When firm was producing Q1 = 20 , its TC = 1875 . But when they increased output to 55 to meet new orders, all else equal, their TC increased to 2363. How much is their MC?

a. 17.94

b. 0.07

c. 13.94

d. None of the answers offered are accurate.

e. 11.15

Consider a short run production function for a sandwich shop operating out of a food truck at a busy tourist location, with L in # of workers/day and Q in output/day:

L Q 1 95 2 213 3 246 4 275 Which of the following reflects the APL when 2 workers are hired?

a. None of the answers offered are correct.

b. 82.0

c. 106.5

d. 96.8

e. 118.0

Assume wage is the only variable input, and wage per period is $33.51. If MPL of 12th worker equals 12, how much MC?

a. $3.07

b. Impossible to calculate without knowing the MPL of 11th worker.

c. $0.36

d. $2.23

e. $2.79

The following equations show competitive supply and demand for product Z:

Demand: P=1397-5.7Qd

Supply: P=390+2.3Qs

If a price ceiling is imposed at ______ there will be a shortage.

(round to two decimals in the final stage of calculation; beware rounding can produce small differences - choose the closest answer)

a. below 958.91

b. None of the answers offered are accurate.

c. below 679.51

d. above 679.51

e. exactly 679.51

At 162 units produced per period, a firm with AFC of 2.01 and AVC of 3.78 has what level of TC? Answer in $s/ period.

a. 937.98

b. 1106.82

c. 844.18

d. 325.62

e. 612.36

Which of the following costs could is the least likely be considered variable in the short run for a typical restaurant?

Select one:

a. ingredients

b. they are all variable in the short run.

c. wages

d. cost of energy

e. rent

A firm that has TFC=$ 385 per period and TC=$ 1125 , will at output of 42 per period have the AVC of __. Answers in $/unit.

a. 17.62

b. 26.79

c. 35.95

d. 19.38

e. None of the answers offered are accurate.

Assume the supply of botox injections can be administered only by rare, licensed professionals. People, of course, do not have to be botoxed but choose to (however unwisely). Who would bear most of the burden of per unit tax on botox injections?

a. Sellers because supply is less elastic

b. They would definitely share it equally.

c. Buyers because demand is less elastic

d. Sellers because supply is more elastic

e. Buyers because demand is more elastic

Assume that, ,initially, the market for gasoline was not taxed. Then a per unit tax was introduced, resulting in a price paid by buyers of $5.25 and a price received by sellers of $3.97 per unit (a litre). How much is the per unit tax?

a. whatever the price was before the tax minus $3.97

b. $-1.28

c. $5.25 minus whatever the price was before the tax

d. impossible to say without knowing the elasticities of S and D.

e. $1.28

Jeremy really likes Hugo Boss suits. He ends up paying $759 for them, and receives a consumer surplus of $344. What was his willingness to pay (marginal benefit) from those suits?

a. $-415.00

b. $1103.00

c. $759.00

d. $415.00

e. We cannot say without more information.