(no need explanation only answer will be fine , Thanks)

1.A firm maximizes profit by operating at the level of output where:

a. average revenue equals average variable cost.

b. marginal revenue equals marginal cost.

c. average revenue equals average cost.

d. marginal revenue exceeds marginal cost by the greatest amount.

e. total costs are minimized.

2.Which of the following costs are always increasing as output increases?

a.Marginal Cost only

b.Variable Cost only

c.Total Cost and Variable Cost

d.Fixed Cost only

e.Total Cost only

3.Stefan has $50 to allocate between plays and movies. Plays cost $10 each and movies cost $4 each. Stefan maximizes his utility by buying tickets to 10 movies and 1 play. For his birthday, Stefan receives tickets to 2 plays. Which of the following statements is true?

a. Stefan is definitely on a lower indifference curve with the two tickets to the play.

b. Stefan is definitely now on a lower indifference curve than he would be if he had just received $20 cash.

c. Stefan could be worse off or better off with $20 cash instead of the two tickets to the plays.

d. Stefanwould definitely rather have two dragon fruity than the tickets to the play.

4.When the price of clothing was $2 per unit and the price of food was $5 per unit, Jill would spend her $100 budget on 25 units of clothing and 10 units of food. Now the price of food has doubled to $10 per unit, and Jill's income has increased by $60. Assuming convex indifference curves, which of the following statements is true?

a. Jill is just as well off as before the price change.

b. Jill is actually better off now than she was before.

c. Jill is worse off now than she was before.

d. No conclusions can be drawn regarding Jill's welfare unless we know her utility function.

5.Tommy rents office space for $12,000 per year. He uses the office to fill out tax return forms for his clients. He fills out 1,000 tax returns per year. If the owner of the building raises Tommy's rent to $13,000 per year, the marginal cost of filling out tax returns will

a. increase by $1

b. increase by $1000

c. increase by some amount that cannot be computed without more information

d. not change

6.A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called:

a. a budget line.

b. an isoquant.

c. an indifference curve.

d. a demand curve.