Question 8 333 pts S Marx,r purchased a stuffed animal toyr for $5. Aftera few weeks. someone offered her $100 for the toy. hilary refused. One can conclude that Mary's consumer surplus from the toyr is O at least $100. 0 $105. 0 At lea st $9 5. 0 less than $5. Question 9 Find the True or False of the following statements: A: The length of the short run is the same for all rms. B: The actual time length of the short run is determined by when diminishing marginal returns start. 0 A = True. B = True 0 A: False, B = False O A = True. B = False O A= False. B = True Question 11 333 pts Suppose that three isoquants that represent 10, 20, and 30 units of output are plotted on a graph and a straight line is drawn from the origin through the isoquants. If the portion of the line between the isoquants that represent 10 and 20 units of output is longer than the portion ofthe line between the isoquants that represent 20 and 30 units of output. then the rm represented by these isoquants 0 will maximize prots by producing 10 units of output. 0 is experiencing decreasing returns to scale. 0 has engaged in product innovation. 0 is experiencing increasing returns to scale. Question 12 3.33 pts Consider the following short-run production function: q = 5L2 - 1f3L3. At what level of L do diminishing marginal returns begin? 0 L=15 o L=0 O L=10 o L=s Question 13 3.33 pts Suppose the total cost of producing Tshirts can be represented as TC = 50 + 2:]. Which of the following statements is TRUE at all levels of production? 0 All of the above 0 MC - AVE: 0 MC > AFC O MC=AC Question 14 3.33 pts Which situation is most likely to exhibit diminishing marginal returns to labor? 0 a factory that increases the amount at machineryr and holds the number of workers constant Q a fat-tor}.r that had one worker and now has two 0 a factor}.I that obtains a new machine for ewerilir new worker hired O a factors.r that hires mam more workers and never increases the amount of machineri.f Question 15 Increasing marginal returns to labor might occur at low levels of labor input because of 0 increasing average costs. 0 differing factor pro portions. @- decreasing use of machinery and increasing use of technology. 0 increasing specialization of tasks. Question 17 A rm can minimize cost by O picking the bundle of Inputs where the isoquant is tangent to the isocost line. 0 All of the above. Q picking the bundle of Inputs where the last dollar spent on one gives as much extra output as the last dollar spent on any other input. Q picking the bundle of Inputs where the lowest ism-cost line touches the isoquant. Question 20 3.33 pts In the short run. the point at which diminishing marginal returns to labor begin is the point at which the marginal cost curve 0 is flat. 0 is downward sloping. O bottoms out. 0 pea ks