Price Quantity Demanded

$120

$218

$316

$414

$512

$610

$78

use the above table to answer the following questions

231.Refer to Table 8.2. What is the marginal revenue associated with a price increase from $3 to $4?

(A) $8

(B) $1

(C) $4

(D) $56

(E) $48

233.Linda is an artist who would like to open her own gallery. Currently she works at the art museum and earns

$19,000 in that position. If Linda wants to earn break-even economic profit with her own gallery, she must

earn enough total revenue to cover

(A) Her explicit production costs only

(B) Her implicit production costs and her forgone salary

(C) Her variable and fixed production costs

(D) Her explicit production costs and her foregone salary

(E) Her sunk costs only

232.The difference between economic profit and accounting profit is that economists recognize the

___________ costs, while accountants recognize only the _________ costs of operating a business.

(A) Implicit; explicit

(B) Implicit and explicit; implicit

(C) Variable and fixed; sunk

(D) Implicit and explicit; explicit

(E) Variable and fixed; fixed

234.To maximize profit, a firm must produce the output where the difference between _________ and

__________ is the greatest.

(A) Total revenue; total cost

(B) Total revenue; total variable cost

(C) Total product; marginal product

(D) Price; marginal cost

(E) Total revenue; average total cost

235.Economists typically assume that the goal of a firm is to

(A) Maximize utility

(B) Maximize output

(C) Maximize sales

(D) Maximize profit

(E) Maximize revenue

236.A firm is producing the profit-maximizing level of output when

(A) Total revenue equals total cost

(B) Marginal product equals marginal cost

(C) Marginal revenue equals price

(D) Price equals average total cost

(E) Marginal revenue equals marginal cost