ECON 20A Study Guide - Final Guide: Marginal Revenue, Economic Equilibrium, Price Ceiling
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1) Which of the following inputs can be changed in the short run?
Land owned |
Labor employed |
Machinery |
Office Space |
2) In a perfectly competitive market:
price is always equal to marginal revenue. |
price is always greater than marginal revenue. |
price is always greater than marginal cost. |
price is always equal to marginal cost. |
3) The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.
Number of Workers | Total Output (units) | Variable Costs ($) | Fixed Costs ($) |
0 | 0 | 0 | 150 |
1 | 25 | 10 | 150 |
2 | 55 | 20 | 150 |
3 | 86 | 30 | 150 |
4 | 110 | 40 | 150 |
5 | 130 | 50 | 150 |
6 | 145 | 60 | 150 |
7 | 155 | 70 | 150 |
8 | 160 | 80 | 150 |
Refer to the table above. Suppose that the only variable input that the firm uses is labor. What is the wage paid to a worker in the firm?
4) A firm produces 200 units of a good when it employs 7 workers. The marginal product of the eighth worker is 46 units. If the eighth worker is hired, the firm's total product will increase to:
246 units. |
208 units. |
322 units. |
228 units. |
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is an average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.
Price ($) |
Quantity |
|
Adults |
Children |
|
5 |
15 |
20 |
6 |
14 |
18 |
7 |
13 |
16 |
8 |
12 |
14 |
9 |
11 |
12 |
10 |
10 |
10 |
11 |
9 |
8 |
12 |
8 |
6 |
13 |
7 |
4 |
14 |
6 |
2 |
Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quantity (i.e. 10, 27, 4)
Price |
Quantity |
Total Revenue |
Marginal Revenue |
Marginal Cost |
Total Cost |
MR-MC |
Profit |
6 |
84 |
5 |
30 |
34 |
|||
13 |
91 |
7 |
5 |
35 |
2 |
56 |
|
12 |
8 |
96 |
5 |
5 |
40 |
0 |
|
9 |
99 |
3 |
5 |
45 |
-2 |
54 |
|
10 |
100 |
1 |
5 |
50 |
-4 |
50 |
|
9 |
11 |
99 |
-1 |
5 |
55 |
-6 |
|
12 |
96 |
-3 |
5 |
60 |
-8 |
36 |
|
7 |
91 |
-5 |
5 |
65 |
-10 |
26 |
|
6 |
14 |
84 |
-7 |
5 |
70 |
-12 |
|
5 |
15 |
75 |
-9 |
5 |
75 |
-14 |
0 |