Microeconomics

1. A firm must EWING? more of what Will-E Elf I'ESOUI'CES In order to produce more output in the short run? 2. Imagine you are drawing a total product curve. While moving along the total product curve, what is assumed to be held constant? 3. The change In total product divided by the increase in labor is termed as _. 4. At a furniture factory, two workers can make 14 chairs in an hour and three workers can make 18 chairs In an hour. what Is the marginal product of the third worker? what Is the average product? 5. Considering different cosls occurring at a typical firm, what type of cost will rst decrease and then increase as the rm Increases its output? 6. when both supply and demand are elastic, what will be the impact on price If supply decreases? 3'. Considering different costs occurring at a typical rm, what type of cost always decreases when output increases? 3. The cost curve is a horizontal straight line starting at some positive value along the vertical axis? Page-2: Concept Check Questions (Continued) 9. Cathy has a small retail business in a busy mall. During the holiday season her inventory grows signicantly and she simply doesn't have the storage space at her store. As a result, she has decided to have the product shipped to her home where she will temporarily store the Items she will replenish her stock with over the season. In this case, what Is Cathy's Implicit cost? 10. Imagine you are preparing for your nal exams. what Is the term used for \"the law\" that implies the more hours you spend studying per day, the less you will learn with each added hour? 11. Comparing variable oosts versus fixed costs, what Is the type of cost to categorize the property Insurance premiums? 12. A purely competitive rm maximizes its prots when it produces an output at which the difference between and is greatest. 13. A rm is maximizing its prot provided that equals ? 14. The kinked demand curve model explains price rigidity in what type of Industries? 15. The demand curve of a firm In monopolistic competition Is Identical to Its curve