Question: The average product (AP) when four units of labor are hired is
Answer Choices:
24.
10
12.
192.
Answer: 12.
Question: The total revenues of Harvey’s firm in the first year were
Answer Choices:
$78,000.
$150,000.
$750,000.
$900,000.
Answer: $900,000.
Question: When the firm produces 3 units of output, it makes an economic
Answer Choices:
profit of $18.
profit of $21.
profit of $45.
loss of $24.
Answer: profit of $18.
Question: Harry’s should stay open or shut down?
Answer Choices:
Harry’s should stay open in the short run but shut down in the long run.
Harry’s should stay open in the short run.
Harry’s should stay open in the long run.
Harry’s should shut down in the short run.
Answer: Harry’s should shut down in the short run.
Question: The profit-maximizing monopolist will realize a
Answer Choices:
loss of $22.25.
profit of $17.50.
profit of $24.
profit of $31.50.
Answer: profit of $24.
Question: The marginal product of the sixth worker is
Answer Choices:
50 units of output.
30 units of output.
−20 units of output.
240 units of output.
Answer: 30 units of output.
Question: If Firm B adopts the low-price strategy, then Firm A would adopt the
Answer Choices:
low-price strategy and earn $175.
high-price strategy and earn $250.
low-price strategy and earn $200.
Answer: low-price strategy and earn $200.
Question: The average product when there are two workers
Answer Choices:
is 28.
cannot be determined from the information given.
is 10.
is 9.
Answer: is 9.
Question: The marginal product of the second worker is
Answer Choices:
40 units of output.
35 units of output.
41.7 units of output.
50 units of output.
Answer: 40 units of output.
Question: Creamy Crisp’s total economic costs are
Answer Choices:
$183,000.
$189,000.
$111,000.
$309,000.
Answer: $309,000.
Question: Creamy Crisp’s explicit costs are
Answer Choices:
$152,000.
$0.
$280,000.
$146,000.
Answer: $146,000.