The following table shows the relationship between workers and output for a small factory in the short run, with capital held constant Find the marginal product of labor (MPL) Workers Output MPL 0 0 —   1 4040 nothing   2 8888 nothing   3 141141 nothing   4 183183 nothing   5 201201     At the end of the year, a firm produced 18 comma 00018,000 laptop computers Its total costs were $88 million, and its fixed costs were $55 million What are the average variable costs of this firm? $ nothing (Round your answer to the nearest penny)   The cost structure of a manufacturer of microchips is described in the table shown below The firm’s fixed costs equal $1010,000 per day Calculate the average variable cost, average fixed cost, and average total cost at each output level (Your answers should be rounded to the nearest cent) Output (microchips per day) Total Cost of Output Average Variable Cost ($) Average Fixed Cost ($) Average Total Cost ($)   0 $1010,000 minus? minus? minus? 1515,000 6060,000 nothing nothing nothing   4040,000 9595,000 nothing nothing nothing   6565,000 150150,000 nothing nothing nothing   9090,000 220220,000 nothing nothing nothing   115115,000 325325,000 nothing nothing nothing   140140,000 465465,000 nothing nothing nothing   The table below represents the hourly output and cost structure for a local pizza shop The market is perfectly competitive, and the market price of a pizza in the area is $1212 Total costs include all implicit opportunity costs Calculate the pizza shop’s marginal cost and marginal revenue at each rate of output and fill in the values in the table Total Hourly Output and Sales of Pizzas Total Hourly Cost ($) Total Revenue ($) Total Economic Profit ($) Marginal Cost ($) Marginal Revenue ($) 0 66 0 0 minus? minus? 1 1010 1212 22 nothing nothing   2 1212 2424 1212 nothing nothing   3 1313 3636 2323 nothing nothing   4 1515 4848 3333 nothing nothing   5 1919 6060 4141 nothing nothing   6 2525 7272 4747 nothing nothing   7 3333 8484 5151 nothing nothing   8 4343 9696 5353 nothing nothing   9 5555 108108 5353 nothing nothing   10 7171 120120 4949 nothing nothing   The campus barber faces stiff competition from the large number of shops that surround the campus area, and for all practical purposes the market is perfectly competitive He charges $1212 for a haircut and cuts hair for 1515 people a day His shop is open 44 days a week Calculate his weekly total revenue $ nothing (Enter your response as a whole number)   Suppose that a perfectly competitive firm faces a market price of $66 per unit, and at this price the upward-sloping portion of the firm’s marginal cost curve crosses its marginal revenue curve at an output level of 2 comma 0002,000 units If the firm produces 2 comma 0002,000 units, its average variable costs equal $550550 per unit, and its average fixed costs equal $050050 per unitWhat is the firm’s profit-maximizing (or loss-minimizing) output level? nothing (Enter your response as a whole number long dash— include the minus sign if necessary)   The following table shows marginal and average total cost schedules for a perfectly competitive firm Currently, the market price in this industry is $4040 Output (units) (Q) Marginal Cost (MC) Average Total Cost (ATC)   0 — —   1 1010 3535 2 2020 2828 3 3030 1818 4 4040 3131 5 5050 3535 A profit-maximizing firm will produce nothing units (Enter your response as an integer)   A perfectly competitive increasing costincreasing cost industry is in long-run equilibrium Due to a change in tastes and preferences, there is a decreasea decrease in demand Which of the following best describes the effect on theindustry?The price will   A increase comma firms will produce more comma profits will increase comma and more firms will enter until profit returns to zeroincrease, firms will produce more, profits will increase, and more firms will enter until profit returns to zero   B decrease comma firms will produce more comma profits will decrease comma and more firms will enter until profit returns to zerodecrease, firms will produce more, profits will decrease, and more firms will enter until profit returns to zero   C decrease comma firms will produce less comma profits will increase comma and more firms will enter until profit returns to zerodecrease, firms will produce less, profits will increase, and more firms will enter until profit returns to zero   D decrease comma firms will produce less comma profits will be below zero comma and firms will exit until profit returns to zerodecrease, firms will produce less, profits will be below zero, and firms will exit until profit returns to zero   Given the information in the table at right, calculate the dry cleaner’s marginal revenue (MR) and marginal cost (MC) at each output level (Your answer should be rounded to the nearest cent) Output (Suits Cleaned) Price per Suit ($) Total Costs ($) Total Revenue ($) MC ($) MR ($)   0 12001200 300 000000 minus? minus? 1 11501150 600 11501150 nothing nothing   2 11001100 850 22002200 nothing nothing   3 10501050 1050 31503150 nothing nothing   4 10001000 1150 40004000 nothing nothing   5 950950 13501350 47504750 nothing nothing   6 900900 20002000 54005400 nothing nothing   7 850850 28002800 59505950 nothing nothing   8 800800 32003200 64006400 nothing nothing   Enter your answer in the edit fields and then click Check Answer   Given the information in the table at right, calculate the dry cleaner’s marginal revenue (MR) and marginal cost (MC) at each output level (Your answer should be rounded to the nearest cent) Output (Suits Cleaned) Price per Suit ($) Total Costs ($) Total Revenue ($) MC ($) MR ($)   0 12001200 300 000000 minus? minus? 1 11501150 600 11501150 nothing nothing   2 11001100 850 22002200 nothing nothing   3 10501050 1050 31503150 nothing nothing   4 10001000 1150 40004000 nothing nothing   5 950950 13501350 47504750 nothing nothing   6 900900 20002000 54005400 nothing nothing   7 850850 28002800 59505950 nothing nothing   8 800800 32003200 64006400 nothing nothing   Enter your answer in the edit fields and then click Check Answer   Currently, a monopolist’s profit-maximizing output is 300300 units per week It sells its output at a price of $5555 per unit and collects $3535 per unit in revenues from the sale of the last unit produced each week Thefirm’s total costs each week are $8 comma 5008,500Given this information, the firm’s maximized weekly economic profits are $ nothing (Enter your response as a whole number)     The following table shows demand and marginal cost for a monopolist Calculate marginal revenue (MR) at each quantity (Enter your response as an integer) Output (units) (Q) Price per Unit (P) Marginal Revenue (MR) Marginal Cost (MC)   0 5555 — —   1 4545 nothing 1010 2 3535 nothing 2020 3 2525 nothing 3030 4 1515 nothing 4040 5 55 nothing 5050     Currently, a monopolist’s profit-maximizing output is 200200 units per week It sells its output at a price of $6060 per unit and collects $3030 per unit in revenues from the sale of the last unit produced each week Thefirm’s total costs each week are$9 comma 0009,000 Given this information, the firm’s maximized weekly economic profits are $ nothing (Enter your response as a whole number)   Which of the following markets has a barrier to entry?   A There are already many fast food restaurants in the City of Buffalo   B Gold can only be mined in certain places in the world   C Stan’s Garbage Company runs the only trash collection service in town   D An aluminum company owns all bauxite mines comma an essential inputAn aluminum company owns all bauxite mines, an essential input   Monopolistic competition is similar to monopolymonopoly because   A in both industry structures, there are barriers to entrythere are barriers to entry   B in both industry structures, long minus run profits will be equal to zerolong?run profits will be equal to zero   C both industry structures have many sellersmany sellers   D in both industry structures, the firm’s demand curve is downward slopingthe firm’s demand curve is downward sloping   In the short run, a monopolistically competitive firm will   A select the rate of output where marginal revenue equals marginal cost   B select the rate of output where price equals marginal cost   C make a profit   D not advertise because the effects will not be realized until the long run           The table below depicts the prices and total costs a local used-book store faces The bookstore competes with a number of similar stores, but it capitalizes on its location and the word-of-mouth reputation of the coffee it serves to its customers Calculate the store’s total revenue, total profit, marginal revenue, and marginal cost at each level of output, beginning with the first unit (Enter all values rounded to the nearest penny) Output Price per Book ($) Total Costs ($) Total Revenue ($) Total Profit ($) Marginal Revenue ($) Marginal Cost ($)   0 575575 400400 nothing nothing minus? minus? 1 550550 725725 nothing nothing nothing nothing   2 525525 950950 nothing nothing nothing nothing   3 500500 11601160 nothing nothing nothing nothing   4 475475 14101410 nothing nothing nothing nothing   5 450450 17601760 nothing nothing nothing nothing   6 425425 21752175 nothing nothing nothing nothing   7 400400 26502650 nothing nothing nothing nothing   In the long run, monopolistically competitive firms   A make positive economic profits   B can make either positive economic profits or zero economic profits, and always make positive accounting profits   C make zero economic profits   D make zero accounting profits   Suppose that the distribution of sales within an industry is as shown in the following table: Firm Share of Total Market Sales A 1616 B 1313 C 1212 D 1111 E 1010 F 1010 G 88 H 77 All others 13 Total 100%   There are 13 “All others” in the industry in the above table, each of which has a share of sales equal to 1 percentThe value of the Herfindahl-Hirschman Index for this industry is nothing (Enter your response as a whole number)   Which of the following isis a characteristic of an oligopoly?   A No market powerNo market power   B Upper A single sellerA single seller   C No barriers to entryNo barriers to entry   D Strategic interdependenceStrategic interdependence   Suppose that the distribution of sales within an industry is as shown in the table What is the four-firm concentration ratio for this industry? nothing% (Enter your response as a wholenumber) Firm Share of Total Market Sales A 1515 B 1414 C 1212 D 1111 E 88 F 66 G 44 H 22 All Other 2828 Total 100%     Which of the following is not one of the conditions that make it more likely that firms will be able to coordinate their efforts to restrain output and detect cheating?   A Market demand tends to be volatile   B Firms in the industry produce nearly identical products   C A small number of firms in the industry   D Prices are easily observablePrices are easily observable   Cartels are more likely to failfail when   A products are very similarproducts are very similar   B there are few firms in the marketthere are few firms in the market   C it is easy to observe the prices that firms setit is easy to observe the prices that firms set   D there are no barriers to entrythere are no barriers to entry

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The following
table shows the relationship between workers and output for a small factory in
the short run, with capital held constant Find the marginal product of labor

(MPL)

Workers Output MPL

0 0 —

 

1 4040 nothing

 

2 8888 nothing

 

3 141141 nothing

 

4 183183 nothing

 

5 201201

 

 

At the end of the
year, a firm produced 18 comma 00018,000 laptop computers Its total costs were
$88 million, and its fixed costs were $55 million What are the average
variable costs of this firm?

$ nothing

(Round your answer to the nearest penny)

 

The cost
structure of a manufacturer of microchips is described in the table shown
below The firm’s fixed costs equal $1010,000 per day Calculate the average
variable cost, average fixed cost, and average total cost at each output level
(Your answers should be rounded to the nearest

cent)

Output

(microchips per
day)

Total Cost of

Output Average

Variable Cost ($)

Average

Fixed Cost ($)

Average

Total Cost ($)

 

0 $1010,000

minus? minus? minus?

1515,000

6060,000

nothing

nothing

nothing

 

4040,000

9595,000

nothing

nothing

nothing

 

6565,000

150150,000

nothing

nothing

nothing

 

9090,000

220220,000

nothing

nothing

nothing

 

115115,000

325325,000

nothing

nothing

nothing

 

140140,000

465465,000

nothing

nothing

nothing

 

The table below
represents the hourly output and cost structure for a local pizza shop The
market is perfectly competitive, and the market price of a pizza in the area is
$1212 Total costs include all implicit opportunity costs Calculate the pizza
shop’s marginal cost and marginal revenue at each rate of output and fill in
the values in the table

Total Hourly
Output

and Sales of
Pizzas Total Hourly

Cost ($)

Total Revenue ($) Total Economic Profit ($)

Marginal Cost ($)

Marginal Revenue
($)

0 66 0 0 minus? minus?

1 1010 1212 22 nothing

nothing

 

2 1212 2424 1212 nothing

nothing

 

3 1313 3636 2323 nothing

nothing

 

4 1515 4848 3333 nothing

nothing

 

5 1919 6060 4141 nothing

nothing

 

6 2525 7272 4747 nothing

nothing

 

7 3333 8484 5151 nothing

nothing

 

8 4343 9696 5353 nothing

nothing

 

9 5555 108108 5353 nothing

nothing

 

10 7171 120120 4949
nothing

nothing

 

The campus barber
faces stiff competition from the large number of shops that surround the campus
area, and for all practical purposes the market is perfectly competitive He
charges $1212 for a haircut and cuts hair for 1515 people a day His shop is
open 44 days a week Calculate his weekly total revenue

$ nothing

(Enter your
response as a whole number)

 

Suppose that a
perfectly competitive firm faces a market price of $66 per unit, and at this
price the upward-sloping portion of the firm’s marginal cost curve crosses its
marginal revenue curve at an output level of 2 comma 0002,000 units If the
firm produces 2 comma 0002,000 units, its average variable costs equal
$550550 per unit, and its average fixed costs equal $050050 per unitWhat
is the firm’s profit-maximizing (or loss-minimizing) output level?

nothing

(Enter your
response as a whole number long dash— include the minus sign if necessary)

 

The following
table shows marginal and average total cost schedules for a perfectly
competitive firm Currently, the market price in this industry is $4040

Output (units)

(Q)

Marginal Cost

(MC)

Average Total
Cost

(ATC)

 

0 —

—

 

1 1010 3535

2 2020 2828

3 3030 1818

4 4040 3131

5 5050 3535

A
profit-maximizing firm will produce

nothing units (Enter your response as an
integer)

 

A perfectly
competitive increasing costincreasing cost industry is in long-run equilibrium
Due to a change in tastes and preferences, there is a decreasea decrease in
demand Which of the following best describes the effect on theindustry?The
price will

 

A

increase comma
firms will produce more comma profits will increase comma and more firms will
enter until profit returns to zeroincrease, firms will produce more, profits
will increase, and more firms will enter until profit returns to zero

 

B

decrease comma
firms will produce more comma profits will decrease comma and more firms will
enter until profit returns to zerodecrease, firms will produce more, profits
will decrease, and more firms will enter until profit returns to zero

 

C

decrease comma
firms will produce less comma profits will increase comma and more firms will
enter until profit returns to zerodecrease, firms will produce less, profits
will increase, and more firms will enter until profit returns to zero

 

D

decrease comma
firms will produce less comma profits will be below zero comma and firms will
exit until profit returns to zerodecrease, firms will produce less, profits
will be below zero, and firms will exit until profit returns to zero

 

Given the
information in the table at right, calculate the dry cleaner’s marginal revenue
(MR) and marginal cost (MC) at each output level

(Your

answer should be
rounded to the nearest

cent)

Output

(Suits Cleaned) Price per Suit ($) Total Costs ($) Total
Revenue ($) MC ($)

MR ($)

 

0 12001200 300 000000 minus? minus?

1 11501150 600 11501150 nothing

nothing

 

2 11001100 850 22002200 nothing

nothing

 

3 10501050 1050 31503150 nothing

nothing

 

4 10001000 1150 40004000 nothing

nothing

 

5 950950 13501350 47504750 nothing

nothing

 

6 900900 20002000 54005400 nothing

nothing

 

7 850850 28002800 59505950 nothing

nothing

 

8 800800 32003200 64006400 nothing

nothing

 

Enter your answer
in the edit fields and then click Check Answer

 

Given the
information in the table at right, calculate the dry cleaner’s marginal revenue
(MR) and marginal cost (MC) at each output level

(Your

answer should be
rounded to the nearest

cent)

Output

(Suits Cleaned) Price per Suit ($) Total Costs ($) Total
Revenue ($) MC ($)

MR ($)

 

0 12001200 300 000000 minus? minus?

1 11501150 600 11501150 nothing

nothing

 

2 11001100 850 22002200 nothing

nothing

 

3 10501050 1050 31503150 nothing

nothing

 

4 10001000 1150 40004000 nothing

nothing

 

5 950950 13501350 47504750 nothing

nothing

 

6 900900 20002000 54005400 nothing

nothing

 

7 850850 28002800 59505950 nothing

nothing

 

8 800800 32003200 64006400 nothing

nothing

 

Enter your answer
in the edit fields and then click Check Answer

 

Currently, a
monopolist’s profit-maximizing output is 300300 units per week It sells its
output at a price of

$5555 per unit
and collects $3535 per unit in revenues from the sale of the last unit produced
each week Thefirm’s total costs each week are $8 comma 5008,500Given this
information, the firm’s maximized weekly economic profits are

$ nothing (Enter
your response as a whole number)

 

 

The following
table shows demand and marginal cost for a monopolist Calculate marginal
revenue (MR) at each quantity (Enter your response as an integer)

Output (units)

(Q)

Price per Unit

(P)

Marginal Revenue

(MR)

Marginal Cost

(MC)

 

0 5555 —

—

 

1 4545 nothing

1010

2 3535 nothing

2020

3 2525 nothing

3030

4 1515 nothing

4040

5 55
nothing

5050

 

 

Currently, a
monopolist’s profit-maximizing output is 200200 units per week It sells its
output at a price of

$6060 per unit
and collects $3030 per unit in revenues from the sale of the last unit produced
each week Thefirm’s total costs each week are$9 comma 0009,000 Given this
information, the firm’s maximized weekly economic profits are

$ nothing (Enter
your response as a whole number)

 

Which of the
following markets has a barrier to entry?

 

A

There are already
many fast food restaurants in the City of Buffalo

 

B

Gold can only be
mined in certain places in the world

 

C

Stan’s Garbage
Company runs the only trash collection service in town

 

D

An aluminum
company owns all bauxite mines comma an essential inputAn aluminum company
owns all bauxite mines, an essential input

 

Monopolistic
competition is similar to

monopolymonopoly

because

 

A

in both industry
structures,

there are
barriers to entrythere are barriers to entry

 

B

in both industry
structures,

long minus run
profits will be equal to zerolong?run profits will be equal to zero

 

C

both industry
structures have

many sellersmany
sellers

 

D

in both industry
structures,

the firm’s demand
curve is downward slopingthe firm’s demand curve is downward sloping

 

In the short run,
a monopolistically competitive firm will

 

A

select the rate
of output where marginal revenue equals marginal cost

 

B

select the rate
of output where price equals marginal cost

 

C

make a profit

 

D

not advertise
because the effects will not be realized until the long run

 

 

 

 

 

The table below
depicts the prices and total costs a local used-book store faces The bookstore
competes with a number of similar stores, but it capitalizes on its location
and the word-of-mouth reputation of the coffee it serves to its customers
Calculate the store’s total revenue, total profit, marginal revenue, and
marginal cost at each level of output, beginning with the first unit

(Enter

all values
rounded to the nearest

penny)

Output Price per

Book ($)

Total

Costs ($)

Total

Revenue ($)

Total

Profit ($)

Marginal

Revenue ($)

Marginal

Cost ($)

 

0 575575 400400
nothing

nothing

minus? minus?

1 550550 725725
nothing

nothing

nothing

nothing

 

2 525525 950950
nothing

nothing

nothing

nothing

 

3 500500 11601160
nothing

nothing

nothing

nothing

 

4 475475 14101410
nothing

nothing

nothing

nothing

 

5 450450 17601760
nothing

nothing

nothing

nothing

 

6 425425 21752175
nothing

nothing

nothing

nothing

 

7 400400 26502650
nothing

nothing

nothing

nothing

 

In the long run,
monopolistically competitive firms

 

A

make positive
economic profits

 

B

can make either
positive economic profits or zero economic profits, and always make positive
accounting profits

 

C

make zero
economic profits

 

D

make zero
accounting profits

 

Suppose that the
distribution of sales within an industry is as shown in the following table:

Firm Share of Total Market Sales

A 1616

B 1313

C 1212

D 1111

E 1010

F 1010

G 88

H 77

All others 13

Total 100%

 

There are 13
“All others” in the industry in the above table, each of which has a
share of sales equal to 1 percentThe value of the Herfindahl-Hirschman Index
for this industry is

nothing (Enter your response as a whole
number)

 

Which of the
following

isis

a characteristic
of an oligopoly?

 

A

No market powerNo
market power

 

B

Upper A single
sellerA single seller

 

C

No barriers to
entryNo barriers to entry

 

D

Strategic
interdependenceStrategic interdependence

 

Suppose that the
distribution of sales within an industry is as shown in the table

What is the
four-firm concentration ratio for this industry?

nothing%

(Enter your
response as a wholenumber)

Firm Share of Total Market Sales

A 1515

B 1414

C 1212

D 1111

E 88

F 66

G 44

H 22

All Other 2828

Total 100%

 

 

Which of the
following is not one of the conditions that make it more likely that firms will
be able to coordinate their efforts to restrain output and detect cheating?

 

A

Market demand
tends to be volatile

 

B

Firms in the
industry produce nearly identical products

 

C

A small number of
firms in the industry

 

D

Prices are easily
observablePrices are easily observable

 

Cartels are more
likely to

failfail

when

 

A

products are very
similarproducts are very similar

 

B

there are few
firms in the marketthere are few firms in the market

 

C

it is easy to
observe the prices that firms setit is easy to observe the prices that firms
set

 

D

there are no
barriers to entrythere are no barriers to entry