays the marginal productivity of dishwashers working for a catering company. What is the average product of three workers? (2 points) 3. (03.02 MC) Use the graph to answer the question. (2 points) Price MC2 MC1 Quantity (units) The shift from MC, to MC2 illustrates variable costs and total costsAN ERERCET ) Use the graph to answer the question. (2 points) Long Run Average Total Costs Output Between points C and D, the long-run average total cost curve is characterized by because the firm is experiencing returns to scale. (O constant returns; constant Between points C and D, the long-run a constant returns; constant economies of scale; increasing economies of scale; constant diseconomies of scale; increasing diseconomies of scale; decreasing age total cost curve is characterized by because the firm is experiencing returns to scale. 6. (03.03 MC) Which of the following describes the slope of the long-run average total cost curve when operating at efficient scale? (2 points) O It is flat. O It is positive. O It is negative. O It is negative and then positive. O It is positive and then negative.AP X YY) If a firm's explicit costs are $2,000, its implicit costs are $1,000, and its revenue is $5,000, the firm is earning (2 points) positive accounting profit of $2,000 negative accounting profit of $2,000 positive economic profit of $3,000 positive economic profit of $2,000 positive economic profit of $4,000 [l O 4 (03.02M0) (O O s1.50 [OREEL O s150 O $200 A firm's total cost at 10 units of production is $200, and its variable cost is $150. What would this firm's fixed cost be at 0 units? (2 points) AR PN, If a firm is maximizing its profits while earning normal profit, which of the following must be true? (2 points) Marginal revenue, total cost, and marginal cost are all equal. Marginal revenue equals average total cost, and total revenue is maximized. Marginal revenue equals marginal cost, and total cost equals total revenue. Marginal revenue equals average total cost, and marginal cost is at its minimum. Marginal revenue is greater than average total cost, and marginal cost is at its minimum. [l O 10.(03.05Mc) A firm operating in a perfectly competitive market cannot increase its profit. Which of the following must be true in the short run? (2 points) A decrease in output will leave profits unchanged. The firm cannot be earning positive economic profit. The firm's average total costs equal marginal costs. The firm's demand curve is downward sloping. The firm's marginal cost equals its price. [l O 11.(03.06 MC) The graph below shows the marginal revenue, marginal cost, and average total cost at different quantities for a firm in a perfectly competitive market. (2 points) Quantity If this firm chooses to produce no output in the short run, what must the market price be? If this firm chooses to produce no output in the short run, what must the market price be? O Below $20 O $21X$30 O $31X$40 $41X$50 O Above $50) s.(03.04MC) A firm is earning an accounting profit of $15,000. Its implicit costs are $2,000, explicit costs are $10,000, and its economic profit is $13,000. What must its total revenue be? (2 points) O $16,000 @ $25000 O $28,000 (O $30,000 Indeterminate [l O 13.(03.07MC) Consider the following cost schedule for a firm. What is the economic profit or loss for a perfectly competitive firm if the market price is $12? (2 points) [l O 14.(03.07m0) Which of the following accurately describes the minimum point of the average total cost curve for a perfectly competitive firm? Assume that it is earning positive economic profit. (2 points) C) The intersection of the average total cost curve and the average variable cost curve Q The profit-maximizing point of production @ The intersection of the average total cost curve and the marginal cost curve O The point at which demand changes from its elastic to inelastic range O The point at which marginal cost equals marginal revenue N ERETR LAV Use the graph to answer the question below. The quantity is measured in thousands of units. (2 points) 4 5 Quantity Assume this firm operates in a perfectly competitive market. Which of the following statements is true about the firm in the short run? Q It will earn normal or zero economic profit. @ It will earn negative economic profit equal to the area between price level P and ATC at the output quantity. 12. (03.06 MC) Excelsia is a firm in a perfectly competitive industry. At its profit-maximizing level of output, average total cost is not minimized and its variable cost is higher than its price. What will Excelsia decide to do? (2 points) O Operate in the short run but leave the market in the long run O Change output to meet the firm's average total cost minimum O Shut down in the short run O Increase price until the firm is earning normal profit O Decrease output until the firm is earning normal profitguamay Assume this firm operates in a perfectly competitive market. Which of the following statements is true about the firm in the short run? It will earn normal or zero economic profit. It will earn negative economic profit equal to the area between price level P and ATC at the output quantity. It will earn negative economic profit equal to the area between price level P and the price level at B. It will earn positive economic profit equal to the area between price level P and AVC at the output quantity. It will earn positive economic profit equal to the area under price level P and the price level at A