This paper circulates around the core theme of Other things held constant, consumer surplus increases together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
1 Other things held
constant, consumer surplus increases as:
The price of a good decreases.
The price of a good increases.
The supply curve shifts to the left.
None of the above.
2. When there are
diseconomies of scope between two products that are separately produced by two
firms, merging into a single firm can:
accomplish
an increase in sales.
accomplish
a reduction in costs.
lead to
an increase in cost.
lead to
a reduction in sales.
3. For a cost function C = 100 + 5Q + 2Q2, the average
variable cost of producing 10 units of output is:
10.
25.
35.
None of
the answers are correct.
4. Other things held
constant, producer surplus decreases as:
The price of a good decreases.
The price of a good increases.
The demand curve shifts upward.
None of the above.
5. Managerial
economics:
helps
managers with day-to-day decisions.
helps
managers with long-term decisions.
is
valuable to the manager of a not-for-profit organization.
All of
the above statements are correct.
6. The change in benefits that arises from a one-unit change
in quantity is the:
marginal
net benefits.
marginal
benefits.
total
net benefits.
variable
benefits.
7. Economic profits
are:
the
same as accounting profits.
accounting
profits minus implicit costs.
the
same as total revenue.
total
profits of the economy as a whole.
8. A curve that defines the minimum average cost of
producing different levels of output (allowing for optimal selection of all
variables of production) is:
long-run
average cost curve.
long-run
variable cost curve.
short-run
average variable cost curve.
short-run
variable cost curve.
9. Other things held
constant, consumer surplus decreases as:
The
price of a good decreases.
The
price of a good increases.
The
supply curve shifts to the right.
None of
the above.
10 Suppose the cost
function is C(Q) = 100 + Q ? 2Q2 + 2Q3. What are the fixed costs?
$4
$2
$100
1 â 4Q
+ 6Q2
11. Given the linear
production function Q = 2K + 10L, if Q = 2,000 and L = 100, how much capital is
utilized?
500
units
800
units
600
units
1,000
units
12. Graphically, an
increase in advertising will cause the demand curve to:
become
steeper.
shift
rightward.
become
flatter.
shift
leftward.
13. Consider a market
characterized by the following inverse demand and supply functions: PX = 30 â
3QX and PX = 10 + 2QX. Compute the surplus consumers receive when a $24 per
unit price floor is imposed on the market.
$0.
$12.
$24.
$6.
14. When the
government imposes a price ceiling above the market price, the result will be
that:
surpluses
occur.
shortages
become a problem.
supply
and demand will shift up to the new equilibrium.
a price
floor set above the equilibrium price will have no effect on the market
equilibrium
.
15. Consumer?producer
rivalry happens because:
consumers want to negotiate low prices, while producers want
to negotiate high prices.
consumers want to negotiate high prices, while producers
want to negotiate low prices.
consumers’ high valuation and producers’ low production cost
of a good.
producers’ high production cost and consumers’ low valuation
of a good.
16. $20 today is
worth _____ than $20 in the future, because:
more; the foregone interest that could be earned if you had
the money today.
less; the foregone interest that could be earned if you had
the money later.
more; of inflation concerns.
less; of inflation concerns.
17 The demand for
good X has been estimated to be lnQxd = 100 ? 3 ln PX + 7 ln PY + 5 ln M. The
income elasticity of good X is:
â3.0.
7.0.
5.0.
?5.0.
18. You are the manager of a supermarket, and you know that
the income elasticity of peanut butter is exactly ?0.5. Due to the economic
recession, you expect incomes to increase by 10 percent next year. How should
you adjust your purchase of peanut butter?
Buy 5 percent more peanut butter.
Buy 5 percent less peanut butter.
Buy 10 percent more peanut butter.
Buy 10 percent less peanut butter.
19. Suppose the production function is given by Q = 10K +
8L. What is the average product of capital when 2 units of capital and 10 units
of labor are employed?
10
8
50
18
20. Consider a market
characterized by the following demand and supply conditions: PX = 30 – 4QX and
PX = 6 + 4QX. The equilibrium price and quantity are, respectively,
$3 and 9 units.
$9 and 3 units.
$3 and 18 units.
$18 and 3 units.
21The lower the interest rate, the lower the:
present
value.
net
present value.
Both
present value and net present value are correct.
Neither
present value nor net present value is correct.
22. What is the
present value of $200 received in two years if the interest rate is 12.5
percent?
$175
$158.05
$177.78
$225
23. At what level of
output does marginal cost equal marginal revenue??
10
20
30
40
24 What is the average product of labor, given that the
level of labor equals 5, total output equals 500, and the marginal product of
labor equals 25?
100
125
20
2,500
25. Competitive
market equilibrium is determined by:
Only the most influential buyers and sellers.
Only the demand curve.
Only the supply curve.
The intersection of the demand and supply curves.
26. If Starbucksâs
marketing department estimates the income elasticity of demand for its coffee
to be 2.55, how will the prospect of an economic bust (expected to decrease
consumersâ incomes by 3 percent over the next year) impact the quantity of
coffee Starbucks expects to sell?
Instruction: Round your response to 2 decimal places.
It will change by ___________percent.
27. The head of the accounting department at a major
software manufacturer has asked you to put together a pro forma statement of
the company’s value under several possible growth scenarios and the assumption
that the companyâs many divisions will remain a single entity forever. The manager is concerned that, despite the
fact that the firmâs competitors are comparatively small, collectively their
annual revenue growth has exceeded 50 percent over each of the last five
years. She has requested that the value
projections be based on the firmâs current profits of $3 billion (which have
yet to be paid out to stockholders) and the average interest rate over the past
20 years (9 percent) in each of the following profit growth scenarios:
a. Profits grow at an annual rate of 11 percent. (This one
is tricky.)
The firm’s value is zero
This growth rate is not possible
The firm will have to shut down at this growth rate
The firm’s value is infinite
Instructions: Round your responses to 2 decimal places.
b. Profits grow at an annual rate of 4 percent.
billion
c. Profits grow at an annual rate of 0 percent.
billion
d. Profits decline at an annual rate of 3 percent.
billion
28. A firm produces output according to a production
function:
Q = F(K,L) = min {4K,8L}.
a. How much output is produced when K = 2 and L = 3?
b. If the wage rate is $60 per hour and the rental rate on
capital is $20 per hour, what is the cost-minimizing input mix for producing 8
units of output?
Capital: ________
Labor: __________
c. How does your answer to part b change if the wage rate
decreases to $20 per hour but the rental rate on capital remains at $20 per
hour?
It does
not change.
Capital
and labor increase.
Capital
decreases and labor increases.
Capital
increases and labor decreases.
29.What is the value of a preferred stock that pays a
perpetual dividend of $220 at the end of each year when the interest rate is 3
percent?
Instruction: Round your response to the nearest dollar.
$________
30. The supply curve
for product X is given by QXS = -320 + 10PX .
a. Find the inverse supply curve.
P = ________ + _________Q
b. How much surplus do producers receive when Qx = 460? When
Qx = 1,040?
When QX = 460: $_______
When QX = 1,040: $____________
