Question 412pts

Terry attends college and works part-time job in a drug store. She can work up to 40 hours each week, and is paid $9 per hour. The table below shows her utility from different levels of leisure and income. If Terry decides to work 20 hours per week, her total utility from both leisure and income would be:

Hours of leisure	Total Utility from leisure	Income	Total Utility from income
5	18	45	35
10	34	90	59
15	48	135	77
20	56	180	86
25	60	225	92
30	65	270	98
35	69	315	103
40	72	360	107

Group of answer choices

A. 142

B. 115

C. 110

D. 179

Flag question: Question 42Question 422pts

Which of the following is an important decision a firm makes?

Group of answer choices

a. what to produce

b. how to produce what it makes

c. how much to produce

d. all of the above.

Flag question: Question 43Question 432pts

Refer to the table below.

Quantity	Variable Cost (in dollars)	Fixed Costs (in dollars)	Total Costs (in dollars)	Average Variable Costs (in dollars per unit)	Average Total Costs (in dollars per unit)	Marginal Costs (in dollars per unit)
0	0	40	40	--	--	--
1	1	40	55	15	55	15
2	3	40	75	17.5	37.5	20
3	60	40	100	20	33.3	25
4	90	40	130	22.5	32.5	30
5	125	40	155	25	31	35
6	160	40	200	26.6	33.3	40

If the firm produces 4 units that it sells at a price of $30.00 each, what will its profits or losses equal?

Group of answer choices

A. losses equal $10

B. profits equal $10

C. profits equal $120

D. the firm breaks even

Flag question: Question 44Question 442pts

Mindy's company manufactures rubber balls used by elementary schools for playground activities. The table below sets out her firm's production cost information. Some values are missing. Which of the following statements is correct?

Quantity	Variable Cost	Fixed Cost	Total Cost	Average Variable Cost ($ per unit)	Marginal Cost ($ per unit)
0	0	40	40	0	-
1	5		B	5	E
2	15		C	D	F
3	A		60	20	G

Group of answer choices

A. A = 20; E = 45

B. C = 45; E = 45

C. A = 25; E = 5

D. C = 55; F = 10

Flag question: Question 45Question 452pts

Refer to the diagram above. In this instance, point m shown on the graph indicates

Group of answer choices

A. the point where profits will increase by increasing output

B. the lowest price at which the firm will produce in the short run

C. the profit-maximizing point where MR = MC

D. the profit-maximizing point where MR is less an MC

Flag question: Question 46Question 462pts

The information below sets out the estimated market shares for the widget manufacturing market.

Table A

Firm	Market Share
Company A	40%
Company B	30%
Company C	15%
Company D	10%
Company D	5%

If Company C were to acquire Company D, the Herfindahl-Hirschman index would be

Group of answer choices

A. 100

B. 95

C. 2850

Answer: D

Flag question: Question 47Question 472pts

Mary decides to take a vacation. If she does so, she will lose two weeks wages. She earns $1000 per week, but spends $50 a week to commute to work. The cost of the package tour she plans to purchase is $3000. What is her opportunity cost of her vacation?

Group of answer choices

A. $0

B. $3000

C. $5000

D. $4900

Flag question: Question 48Question 482pts

Sam is a single father with 2 children. He earns $15 per hour and can work up to 1,800 hours per year. If Sam does not earn any income at all, he receives government benefits totaling $20,000 per year. For every $1 of income he earns, his level of government support is reduced by $1. Which of the following statement best describes Sam's situation?

Group of answer choices

A. He has no monetary incentive to work.

B. He has a monetary incentive to work if he works more than 1800 hours.

C. He has a monetary incentive to work as long as he does not exceed 1800 hours

D. He has no monetary incentive to work more than 1200 hours.

Flag question: Question 49Question 492pts

For a negative externality, the private costs borne by those involved in an action are _____________________ the costs imposed on society as a whole. As a consequence, third parties not involved in the action __________________________.

Group of answer choices

A. less than; pay for some of the costs

B. the same as; do not bear any of the costs

C. more than; receive a social benefit.

D. less than; are not affected by it.

Flag question: Question 50Question 502pts

When a market __________________, the outcome is termed ___________________.

Group of answer choices

A. fails to allocate resources efficiently; externality avoidance

B. operates inside the production possibilities frontier; full employment

C. fails to allocate resources efficiently; market failure

D. is non-rivalrous and non-rivalrous; private goods