Question 16 (1 point)

Which of the following is NOT an example of implicit cost?

Question 16 options:

a	The effect of smoking on health
b	Monthly rent payments
c	Loss of interest payments by not putting money in a bank
d	Salary foregone during college education

Question 17 (1 point)

An attorney supplies 40 hours of work per week when her fee is $100 per hour, but supplies 60 hours of work per week when her fee rises to $120 per hour. Using the midpoint formula, her price elasticity of supply is equal to ________.

Question 17 options:

a	0.45
b	0.8
c	2.2
d	1

Question 18 (1 point)

Suppose a firm has many different possible short-run average total cost curves, representing different amounts of fixed inputs. The long-run average cost curve _________________ each of the short run average cost curves.

Question 18 options:

a	can be less than or greater than
b	is greater than
c	is less than or equal to
d	is the sum of

Question 19 (1 point)

Adam is a rational economic decision maker who enjoys eating ice cream from local shops. Ice cream is priced by the scoop, such that the marginal cost to Adam of the 3rd scoop of ice cream is $4. If Adam has chosen to eat only 2 scoops of ice cream, which of the following statements is true?

Question 19 options:

a	Adam's marginal benefit of consuming the 3rd scoop is greater than $4
b	Adam would have had more ice creams scoops if he was looking to maximize his total net benefit
c	Adam's marginal benefit of consuming the 3rd scoop is less than $4
d	At this price no consumer will buy 3 scoops of ice cream

Question 20 (1 point)

David's current salary is $20,000. He has two job offers from company X and company Y. The accounting and economic profit for David for taking each of these jobs compared to his current job are given below. What should David do?

Job Economic Profit Accounting Profit

X -$2000 $25,000

Y $1000 $22,000

Question 20 options:

a	Switch to Job X
b	Stay in his current job
c	Switch to either Job X or Job Y as both are equally good
d	Switch to Job Y