Production Costs Using only figures from the table below, fill in as many blanks in the table as you can. Please round answers to the nearest whole number. To help you focus on reasoning, some reminders appear on the last page of this exam. Please glance at them before filling in the table below. Q FC VC TC MC ATC AFC AVC O 0 40 40 80 40 80 60 W N 160 200 4 120 10 Multiple Choice For the questions that follow, please choose the best answer. 1 . According to the theory of consumer choice in Chapter 5, decreasing consumption of a good by one unit, while holding consumption of other goods constant, should: a. raise the consumer's utility b. lower the consumer's utility C. raise the marginal utility of the good d. lower the marginal utility of the good e . a. and d. b. and c. 2. According to the theory of consumer choice in Chapter 5, increasing the price of a good (while holding a consumer's budget and the prices of other goods constant) should ultimately: raise the consumer's utility lower the consumer's utility C . raise the marginal utility of the good lower the marginal utility of the good e . a. and d. b. and c. g. a. and c. b. and d.A marshmallow rabbit costs $2 and a chocolate lamb costs $3. Your budget is $30. If you were to graph your budget set with QL (lambs) on the horizontal axis, and QR (rabbits) on the vertical axis: 3. What would be the coordinates of the vertical intercept of your budget set? a. (15, 0) b. [0, 15) c. [10, 0) d. [0, 10) e. [10, 15} f. (0, 30) g. None of the above 4. What would be the slope of the budget line? a. - ll 1 S b. -30 c. - 21'3 d. -3f2 e. 10 f. - ll 10 g. None of the above 5. What would the relative price of rabbits be? a. 22'3 b. 322 c. 2.330 d. 3290 e. None of the above 6. Which is the equation of the budget line in slope-intercept form? a. QL=-2r'3 Qanl b. QR=-3f2QL-- 15 c. QR=-2f3 QL--3{J d. QL=-2f3QR--15 e. QR=-3f2 QL -- 10 f . None of the above 7. 1f MUR and MUL are the marginal utilities of rabbits and of lambs, which of these expresses the equimarginal principle? a. MURI$3=MULJ$2 b. Mum\" MUL = $3f$2 c. MUL$2=MUR '33 d. MUL I MUR = $3J'S2 e. None of the above 8. Under the assumptions we have made in class, when a consumer is maximizing her utility, subject to her budget constraint, which of the following is no! true? She may consume different amounts of various goods. The marginal utility of one good must equal the marginal utility of the other good. She spends her entire budget. Her utility would rise if prices were to fall. The ratio of the marginal utilities of two goods equals the ratio of their respective prices. 9999'!\