Pauli's Pizza offers the following prices: one slice for $2, two slices for $3.50, three slices for $4.50, four slices for $5.00.

If a customer orders 3 slices, the marginal cost to the customer of the third slice is:

	$4.50
	$10
	$1
	$2

One month ago Mark got a one year membership at a gym located near his current office, the membership fee for the gym is non-refundable. Today Mark is offered a new job. The new company has a gym in its office that is free for all its employees to use. In deciding whether or not to stay at his current job or take the new job, how should Mark consider the gym membership fee he has already paid?

	He should not consider it in his decision as it is a sunk cost
	He should consider it in his decision as it is an explicit cost
	He should consider it in his decision as it is an implicit cost
	He should not consider it in his decision as it is an implicit cost

George makes custom guitars. He has increasing marginal costs and decreasing marginal benefits from making the guitars. Last month George produced 10 guitars. The tenth guitar cost $50 and had a marginal benefit of $40. How would you suggest George adjust his production this month?

Question 8 options:

	George should increase his production of guitars.
	George should reduce his production of guitars.
	George should consider producing ukuleles.
	There is not enough information to determine George's best course of action.

The long run is a planning period:

	over which a firm can consider all inputs as variable
	that is the same for all firms
	that is at least 1 year in length
	that must be over 1 month in length

Number of Workers	Burgers per hour
1	4
2	10
3	17
4	22
5	25

The table above provides the total number of workers and the resulting total output per hour for Burgers Unlimited, holding all other inputs constant.

What is the marginal product of the 4th worker?

	22
	5
	3
	4

The average total cost of baking 10 brownies is $10. The average variable cost of baking 10 brownies is $7. What is the fixed cost?

(Hint: You cannot directly calculate the fixed cost, you need to first calculate some other costs that will then allow you to calculate the fixed cost)

	$10
	$20
	$30
	$60

The average total cost of baking 5 cookies is 80 cents and the average total cost of baking 6 cookies is 70 cents. What is the marginal cost of producing 6th cookie?

(Hint: You cannot directly calculate the marginal cost, you need to first calculate some other cost(s) that will then allow you to calculate the marginal cost)

	10 cents
	20 cents
	70 cents
	80 cents

Which of the following is NOT true?

	At the minimum-cost output, the marginal cost curve crosses the average total cost curve
	At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is falling
	At output less than the minimum-cost output, marginal cost is less than average total cost and average total cost is falling
	At output greater than the minimum-cost output, marginal cost is greater than average total cost and average total cost is rising