代写MGMT5245 Practice Questions for Exam 1代写数据结构语言
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Practice Questions for Exam 1
MULTIPLE CHOICE SECTION
1. A firm practices input substitution when it
a. retrains Joe the welder as a painter and Pat the painter as a welder.
b. buys extra machines for its workers to use.
c. allows fixed cost to become variable.
d. replaces unskilled labor with automated machinery.
2. A firm uses two inputs, A and B. At its optimal choice of input proportions,
a. MRP of A = MRP of B.
b. MRA/PA = MRB/PB.
c. MPP of A = MPP of B.
d. All of the above are correct.
3. Company A manufactures a single automotive component. It had total revenue of $100,000 and an economic profit of $20,000. What is the price of the component it manufactures?
a. ($100,000/quantity sold).
b. ($100,000/quantity produced).
c. ($100,000/quantity sold) − average cost of the product
d. ($100,000/quantity produced) − average cost of the product
4. A firm has positive fixed cost and positive variable cost. At its current level of output, marginal cost equals average cost. The firm must
a. not be producing at its profit-maximizing level of output.
b. be producing the quantity that minimizes average cost.
c. be operating at a point at which total variable cost equals total fixed cost.
d. be earning negative profit.
5. In the short run,
a. all of the firm's input quantities, including plant size, become adjustable.
b. firms are not constrained by past decisions.
c. firms have relatively little opportunity to change production processes.
d. all of the firm's current commitments come to an end.
6. At a given level of wheat output, one more unit of labor would produce 10 extra bushels, and one more unit of seed would produce 30 extra bushels. A unit of labor costs $6, and a unit of seed costs $12. The farmer should
a. produce less wheat.
b. buy only seed.
c. buy more seed and less labor.
d. buy less seed and more labor.
Table 2
6 346 490 600 692 775 846
5 316 448 548 632 705 775
4 282 400 480 564 632 692
CAPITAL 3 245 346 423 490 548 600
2 200 282 346 400 448 490
1 141 200 245 282 316 346
0 1 2 3 4 5 6
LABOR
7. Table 2 shows a production relationship. Assuming the capital stock is fixed at three units and the cost per day of labor is $65, what is the most labor that it is efficient to hire if the product price is $1 per unit?
a. 2
b. 3
c. 4
d. 5
8. Table 2 shows a production relationship. The cost of one day of labor is $65 and the product price is $1 per unit. How much will the labor input increase if the capital stock were increased from 3 to 4?
a. from 3 to 4
b. from 4 to 5
c. from 4 to 6
d. stays the same
SHORT ANSWER SECTION:
Question 1:
When the price is below the equilibrium level, what happens to the market of the commodity being sold? Explain your answer.
Answer:
Question 2:
The demand for home computers has increased yet the price has fallen. Explain this apparent paradox.
Answer:
Question 3:
How are the following demand curves likely to shift in response to the indicated changes? Explain your answer for each of the following. (5 points)
a. The effect of a drought on the demand curve for umbrellas
b. The effect of higher popcorn prices on the demand curve for movie tickets
c. The effect of a decline in the price of Coca-Cola on the demand curve for coffee
Answer:
Question 4:
Why does quantity demanded decrease when price increases? Explain your answer.
Answer:
Question 5:
Peter picks a peck of pickled peppers using 10 units of labor and two pepper-picking machines. The last worker hired picked 100 peppers, and the last machine added 1,000 peppers. If labor can be hired at $5 a pepper picker and machines cost $5,000, what advice do you have for Peter?
Answer:
Question 6:
Using marginal analysis, explain why many restaurants and coffee shops offer low-cost refills on beverages (for example, a shop may charge $1.50 for a cup of coffee and only $.50 for a refill).
Answer: