1 02 : B2
s t udyque s t i onsf orc ha pt e r s8 , 1 0, 1 1
S.Ka da mbe mb
MULTI PLECHO HOI CEQU QUESTI ONS
F ol l o wt hes a me mei ns t r uc t i o nsa sg i v e nf o ro t he rs t udyque s t i o ns
Chapt er10 Se c t i on1 0. 1 1 . Mr .S we we e to pe ne dac a ndys t o r e . Her e nt e dabui l di ngf o r$ 3 0 , 0 0 0aye a r .Dur i ngt hefir s ty e a ro fo pe r a t i o n,S we we e t pa i d$ 4 0, 0 0 0t ohi se mp mpl o ye e s , $ 1 0, 0 0 0f orut i l i t i e s , a nd$ 2 0 , 0 0 0f org oo dsheboughtf r o mo t he rfir ms ms . Hi st o t a l r e v e nuewa wa s$ 1 3 5, 0 0 0 .S we we e t ' sb e s ta l t e r n a t i v et or unni ngt hi sc a n dys t o r ei st owo r kf o rWa Wa l r ta sas a l e s -Ma as s oci at ef or$15, 000ayear .Whati sSwe weet ' sec onomi mi cpr ofit ? 1)_______ A)ze r oB)$20, 000
C)$35, 000
D)-$ 2 0 , 0 0 0
2)Anor pr o fitf oras e l f mp mpl oyedent r epr eneuri s ma l -e I . anoppor t uni t yc os t . I I . par toft hei mpl i c i tr ent alr at eoft hef undsi nves t edi nt hebus i nes s . A)onl yI
B)onl yI I
2)___ ___ _
C)bot hIa ndI ID)ne i t he rIno rI I
3 )Ane l e c t r i c i a nqui t sh e rc ur r e ntj ob ,whi c hpa y s$ 40 , 0 0 0pe ry e a r .S hec a nt a keaj o bwi t ha no t he rfir mf or$ 4 5 , 0 0 0pe r y e a ro rwo r kf o rh e r s e l f .Theo ppo r t uni t yc o s to fwo r k i ngf o rh e r s e l fi s 3 )_ _ _ _ _ __ A)$4 5, 0 00.
B)$5, 0 00.
C)$85, 000.
D)$40, 000.
4 )Anor mal pr ofiti s 4)__ __ __ _ A)t hepr ofitafirm makeseac hyear . B)pa r toft hei mpl i c i tr e nt a lr a t eofc a pi t a l . C)t hea v e r a g er e t ur nf o re nt r e pr e ne ur s h i p. D)t her e v e nuer e ma ma i ni ngaf t e ra l lo ppor t uni t yc os t sh a veb e e npa i d. 5 )Whi c hoft hef o l l o wi wi nga r et woc o mp mpo ne nt so ft heo ppo r t uni t yc o s to fus i ngc a pi t a la l r e a dyowne db yt hefir m?5 ) _______ A)ec onomi mi cpr ofitandnorma malprofit B)i mpl i c i tr e nt a lr a t ea nde c o nomi cpr ofit C)e c o no mi mi cde pr e c i a t i o na ndf o r g onei nt e r e s t D)e x pl i c i tr e nt a lr a t ea nde c onomi cc o s t s 6 )Mr .S we we e to pe ne dac a ndys t or e .Her e nt e dab ui l di ngf o r$ 3 0 , 0 0 0aye a r .Dur i ngt h efir s ty e a ro fo pe r a t i on, S we we e tpa i d $ 4 0 , 0 0 0t ohi se mp mpl o ye e s , $ 1 0 , 0 0 0f oru t i l i t i e s , a nd$ 2 0 , 0 0 0f org oo dsh eb oughtf r o mo t h e rfir ms ms . Hi st o t a lr e v e nuewa wa s $ 1 35 , 0 00 .S we we e t ' sb e s ta l t e r na t i v et or unni ngt hi sc a ndys t or ei st owo wo r kf orWa l r ta sas a l e sa s s o c i a t ef or$ 1 5 , 0 0 0aye a r . -Ma Wha ti sS we e t ' st o t a lo ppo r t uni t yc o s t ?6 )_ _ _ _ _ _ _ A)$1 00, 000
B)$115, 000
C)$15, 000
D)$135, 000
7 )Edi saf r e e l a nc ewr i t e rwhoc oul dwo r kf orane ws ws pa pe ra t$ 2 5, 0 0 0aye a rbuti ns t e a dwo r k sf o rhi ms e l ff o r$ 4 1 , 0 0 0a y e ar .Hi so nl ybus i ne s se x pe ns e sa r e$ 1, 0 00f orwr i t i ngma t e r i a l sa nd$ 1 2, 0 0 0f orr e nt .Ed' sn or ma ma lpr o fiti s$ 1 , 0 00 .Ed' s
ec onomi cprofitf r om wor ki ngasaf r ee l ancewr i t eri s A)$1 , 00 0.
Me t hod T-1 T-2 T-3 T-4
B)$25, 000.
C)$15, 000.
La b orr e q ui r e d ( pe r s on-hours) 20 0 15 0 15 0 10 0
7)_____ __
D)$2, 0 00.
Ca pi t a lr e q ui r e d ( mac hi ne-hours) 100 150 130 200
8 )S e ct i on1 0. 2 Thet a bl ebe l o ws h owsf oura l t e r n a t i v et e c h ni que sf o ra s s e mb l i ngac a r .Thec os to fl a bo ri s$ 2 0pe rh our ,a ndt hec o s to f c a pi t a li s$ 1 0pe rho ur .Whi c ho ft hef ourt e c h ni que sf ora s s e mbl i ngac a ri se c o nomi c a l l ye ffic i e nt ? 8 )_ _ _ __ _ _ A)T-1 B)T-2 C)T-3 D)T-4 9 )Afir mt ha ti st e c h no l o gi c a l l ye ffic i e nt9 )_ _ _ _ _ _ _ A)mus b ee c ono mi c a l l ye ffic i e nt ,b utafir mt ha ti se c o nomi c a l l ye ffic i e nti sn ota l wa y st e c hno l o gi c a l l ye ffic i e nt . t B)i sn ota l wa y se c o no mi c a l l ye ffic i e nt ,b utafir mt ha ti se c o no mi c a l l ye ffic i e ntmus a l wa y sbet e c h no l o gi c a l l ye ffic i e nt . t C)i sno ta l wa y se c o no mi c a l l ye ffic i e nt ,a ndafir mt ha ti se c ono mi c a l l ye ffic i e nti sn ota l wa y st e c hno l o gi c a l l ye ffic i e nt . D)mus b ee c o no mi c a l l ye ffic i e nt ,a ndafir mt ha ti se c o no mi c a l l ye ffic i e ntmus a l wa y sbet e c h nol o gi c a l l ye ffic i e nt . t t 10)Whi choft hef ol l owi ngi scor r ec t ? 10)______ A)I fafir mi st e c hnol ogi c a l l yeffic i e nt ,i ti sa l wa ysp r oduc i nga tt hel o we s tc o s t so fpr o duc t i on. B)I fafir mi se c o nomi c a l l ye ffic i e nt ,i ti sa l wa yst e c hnol ogi c a l l ye ffic i e nt . C)I fafir mi st e c hnol ogi c a l l yeffic i e nt ,i ti sa l wa yse c o nomi c a l l ye ffic i e nt . D)No neo ft hea b ov ea ns we r si sc o r r e c t . 11 )Whi c hoft hef ol l owi ngi sac or r ec ts t at ement ? 11 )__ __ __ A)Technol ogi cal effici encydependsonl yonpr oduct i onmet hods ,whi l eec onomi ce ffici encydependsont hecos t sof r e s our c e s . B)Technol ogi cal effici encydependsont hecos t sofr es our ceswhi l eeconomi ceffici encydependsononl ypr oduct i on met hods. C)Economi ce ffici encydefini t el yocc ur swhenafir m cannoti ncr eas eproduct i onwi t houtus i ngmorer es our ce s . D)a l loft hea bo ve
Me t hod T-1 T-2 T-3 T-4
La b orr e q ui r e d ( pe r s on-hours) 20 0 15 0 15 0 10 0
Ca pi t a lr e q ui r e d ( mac hi ne-hours) 100 150 130 200
1 2 )Thet a bl eb el o ws h owsf o ura l t e r n a t i v et e c hni que sf o ra s s e mb l i ngac a r .Whi c hoft hef ourt e c hni que sf o ra s s e mbl i nga c a rc a n no tb ee c o no mi c a l l ye ffic i e ntwi t ha n yi n putpr i c e s? 1 2 )_ _ _ _ _ _ A)T-1 B)T-2 C)T-3 D)T-4
13 )Whi c hoft hef ol l owi ngi st r ue? 13 )__ __ __ A)I fpr o duc t i o ni st e c hno l o gi c a l l ye ffic i e ntt he ni tmus tb ee c o nomi c a l l ye ffic i e nt . B)Economi ce ffici encydependsonl yonwhati sf eas i bl e. C)Economi ceffici encyoccur si ft hemaxi mum f eas i bl eamountofout puti sac hi evedf r om agi venquant i t yofi nput s . D)No neo ft hea bo v es t a t e me nt sa r ec o r r e c t .
La b orr e q ui r e d ( pe r s on-hours) 20 0 15 0 15 0 10 0
Me t hod T-1 T-2 T-3 T-4
Ca pi t a lr e q ui r e d ( mac hi ne-hours) 100 150 130 200
1 4 )T het a bl ebe l o ws h owsf o ura l t e r n a t i v et e c hni que sf o ra s s e mb l i ngac a r .Thec o s tofl a bo ri s$ 2 0pe rh our ,a ndt hec o s t ofc a pi t a li s$ 10pe rhour .Whi c hoft hef ourt e c hni que sf ora s s e mbl i ngac a ri sno tt e c hnol ogi c a l l ye ffic i e nt ? 1 4 ) ______ A)T-1 B)T-2 C)T-3 D)T-4 1 5)S e c t i on1 0. 3 Anadvant ageoft hec or por at ef or m ofor gani zat i oni st hat
15)___ ___
A)acor pora t i oncannotgobankrupt . B)o wne r sha v eunl i mi t e dl i a bi l i t y . C)o wne r sh a vel i mi t e dl i a bi l i t y . D)t hema na g e me nts t r uc t ur ei su s ua l l ys i mpl e . 16 )Bymaki ngmos tofi t sempl oye esowner soft hec ompany, Uni t edAi r l i nesat t empt edt o A)a ddr e s st hepr i nc i pa l gentpr obl em bet wee nt hewor ker sandmanager s . -a B)c h ang ei t sb us i ne s so r g a ni z a t i onf r om ac or p or a t i ont oapa r t ne r s h i p. C)c o pewi t ht heunl i mi t e dl i a bi l i t ypr o bl e m. D)i ncr eas et herol eoft hecommands ys t em i nmanagi ngt hefir m.
16 )__ __ __
1 7 )Whi c hoft hef ol l o wi ngt ype so fbus i ne s so r g a ni z at i onha v el i mi t e dl i a bi l i t y? I . pr opr i et ors hi p I I .pa r t ne r s h i p I I I . c or por a t i on 17)_ _____ A)I I Ionl y
B)I I ,I I Ionl y
C)I ,I I ,I I I
D)I ,I Ionl y
18 )Ac ommands ys t em i samet hodofc oor di nat i ngafir m' spr oduc t i ver es ourc est hatuse s A)amanage r i alhi er ar c hy . B)gove r nmentr egul at i ons . C)di s c i pl i nea n dpuni s hme nt . D)s u r v i v a lo ft hefit t e s t .
18 )__ __ __
1 9 )Whi c hoft hef ol l o wi ngf or mso fbus i ne s so r g a ni z a t i oni sl i k e l yt os uffe rmos tf r o mt hepr i nc i pa la ge ntpr o bl e m be t we e nt heowne r sandmanage r soft hebus i ne s s ? 1 9)__ ____ A)pa r t ne r s h i ps
B)c or p or a t i ons C)pr opr i e t o r s h i ps D)Al la r ee q ua l l yl i k el yt os uffe rf r o mt hepr i nc i pa l gentpr obl em. -a 2 0 )Ac h i e fpur p os eo fl o ng-t e r mc o nt r a c t si st oi mpr o v eag e nt s '2 0 )_ _ _ _ _ _ A)i nf or ma t i on.B)s e c ur i t y . C)c ont r oloverpri nci pal s . D)i nce nt i ves . 21)Af or m ofbus i nesswhos eprofit sa r et axe dt wi c ei s 21)_____ _ A)ac o r po r a t i o n. B)apa r t ne r s h i p. C)apr opr i e t or s h i p. D)e i t he rapr opr i e t o r s h i po rapa r t ne r s hi p,de pe ndi ngo no t he ri nf or ma t i o n. 2 2)S ec t i on1 0. 4 I fa ni ndus t r yi smo no po l i z e db yo nefir m,t hef o ur r mc onc e nt r a t i onr a t i oeq ual s -fi
22 )__ _ __ _
A)10 0per c ent .B)1per c ent . C)40per c ent . D)25pe r c ent . 23)I nmonopol i s t i cc ompet i t i on,t her ear e______ __. 23)_____ _ A)ma n yfir ms , e a c hs e l l i nga ni de nt i c a lpr o duc t B)ma n yfir mss e l l i ngpr o duc t sf o rwhi c hnogo ods u bs t i t ut e se x i s t C)ma nyfir mss e l l i ngs i mi l a rb uts l i ght l ydi ffe r e ntpr o duc t s D)as ma l lnumb e ro ffir ms , e a c hs e l l i nga ni de nt i c a lpr o duc t 2 4 )Thema r k e ts t r u c t ur ei nwhi c hal a r g enumb e ro ffir msc o mpe t eb yma ki ngs i mi l a rb uts l i ght l ydi ffe r e ntpr o duc t si s c al l ed 24)___ ___ A)monopol y. B)per f ec tc ompet i t i on. C)ol i gopol y. D)monopol i s t i cc ompet i t i on.
Compa ny A B C D E F G H I J K
S a l e s ( mi l l i onsofdol l a r s ) 12 0 89 53 1 45 2 26 9 12 5 25 89 15 5 69 85
2 5 )Thet a bl ea bo ves h o wss a l e so ft hefir msi nt hepe tf o odi ndus t r y .Wha tt y peo fma r k e ti st hi s ?2 5 )_ _ _ _ _ _ A)monopol y B)ol i gopol y C)monopol i s t i cc ompet i t i on D)per f ec tc ompet i t i on
Compa ny A B C D E F G H I J K L M N O P Q R S T
S a l e s ( mi l l i onsofdol l a r s ) 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0
2 6 )Thet a bl ea b o vel i s t st hema r k e ts h a r e so ft het we nt yma ke r so fpe r s o na lc o mput e r s . Ba s e dupo nt heHe r finda hl Hi r s c hma nI nde xf o rt hi si ndus t r y , t heJ us t i c eDe pa r t me ntwo ul d2 6 )_ _ _ _ _ _ A)beagai nstanyt wofir msmer gi ng. B)c ons i de rt hema r k e to l i gopol i s t i c . C)r e g ar dt hei ndus t r ya shi ghl yc o nc e nt r a t e d. D)r e g ar dt hei ndus t r ya sc o mpe t i t i v e . 2 7 )Thea i rt r a v e lma r k e t ,whi c hi sdo mi na t e db yaf e wl a r g efir ms , i sa ne x a mpl eo f A)anol i gopol i s t i cmar ket . B)amonopol i s t i ca l l yc ompet i t i vemar ket . C)ape r f ec t l yc ompet i t i vemar ke t . D)amonopol ymar ke t .
2 7 )_ _ _ _ _ _
2 8)S e c t i on1 0. 5 Afir m findst hati tcanpr oduces ever aldi ffer entgoodsatal oweraver agecos tbyus i ngs omeoft hesamepr oduct i on f a c i l i t i e st ha ni tc o ul di fi tpr o duc e de a c ho ft hego odswi t hs e pa r a t epr oduc t i onf a c i l i t i e s . Thi sfi r mi s 2 8 )_ _ __ _ _ A)gai ni ngeconomi esofs cal e. B)gai ni ngeconomi esofsc ope. C)i ncur r i ngdi s ec onomi esofs c al e. D)gai ni ngec onomi esoft ea m produc t i on. 29)Fi r msar eof t enmor eeffic i entt hanmar ket sasc oor di nat or sofec onomi ca ct i vi t ybec aus e A)fir msdon' tr el yonec onomi esofs cal ewhi l emar ket sdo. B)ma r k e t sc a nno tc o o r di na t epr o duc t i o n. C)fir m coor di nat i oni sal waysmoreec onomi cal l yeffici entt hanmar ketcoor di nat i on. D)fir msc a na c hi e v el o we rt r a ns a c t i o nc o s t s .
29)_____ _
30)Whi choft hef ol l owi ngc anl eadt oafir m bei ngmor eeffic i entt hatamar ket ?Afir m ca nhave I . ec onomi esofs c al e. I I . ec onomi esofs cope. I I I . l owert r ans act i onscos t s . 30)______ A)I ,I IandI I I B)IandI I
C)I I Ionl y
D)I IandI I I
31)WhenFat zconf ec t i oner ycanl owert hecostofmanuf act ur i ngandpackagi ngapoundofcandybydoubl i ngt he quant i t ymanuf ac t ur edandpac kagedeac hday ,i twi l lac hi eve 31)_____ _ A)e c onomi esoft ea m pr oduc t i on. B)ec onomi esofs c al e. C)ec onomi esofs cope.D)al loft heabove 3 2)Ec onomi e sofs c opee xi s twhen 32 )__ __ __ A)afir m hi r e ss pe c i a l i z e dr e s o ur c e st opr o duc ear a ng eofg oo dsa n ds e r vi c e s . B)t het o t a lc os tofpr o duc t i onf a l l sa st heout puti nc r e a s e s . C)t hec os tofpr o duc i ngauni tofagoodf a l l sa si t so ut puti nc r e a s e s . D)afir m us esout s our ci ngt opr oduceagoodors er vi ce . 33)TacoBel lpr oduce sbot ht acosandbur r i t osbecausewheni tdoess o,TacoBel lexper i ences A)i ncr eas i ngnor malpr ofit . B)dec r eas i ngs c opeofc ost s . C)ec onomi esofs c ope.D)ec onomi esofs c al e.
33)______
ESSAY.Wr i t eyouransweri nt hespacepr ovi dedoronase par at esheetofpaper . 3 4 )T wouni v e r s i t ygr a dua t e s , Bi l la ndS t e v e ,wor ke df ora na dv e r t i s i nga ge nc yata na nnua ls a l a r yof$ 4 0, 0 0 0e a c hf or3 y e ar sa f t e rt he ygr a dua t e d. The n,t he yde c i de dt oqui tt he i rj obsa nds t a r tapa r t ne r s hi pt ha tde s i gnsa ndbui l dsWe bs i t e s . The yr e n t e da no ffic ef o r$ 1 2 , 0 0 0ay e a ra n db oug htc a p i t a lf o r$ 3 0 , 0 0 0 .T opa yf o rt hee q ui pme nt ,Bi l la ndS t e v ebo r r o we d mone yf r o m aba nka ta na nnua li nt e r e s tr a t eof6pe r c e nt .Dur i ngt he i rfir s ty e a rofope r a t i on,t hepa r t ne r s ' t o t a lr e v e nue wa s$ 1 0 0, 0 0 0.Thema r k e tv a l ueoft he i rc a pi t a la tt hee ndoft hey e arwa s$ 2 0 , 0 0 0. I fBi l la ndS t e v edono tde s i gnWe b pa ge s ,t he i rb es ta l t e r na t i ve sa r et or e t ur nt ot he i rpr e vi ousj ob. a) Whati st hefir m' sec onomi cdepre c i at i on? b) Wha tar et hepa r t ne r s hi p' sc os t s ? c) Whati st hefir m' se conomi cprofiti nt hefir s tyearofoper at i on?
Techni que A B C D E
Labor ( h o u r s ) 120 80 60 30 20
Ca pi t a l ( uni t s ) 10 21 20 22 30
3 5 )F a s t e r Chi p,I nc . i sc o ns i de r i ngfiv ea l t e r n a t i v et e c hni que sf ora s s e mbl i ngpe r s o na lc o mput e r s .Thet a bl es ho wst he a mo unt so fl a bo ra n dc a pi t a lr e q ui r e db ye a c hoft he s et e c h ni q ue st oma ke1 0c o mput e r sad a y .La bo rc o s t s$ 1 5a nho ur a ndc a pi t a lc o s t s$ 1 00auni t . a) Whi cht ec hni quesar et ec hnol ogi cal l yeffici entandwhi char enot ?Expl ai nyourans wer . b) Whi c ht e c hni quei se c onomi c al l ye ffic i e nt ?Expl ai n. c )I fF a s t e r Chi pus e si t sp l a nti nMe x i c o ,i tc a nl o we rt hel a bo rc o s tt o$ 1 0a nho ur .Whi c ht e c h ni q uewi l lt hec o mpa ny us ei nMexi co?Expl ai n.
CHAPTER8QUES TI ONS MULTI PLECHOI CE.Choos et heoneal t er nat i vet hatbes tc ompl et est hes t at ementoranswer st heques t i on. 3 6)Se c t i on8 . 1 Ut i l i t yi sbe s tdefine das
36 )__ ____
A)t hes a t i s f a c t i o nf r o mc o ns u mi ngago od. B)t hepr i c eo fag oo d. C)t hepr a c t i c a lus e f ul ne s so fagood. D)t heamountonei swi l l i ngt opayf oragood. 3 7 )Ac c o r di ngt ot hepr i nc i pl eofdi mi ni s h i ngma r g i na lut i l i t y , a st hequa nt i t yofag oo do rs e r v i c ec o ns u me di nc r e a s e s , t ot alut i l i t y 37 )__ __ __ A)de c r e a s e s . B)i nc r e a s e s .b uta tade c r e a s i ngr a t e . C)i sunc ha ngi ng. D)i sz e r o. 3 8 )" Ir e a l l ye nj o ywa t c hi ngmo vi e s . Thefir s tonei sb es t .Af t e rt ha tIs t i l le nj o ymo vi e sbutt hel a s tonei sno ta smuc hf un t owa t c ha st heonebe f o r ei t . "Thi ss t a t e me ntr e fle c t st he3 8 )_ _ _ __ _ A)pr i nc i pl eofdi mi ni s h i ngma r g i na lut i l i t y . B)pr i nc i pl eofdi mi ni s h i ngt o t a lut i l i t y . C)l awofs uppl y. D)pr i nci pl eofi ncr eas i ngmar gi nalut i l i t y.
Qua nt i t y ( b o x e s ) 0 1 2 3 4
T o t a l ut i l i t y 0 30 50 66 ?
Mar gi nalut i l i t y X 30 20 16 12
3 9 )Thet a bl ea bo vegi v e sAndy ' su t i l i t yf r o m po pc o r n .Andy ' st o t a lut i l i t yf r o mf o urb o x e so fp opc o r ni s3 9 )_ _ _ _ _ _ A)70 . B)82. C)66 . D)7 8.
Qua nt i t y 0 1 2 3 4 5 6
Fr i t os T o t a l ut i l i t y 0 40 75 105 130 150 165
Qua nt i t y 0 1 2 3 4 5 6
Fr ui tdr i nks T o t a l ut i l i t y 0 50 95 1 35 1 70 2 00 2 25
4 0 )Thet a bl ea b ov es h owst het o t a lut i l i t yf r o mt het wogo odsF r e ddyl i k e st oc o ns u me .S uppo s et ha tF r e d dyha sa l r e a dy e a t e n5b agso fF r i t o s .I fhec o ns ume so nemor eba g,hi sma r g i na lut i l i t ywi l l 4 0 )_ _ _ __ _
A)e qua l40 . C)equal35 .
Qua nt i t y 1 2 3 4 5 6 7
B)e qua l15. D)dependont hepr i c eoft heex t r abag.
Magaz i ne s Mar gi nal ut i l i t y 50 42 34 26 18 10 4
Qua nt i t y 8 10 12 14 16 18 20
Choc ol at eba r s Mar gi nal ut i l i t y 26 23 20 17 14 11 8
4 1)Se c t i on8 . 2 S on ya ' sb udg e tf o rma g a zi ne sa n dc h oc o l a t eba r si s$ 5 0 .He rma r gi na lut i l i t yf r o mt he s ego odsi ss ho wni nt het a bl ea bo ve . Thepr i c eo fama ga z i nei s$ 5a ndt hepr i c eo fac h oc o l a t eb ari s$ 2 . 5 0 .S on yac ur r e nt l ybuys3ma ga z i ne sa n d1 4c hoc o l a t e bar s .Tomaxi mi zehe rut i l i t y , s hes houl d41)____ __ A)buymor ec hocol at ebar sandf ewermagazi nes. B)buymoremagazi nesandf ewerchocol at ebar s . C)buymor eofbot hgoods . D)s t a ywi t ht hec u r r e n tc o mb i na t i o no fg oo ds . 4 2 )Ka t i eha sac hoi c eo fs pe ndi ng$ 6 . 0 0f ora n ot he rh a mb ur g e r ,whi c hha sama r g i na lut i l i t yof3 0 ,o r$ 9 . 0 0f o ra no t he r pi zza.Forhert ochoos et hepi zza,i twoul dhavet ohaveamar gi nalut i l i t yofatl eas t 42)______ A)31 . B)30. C)46 .us eMU/Pequal i t yr ul e D)9.
Qua nt i t y 3 4 5 6 7 8 9
Ma r g i na lut i l i t yof Ma r g i na lut i l i t yof DVDr ent al s movi es 100 152 90 150 80 147 70 143 60 140 50 135 40 128
4 3 )Be c k yde c i de st os pe nd$ 5 0pe rmo nt ho nDVDr e nt a l sa n dmo vi et i c k e t s . He rma r g i na lut i l i t ys c h e dul e sf r o mt he s e t wogoo dsa r es h owni nt het a bl ea bo ve .Thepr i c eo faDVDr e n t a li s$ 2 . 5 0 ,a ndt hepr i c eo famo vi et i c k e ti s$ 5 . Be c k y maxi mi zesherut i l i t yi fs her ent s_______ _DVDspermont handbuys________movi et i cket spermont h.43)______ A)5; 7 B)4;8 C)8; 6 D)6 ;7 4 4 )J e nn yb uy ss o da sa n dpo pc o r n .S oda ss e l lf o r$ 1a ndpo pc o r ns e l l sf o r$ 2aba g.Cur r e n t l ys h ei si nc o ns u me r
e qui l i br i um,wi t ht hema r g i na lut i l i t yf r om he rl a s tdol l a rs pe ntonpopc o r ne qua lt o10 0uni t so fut i l i t y .Thema r g i na l ut i l i t yf r om herl as tdol l ars pentons odasi s 44)______ A)2 0uni t sofut i l i t y . B)100uni t sofut i l i t y . C)5 0uni t sofut i l i t y .Appl yMU/Pe qua l i t yr ul e D)3 0uni t sofut i l i t y . 45)Whenaconsumers pendsal lofhi sorheri ncomeandconsumesabundl eofgoodss ucht hatt hemar gi nalut i l i t yper dol l a rf r o ma l lgoodsi se qua l ,t he nt h e 4 5)_ __ _ __ A)c o ns u me ri si nhi so rh e rc o ns u mpt i o ne q ui l i b r i um. B)c o ns ume r ' st o t a lut i l i t yi sma xi mi z e d. C)ma r gi na lut i l i t i e sf ore goodar emaxi mi ze d. a c h D)Bot hans wer sAandBar ec orr ec t . 4 6 )Whi c hoft hef o l l o wi ngoc c urwhe nape r s o nma x i mi z e su t i l i t y ? I . Themar gi nalut i l i t yofeac hgoodboughti se qual . I I . Thehi ghe s tl e ve lofut i l i t yi sa t t a i ne d. I I I . Al lofaper s on' sbudgeti ss pent . 46)______ A)IandI I I
B)I IandI I I
C)IandI I
D)I ,I IandI I I
4 7 )Asl onga st hema r g i na lut i l i t ype rdol l a rf r o m pi z z ai sg r e a t e rt ha nt hema r g i na lut i l i t ype rdol l a rf r o ms o da ,t he nt o maxi mi zeut i l i t yacons umerwi l lbuy 47)___ ___ A)l e s spi z z aandl e s ss o da . B)equalamount sofpi zzaands oda. C)morepi zzaandl es ss oda. D)mo r es o dat oe q ua l i z et hema r gi na lut i l i t ype rdo l l a rb e t we e ns o daa ndpi z z a . 4 8 )S e c t i on8 . 1budge tl i ne S uppos eJ i l l ' sc o ns umpt i onbundl ei sma deupo f2go ods , a ppl e sa ndb ot t l e so fj ui c e . I ft hepr i c eo fa na ppl ei nc r e a s e s , t he nJ i l l ' sbudge tl i newoul d 4 8 )_ _ __ __ A)s hi f tt o wa r dst heor i gi nonbo t ht hea ppl e sa ndbo t t l e so fj ui c ea x e s . B)notchange. C)s hi f ta wa yf r o mt heor i gi nont hebo t t l e so fj ui c ea xi so nl y . D)s h i f tt o wa r dst heor i gi no nt hea ppl e sa x i so nl y . 4 9 )Ape r s o n' sc o ns umpt i o npo s s i bi l i t i e si sde fine db yt hebudg e tl i nebe c a us e 4 9 )_ _ _ __ _ A)i tmar kst heboundar ybet weenwhati sa ffor dabl eandunaffor dabl e. B)a l lc o ns ume r smus tc o ns u meo nt he i rb udg e tl i ne . C)i tma r kst heb ounda r yb e t we e nwha tc a nbepr o duc e da ndwha ti suna t t a i na b l eg i v e nt hec ur r e nts t a t eo ft e c h no l o gy a ndr e s o ur c e s . D)i tr e pr e s e nt st hei ndi vi dua l ' spr e f e r e nc ef ordi ffe r e ntc o mbi na t i onso fgoods . 5 0 )T om' sc o ns umpt i onpos s i bi l i t i e si sde fine db y 5 0 )_ _ _ __ _ A)t hepr i c e so ft heg oo dst ha thec o ns u me so nl y . B)hi spr e f e r e nc e sf o rc o ns u mpt i o no ft heg oo dst ha thec o ns u me s .
C)hi si nc o meo nl y . D)hi si ncomeandt hepr i ce soft hegoodst hatheconsumes . 5 1)Budge tl i ne sa r edr a wnonadi agr am wi t ht he 5 1)__ __ __ A)qua nt i t yofo nego odo nt hev e r t i c a la x i sa n dt hequa nt i t yofa no t he rg oo do nt heho r i z ont a la x i s . B)pr i c eo fo nego odont hev e r t i c a la x i sa ndt hepr i c eo fa no t he rgo odont heho r i z ont a la xi s . C)pr i c eoft hegoodont heve r t i c a la xi sa ndi t squa nt i t yont hehor i z ont a la xi s . D)qua nt i t yoft hegoodont heve r t i c a la xi sa ndi t spr i c eo nt hehor i z ont a la xi s . 5 2 )Al lpo i nt sb e l o wt heb udg e tl i nea r e5 2 )_ _ _ _ _ _ A)affordabl e. B)pr e f e r r e dt oe ve r ypo i nto nt hebudg e tl i ne . C)i nf e r i ort oe ve r ypoi ntont hebudge tl i ne . D)Answer sAandCar ec or r ec t . 53)Al ongagi venbudgetl i ne, 53)_____ _ A)pr i c e sf a l la ndr e a li nc o mei sc o ns t a nt . B)pr i c e sa ndr e a li nc o mebo t hde c r e a s e . C)pr i c e sa ndr e a li nc o mea r ec o ns t a nt . D)r e a li nc o mede c r e a s e sa ndpr i c e sa r ec o ns t a nt . 5 4 )Er ni eha sa ni nc o meo f$ 4 0whi c hhepl a nst os pe ndo nc o o ki e sa n dmi l k .Thepr i c eo fmi l ki s$ 1pe rg a l l o n,a ndt he pr i c eo fc o oki e si s$ 2pe rdo ze n.I fEr n i eb uys1 2g a l l onso fmi l k ,ho w ma nydoz e nso fc o oki e swi l lheb uyi fhes p e ndsa l l ofhi si ncome? 54)___ ___ A)14 B)20 C)28 D)1 2
SECTI ON 8 . 3PREDI CTI ONS 55)Thepr edi ct i onsofmar gi nalut i l i t yt heor y
55)______
A)c o nt r a di c tt hei de at ha tt hes uppl yc u r v es l o pe supwa r d. B)s uppor tt hei deat hatt hedemandcur ves l opesdownwar d. C)cont r adi ctt hei deat hatt hedemandcurves l opesdownwar d. D)s upportt hei deat hatt hesuppl ycurves l opesupwar d. 5 6 )T e ddybuy so nl yc ho c o l a t ec h i pc o o ki e sa ndho tc h oc o l a t ea n ds pe ndsa l lo fhi si nc o meo nt het woi t e ms . Whe nt he pr i ceofacooki er i s es .Acc or di ngt omar gi nalut i l i t yt heor y, Teddywi l lbuy 56)______ A)f e we rc o oki e sa n dmo r eh otc h oc o l a t e ,whi c hde c r e a s e shi sma r g i na lut i l i t yf r o mc o oki e sa n di nc r e a s e shi sma r g i na l ut i l i t yf r o m hotc hoc ol a t e . B)mor ec o oki e sa ndl e s sho tc hoc o l a t e ,whi c hi nc r e a s e sh i sma r g i na lut i l i t yf r om c o oki e sa ndde c r e a s eh i sma r g i na lut i l i t y f r o m ho tc h oc o l a t e . C)f e we rc o oki e sa n dmo r eho tc h oc o l a t e ,whi c hi nc r e a s e shi sma r g i na lut i l i t yf r om c o oki e sa ndde c r e a s e shi sma r g i na l ut i l i t yf r o m ho tc h oc o l a t es ot ha tMUpe rdo l l a ronbo t ht heg oo dsi st hes a mea f t e rt hepr i c ec ha ng e . D)mo r ec o oki e sa ndl e s sho tc h oc o l a t e ,whi c hde c r e a s e shi sma r g i na lut i l i t yf r o mc o oki e sa ndi nc r e a s e shi sma r g i na l ut i l i t yf r o m hotc hoc ol a t e . 57)Whent hepr i c eofpopcor nf al l s ,bef or et her ei sanychangei ncons umpt i on, t he A)ma r g i na lut i l i t yofpopc o r nde fini t e l yi nc r e a s e s . B)e nt i r et o t a lut i l i t yofpopc or nc ur v ede fini t e l ys hi f t sr i ght wa r d.
57)_____ _
C)t o t a le x pe ndi t ur eonpopc o r nde fini t e l yr i s e s . D)ma r gi na lut i l i t ype rdol l a rf r om popc o r nde fini t e l yi nc r e a s e s . 5 8 )Theo nl ygo odsy ouc o ns u mea r epi z z aa nds o da .Bo t ha r en or ma lg oo ds . F ory ou,pi z z aa nds o daa r es ub s t i t ut e s . Whi choft hef ol l owi ngl eadsyout obuymoreofb go ods ? 58)____ __ o t h A)Thepr i ceofapi zzaf al l s . C)Thepri c eofas odaf al l s .
B)Youri ncomei ncr eas es . D)Bot hanswer sAandBar ec or r ec t .
5 9 )Ac c o r d i ngt oma r gi na lut i l i t yt he o r y , ar i s ei ni nc o mewi l l 5 9 )_ _ _ _ _ _ A)i nc r e a s et h ema r g i na lut i l i t yofa l lgoods . B)i nc r e a s ec ons umpt i o nofa l lg oo ds . C)e x pa ndac o ns ume r ' sc o ns umpt i onpos s i bi l i t i e sa n dt he r e f or ec a nbuymo r eo fago odwhi c hi nc r e a s e st o t a lut i l i t y . D)No neo ft hea b ov ea ns we r si sc o r r e c t .
SECTI ON 8 . 4NEW WAYSOFEXPLAI NI NG CONSUMERCHOI CES 6 0 )S uppo s et ha tRi c h ar dha sj us tt ol dy out ha thewo ul dno tpa ymo r et ha n$ 1 00dol l a r sf o ro neo fhi sf a v or i t eb as e b a l l c a r ds . Youoffe rt ogi v ehi m$ 1 10dol l a r sf o rhi sc a r da ndher e f us e s .Wha tc o ns ume rc h oi c et he o r yore ffe c te x pl a i nst hi s r e s ul t ? 60)_____ _ A)boundedwi l lpowerB)boundedra t i onal i t y C)boundedse l f nt er es t D)t heendowmenteffec t -i 61)Genepl aysanot herhourofcomput ergamesr at hert hans t udyf ort hehourevent houghheknowst hatt henextday , whenhet akeshi st es t ,hewi l lr egre thi sdeci s i on.Genei ss howi ng________. 61)______ A)t hee ndowme nte ffe c t C)bo unde dwi l lpowe r
B)bounde ds e l f nt e r es t -i D)bo unde dr a t i onal i t y
6 2 )I fS e ant hi nkst ha tt hec h oi c eb e t we e ngo i ngt oOl i v eGa r d e no rRe dLob s t e ri ss i mpl yt o oc o nf us i ng,abe ha vi o r a l ec onomi s twi l lexpl ai nt hatSeani ss howi ng________. 62)______ A)boundedse l f nt e r e s t B)b ounde dwi l lpo we r -i C)boundedr at i onal i t y D)t heendowmenteffec t 63)Abehavi oral ec onomi s twi l lexpl ai nTom' sdonat i ont ochari t ybysayi ngt hatTom i sdi s pl ayi ng________. ______ A)t hee ndo wme nte ffe c t C)bounde dr at i ona l i t y
B)bo unde dwi l lpowe r D)bounde ds e l f nt e r es t -i
64)I fyouexhi bi tendowmenteffec t ,t henyou 64)___ ___ A)haveas t r ongat t achmentt ot hi ngsyoual r eadyown. B)de c i der a t i o na l l ywhe nma k i ngde c i s i o nsa b outs e l l i ngbutno twhe nma ki ngde c i s i o nsa bo utb uy i ng . C)de c i der a t i o na l l ywhe nma ki ngde c i s i o nsa b outb uy i ngbutno twhe nma ki ngde c i s i o nsa b outs e l l i ng. D)buysomet hi ngyouc annotaffor d.
CHAPTER1 1OUTPUTAND COSTS
63)
SECTI ON 1 1 . 1 65 )I nt hes hor tr un, 65 )__ __ __ A)a l lf a c t or sofpr o duc t i ona r efix e d. B)a l lf a c t or so fp r oduc t i ona r eva r i a bl e . C)t hes i z eoft hepl a nti sfix e d. D)s o mefir mse x pe r i e nc ei nc r e a s i ngr e t ur nst os c a l e . 66 )I nt hes hor tr un, 66 )__ __ __ A)atl eas tonef act orofpr oduct i oni sfixed. B)t herear enovar i abl ecos t s . C)a l lf a c t o r so fpr o duc t i ona r ev ar i a bl e .D)a l lf a c t or sofpr o duc t i ona r efix e d. 6 7 )I ne c o no mi c s ,t hes h or tr u ni st het i mef r a mei nwhi c ht h equa nt i t i e so f_ _ _ __ _ __a ndt hel o ngr uni st hepe r i o do ft i me i nwhi c h_ ____ ___. 67)_ _____ A)s o mef a c t or sofpr o duc t i ona r eva r i a bl e ;t hequa nt i t i e sofa l lf a c t or sofpr o duc t i ona r efix e d B)a l lf a c t or so fpr o duc t i ona r eva r i a bl ebutt e c hnol ogyi sfix e d;t e c hnol ogyi sv ar i a bl e C)s o mef a c t o r so fpr o duc t i ona r efix e d;t hequa nt i t i e so fa l lf a c t or sofpr o duc t i onc a nbeva r i e d D)a l lf a c t or sofpr o duc t i ona r efix e d;t hequa nt i t i e sofa l lf a c t or so fpr o duc t i onc a nbeva r i e d 6 8)Thel ongr un 68)_ _____ A)me a nsal o ngpe r i o do ft i me , a l wa y sl o ng e rt ha nay e a r . B)i sape r i odoft i mei nwhi c ha l lf a c t o r so fp r o duc t i o nc a nb ev ar i e d. C)i sd i ffe r e n tf ordi ffe r e n tfir ms . D)Bot hans wer sBandCar ec orr ec t . 6 9 )Ac o s tt ha tha sa l r e a dyb e e nma dea ndc a n no tb er e c o v e r e di sc a l l e da6 9 )_ _ _ _ _ _ A)mar gi nalc os t . B)va r i abl ec os t .C)fixe dc os t . D)s unkc os t .
SECTI ON 1 1 . 2 7 0 )Whe nt hema r g i na la nda v e r a g epr o duc t so fl a b ora r ee q ua lt oe a c ho t he r ,t he7 0 )_ _ _ _ _ _ A)ave r ageproduc tmus tbeati t smaxi mum val ue. B)t ot alpr oductmus tbeati t smaxi mum val ue. C)mar gi nalpr oductmus tbeati t smaxi mum val ue. D)No neo ft hea b ov ea ns we r si sc o r r e c t 71)Whent hemar gi nalpr oductcurvei sabovet heaver agepr oductcurve, ________asout puti ncr eas es . 71)______ A)mar gi nalpr oduc tmus tdec r ea s e C)a ve r ag epr oduc tmus ti nc r ea s e
B)a ver agepr oductmus tdec r ea s e D)mar gi nalpr oduc tmus ti nc r e as e
7 2 )I fafir m' sma r g i na lpr o duc tofl a bori sl e s st ha ni t sa v e r a gepr o duc tofl a bor ,t he na ni nc r e a s ei nt hequa nt i t yofl a bori t empl oysdefini t el ywi l l72)______ A)i ncr eas ei t smar gi nalpr oduc tofl abor . B)notchangei t saver agepr oductofl abor . C)de c r e a s ei t st o t a lpr o duc t . D)de c r e a s ei t sa v e r a g epr o duc to fl a b or . 7 3 )Thema r g i na lpr o duc to fl a b ori st hec h a ng ei nt o t a lpr o duc tf r o m aone-uni ti nc r e a s ei n A)t hequa nt i t yo fc a pi t a le mpl o ye d,hol di ngt hequa nt i t yofl a borc o ns t a nt .
73)_____ _
B)b ot ht heq ua nt i t yofl a bo ra ndt heq ua nt i t yofo t he ri nput se mpl o ye d. C)t hequa nt i t yofl a bo re mpl o ye d,ho l di ngt hequa nt i t yofo t he ri nput sc ons t a nt . D)t hewager at e.
SECTI ON 1 1 . 3 T o t a lpr o duc t ( b oo kss o l dpe r Labor( wor ker s ) hour) 0 0 1 10 2 24 3 40 4 58 5 73 6 83 7 87 8 89 9 90 10 90 7 4 )Thea b ov et a b l es ho wst hes ho r t unt o t a lpr o duc ts c he dul ef o rt hec a mpusb o oks t o r e . Wha ti st hea v e r a g epr o duc t -r ( )whe n4wor ke r sar ee mpl oy e d? 74 )__ __ __ AP A)1 3 . 3bo ok ss o l d B)1 8bo okss o l d C)58bookss ol d D)1 4 . 5bo ok ss o l d Expl anat i on:AP= ( t o t a lpr o duc t/numb e rl a b or )= ( 5 8/4 )
T o t a lpr o duc t Labor( wor ker sper ( ba s e ba l lha t spe r hour) hour) 0 0 1 4 2 10 3 18 4 25 5 30 7 5 )Thet a bl ea bo vegi v e spr o duc t i o ni nf o r ma t i o nf o rBo b' sBa s e b a l lCa pCo mpa n y .Bo b' st o t a lc o s twhe nz e r oc a psa r e pr o duc e di s$ 2 0 0a ndwo r k e r sc o s t$ 1 0pe rho ur .Thet o t a lv a r i a bl ec o s to fpr o duc i ng1 8ba s e b a l lha t sp e rh ouri s 7 5 ) ______ A)$ 3 0. 0 0 .Expl anat i on: ( TVC numbe ro fl a bo re mpl o y e d*wa g eb/ ct heonl ys o ur c eo fv a r i a bl ec o s ti sl a bo r . Numberofwor ker sempl oyedf orpr oduc i ng18c apsi s3. TVC 3 * 1 0 , t hewa g e . B)$ 1. 6 7. C)$ 2 00 . 0 0 D)Morei nf ormat i oni sneededt oanswert heques t i on. =
=
Labor ( wor ker sperday) 0 1 2 3 4 5
Out put ( uni t spe rda y ) 0 10 15 18 20 21
7 6 )Ci ndy ' sS we a t e r s ' pr o duc t i o nf unc t i o ni ss ho wni nt hea bo v et a bl e .Wha ti st hema r g i na lpr o duc to fl a b orwhe nt he4 t h wo r k e ri shi r e d ?7 6 )_ _ __ _ _ A)5sweat er sperday B)2 0s we a t e r sp e rd a y C)4s we a t e r spe rda y D)2sweat er sperday Ex pl a na t i on: ( o ut putf r o m 4uni t so fl a bo r - out putf r om 3wor ker s )= 20- 18 77)Tot alvar i abl ec os ti st hes um ofal lt he 77)___ ___ A)c o s t sa s s o c i a t e dwi t ht hepr oduc t i onofgo ods . B)i mpl i c i tc os t s . C)c os t st ha tr i s ea sout puti nc r e a s e s . D)c o s t so ft hefir m' sfix e df a c t o r so fpr oduc t i o n. 7 8)Afir m' sa v er a g eva r i a bl ec os ti s$ 9 0,i t st o t a lfix e dc os ti s$ 10 , 0 00 ,a ndi t so ut puti s1 , 0 00uni t s . I t st ot a lc os ti s 7 8) ______ A)bet ween$85, 000and$95, 000. B)b e t we e n$ 95 , 0 0 0a nd$ 1 0 5 , 0 0 0 . Ex pl a na t i o n: TC=TVC+ TFC= AVC* Q + TFC= ( 9 0* 1 0 00 )+ 1000=1 00 , 0 00 C)l e s st ha n$ 8 5, 0 0 0. D)moret han$105, 000.
7 9 )Ba s e dont hea bo vefigur eoft hec o s t sa tBa r n e y' sBa g elBa ke r y , a twhi c hl e v e lo fo ut putwi l ldi mi ni s h i ngma r g i na l r e t ur nsfir s toc c ur ? 79 )_ __ __ _ A)a t3 0 0 0ba g e l s B)a t1ba ge l C)a t5 0 0b ag e l s Ex pl a na t i o n: a f t e r5 0 0uni t s , MCc u r v es l o pe su pwa r d. s l o pi ngdo wnc o s tc ur v eme a nsc o s tde c r e a s e s . D)a t2 0 0 0b a ge l s 8 0 )Whi c ho ft hef ol l o wi ngs h i f t st he AVC c ur veupwar datBar ne y' sBag e lBak e r y? 80 )___ ___ A)a ni nc r e a s ei nt hefix e da mo unto fl i a bi l i t yi ns u r a n c epr e mi umst ha tBa r n e ypa y sf o rhi sb us i ne s s B)ade c r e a s ei nt heho ur l ywa g et ha tBa r n e ypa y sh i swo r k e r s C)a ni nc r e a s ei nt heho ur l ywa g et ha tBa r n e ypa y sh i swo r k e r s D)Bot hanswer sAandCar ec or r ec t . 81)I fasout puti ncr eas esaver ageproducti ncr eas es , t hen________. 81)______ A)ave r ageva r i abl ec os tdec r ea s es B)ave r agefixedcos tdec r ea s es C)mar gi nalc ostdec r eas es D)ave r aget ot alcos tdec r eas es
SECTI ON11 . 4 LONGRUNCOST
Labor Out putwi t hPl a nt1( 1o v e n) ( wor ker sperwee k) ( pi zzasperweek) 1 50 2 80 3 10 0 4 11 0 5 11 5
Out putwi t hPl ant2( 2ovens) ( pi z z a sp e rwe e k ) 60 130 180 220 240
8 2 )S i l vi o' sPi z zai sas ma l lpi z ze r i a .Thefir m' spr o duc t i onf unc t i oni ss h owni nt het a bl ea bo ve .S uppos et ha tS i l vi o' sc o s t s i nc l udeo nl yt h ec o s tofr e nt i ngov e ns , whi c hi s$ 1 0 0pe ro ve npe rwe e k,t hel a bo rc o s t ,$ 2 8 0pe rwo r k e rp e rwe e k ,a ndt he oppor t uni t yc os tofS i l vi o' se nt r e pr e n eur s hi p, $ 1, 0 0 0pe rwe e k.
Wha ti sS i l vi o' sl ong-r una ve r agec os ti ft heout puti s10 0pi zz asperwee k?
82 )__ __ __
A)$ 8 . 4 0 B)$ 11 . 0 0 C)$19. 40SEETHEEXPLANATI ON FORQUESTI ON 85. D)$ 1 7 . 9 0 83)TheLRAC ( LongRunAve r ageCos t )c urv e 83 )__ __ __ A)g ene r a l l yl i e sa bo vet hes ho r t un ATC c ur v e s . -r B)s h owst hel o we s tpos s i b l ema r g i na lc o s to fp r o duc i ngt hedi ffe r e ntl e v e l so fo ut put . C)i st hemi ni mum poi nt sonal lt heshort un ATC c ur v e s . -r D)s h owst hel o we s ta t t a i na bl ea v er a get o t a lc o s tf ora l ll e ve l so fout putwhe na l li nput sc a nbeva r i e d. 8 4)I nt hel ongr un, 84 )_ __ __ _ A)out puti sfixed. B)a l li nput sc a nbeva r i e d. C)s o mei n put sa r ev a r i a b l ea ndo t he ri n put sa r efix e d. D)a l li nput sa r efix e d.
Labor Out putwi t hPl a nt1( 1o v e n) ( wor ker sperwee k) ( pi zzasperweek) 1 50 2 80 3 10 0 4 11 0 5 11 5
Out putwi t hPl ant2( 2ovens) ( pi z z a sp e rwe e k ) 60 130 180 220 240
8 5 )S i l vi o' sPi z zai sas ma l lpi z ze r i a .Thefir m' spr o duc t i onf unc t i oni ss h owni nt het a bl ea bo ve .S uppos et ha tS i l vi o' sc o s t s i nc l udeo nl yt h ec o s tofr e nt i ngov e ns , whi c hi s$ 1 0 0pe ro ve npe rwe e k,t hel a bo rc o s t ,$ 2 8 0pe rwo r k e rp e rwe e k ,a ndt he oppor t uni t yc os tofS i l vi o' se nt r e pr e n eur s hi p, $ 1, 0 0 0pe rwe e k. S uppo s eS i l vi o ' su s e sPl a nt2 .Thefir m' sa v e r a g et o t a lc o s ti smi ni mi z e dwhe n_ _ _ _ _ _ __pi z z a spe rwe e ka r epr o duc e d . 8 5 )_ _ _ __ _ A)130 B)1 8 0 C)220 Ex pl a na t i on:Ca l c ul a t eT Cb ya ddi ngt hec o s t s . t hea ppr o pr i a t ee q ua t i onwi l lbeT C = 1 0 0 * 2+ 1000+ 2 8 0*n;whe r eni s t henumb e ro fwo r k e r sh i r e d.1 0 0i smul t i pl i e db y2b/ct hequa nt i t y2 2 0i sp r o duc e di npl a nt2wi t h2ov e ns . F ore . g .TC of2 2 0uni t si s1 2 00+ 2 8 0 * 4b /c4wo r k e r sa r ehi r e dt opr o duc e2 2 0uni t s .T Ct he ni s$ 2 3 2 0 . b /ct heq ue s t i o ni sa b o utATC, di vi det heTCc a l c ul a t e db yt hequa nt i t yo fo ut put , whi c hi s2 2 0 . I fy ouc a l c ul a t et heATCf o rt hequa nt i t ya s s o c i a t e dwi t h3wo r k e r sa nd5wo r k e r s ,y ouwi l ls e et ha tt heATCi sl e s sf or2 2 0 t hanATCf orproduci ng180quant i t yor240. D)60
Qua nt i t y 0 2 0 4 0
Long-r unt ot a lc os t ( dol l ar s ) 0 100 160
6 0 8 0
180 190
8 6 )Thec o s tda t ai nt hea bo vet a bl eda t as h ow t ha tpr oduc t i oni sc ha r a c t e r i z e db y8 6 )_ _ _ __ _ A)e c o no mi e so fs c a l e .Ex pl a na t i on: qua nt i t ydoub l e sb utc o s ti nc r e a s e sb yl e s st ha ndo ub l e . B)de c r e a s i ngr e t ur n st os c a l e . C)c o ns t a ntr e t ur n st os c a l e . D)Morei nf ormat i oni sneededt oanswert heques t i on.
87)I nt heabovefigur e, ec onomi esofs cal ear epres entupt oanout putl evelof 87)______ A)1 0 , 0 0 0po undsofc o ffe e .Ex pl a na t i o n:Lo ngr unc os t si nc r e a s ef orqua nt i t yl a r g e rt ha n1 0t ho us a nd. B)13, 000poundsofcoffee. C)15, 000poundsofcoffee. D)5, 000poundsofcoffee. 88)Cons t antr et ur nst osc al emeanst hatasal li nput sar ei ncr eas ed, A)a v er a get o t a lc os tr i s e sa tt hes a mer a t ea sdot hei nput s . B)t o t a lo ut puti nc r e a s e si nt hes a mepr o po r t i o na sdot h ei nput s . C)a ve r a get ot a lc os tr i s e s . D)t o t a lout putr e ma i nsc o ns t a nt .
88)______
89)Whi c hoft hef ol l owi ngi sF ALSE? 89)___ ___ A)Long-r u na v er a gev ar i a bl ec o s t se q ua ll ong-r una ve r a get ot a lc os t s . B)I nt hel ongr un,bot ht heamountofcapi t alandl aborus edbyt hefir m canbechanged. C)F i x e dc o s t si nc r e a s ei nt hel o ngr u n. D)Asafir m pr o duc e smo r eo ut put , e v e nt ua l l yi te x pe r i e nc e sdi s e c o no mi e so fs c a l e .
ANSWERKEYTO STUDYQUES TI ONSFROM CHAPTERS8, 10AND11. 1 )B 2 )A 3 )A 4 )C 5 )C 6 )B 7 )D 8 )D 9 )B 1 0)B 1 1)A 1 2)B 1 3)D 1 4)B 1 5)C 1 6)A 1 7)A 1 8)A 1 9)B 2 0)D 2 1)A 2 2)A 2 3)C 2 4)D 2 5)B 2 6)D 2 7)A 2 8)B 2 9)D 3 0)A 3 1)B 3 2)A 3 3)C 3 4 )a ) Thee c o no mi cde pr e c i a t i o no ft hefir m' sc a pi t a li st hema r k e tv a l ueofi t se q ui pme nta tt hebe g i nni ngo ft hey e a r , $ 3 0, 0 00 ,mi nusi t sma r k e tv al uea tt hee ndoft hey e ar ,$ 20 , 0 00 ,s ot hee c onomi cde pr e c i a t i oni s$ 1 0 , 0 0 0. b) Thepa r t ne r s hi p' sc os t sar e :t her e nt ,$12 , 000 ;t hei nt e r e s te xpe ns e ,$1, 800;t hee c onomi cde pr e c i at i on,$10 , 000 ;and,t he oppor t uni t yc os toft heowne r s ' r e s our c e s , whi c hi st hebe s ta l t e r na t i v eus eo ft he i rr e s o ur c e s , wor ki nga tt he i rpr e v i ous j obf or$4 0, 0 00e ac h,f orat ot alof$80, 000.t he r e f or et het ot alc os ti s$103, 800. c ) Afir m' se c o nomi cpr o fiti si t st o t a lr e v e nuemi nusi t st o t a lc o s t .Bi l la ndS t e v e ' st o t a le c o nomi cpr o fiti s$ 1 00 , 0 0 0$ 1 0 3, 8 0 0= -$3, 800,whi chmeanst hatt hefir m hasanec onomi cl oss . 35 )a) Te c hni queB i st e c hnol ogi c a l l yi ne ffic i e nt .I tr e qui r e smo r el a bo ra ndmo r ec a pi t a lt ha nt e c h ni queC t opr oducea gi v eno ut put .Al lo t h ert e c hni que sa r et e c hnol ogi c a l l yeffic i e nt . b) Ec onomi ce ffic i e nc yoc c ur swhe nt hefir m pr oduc e sagi ve nout putatt hel e as tc os t .Te c hni queD ha st hel o we s tc o s t a ndt he r e f or ei se c onomi c a l l ye ffic i e nt . c) Wi t ht hechangei nc os t s ,t heeconomi c al l yeffic i entmet hodofpr oduc t i onchanges. Thecompanywi l lnow us eamor e l a bori nt e ns i v et e c hni que A,whi c h ,wi t ht hel o we rl a b orc o s t ,b e c o me st hee c o no mi c a l l ye ffic i e ntme t ho d. 3 6)A 3 7)B 3 8)A 3 9)D
4 0)B 4 1)D 4 2)C 4 3)D 4 4)C 4 5)D 4 6)B 4 7)C 4 8)D 4 9)A 5 0)D 5 1)A 5 2)A 5 3)C 5 4)A 5 5)B 5 6)C 5 7)D 5 8)B 5 9)C 6 0)D 6 1)C 6 2)C 6 3)D 6 4)A 6 5)C 6 6)A 6 7)C 6 8)D 6 9)D 7 0)A 7 1)C 7 2)D 7 3)C 7 4)D 7 5)A 7 6)D 7 7)C 7 8)B 7 9)C 8 0)C 8 1)A 8 2)C 8 3)C 8 4)B 8 5)C 8 6)A 8 7)A 8 8)B 8 9)C
