back start next[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [ 44 ] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] 44 various quantities (in thousands) of cars per minute:TC (S)0 103 25At which of these outputs is average variable cost minimized? (a) 0 (b) 1 (c) 2 (d) 3 (e)4.73. If in producing 10 units fixed costs are \$7 per unit, variable costs are \$5 per unit, and the price is \$15 per unit, then total profits are: (a) \$10 (b) \$30 (c)\$15 (d)\$12 (e)\$2.74. Which of the following is always true for a price-taking firm? (a) MR = P = minimum (b) AR = TR = P (c) MR = AR = P (d) = TC = MC (e) none of the above.75. The short run marginal cost schedules of two oil wells vary with barrels produced (B) as follows:Well 18 MC(\$)10 1011 12Well 2 MC(\$)89 690 891 12Assuming average variable cost is covered, what will be the combined producdon from these two wells if the priceofoilis\$12? (a) 24 (b) 102 (c) 12 (d) 300 (e) none of the above.76. During the "energy crisis" of the 1970s the government imposed "two der" price controls upondomestic crude oil, seidng die maximum prices at ferent levels. Suppose there were 1000 wells like th of Well 1 and 1000 like Well 2. Suppose further the ceiling price for t) pe 1 wells was \$10 per barrel au the ceiling price for npc 2 wells was \$6 per barrel Then (assuming the controls were effecdve) the production would have been; (a) 99,000 (b) 66 (c) 122,000 (d) 10,000 (e) none ofthese.77. Suppose further that the government drops above two tier pricing system in favor of a single imum price of \$8 per barrel. Then total productifi will; (a) rise by 10,000 barrels (b) rise by 80,000 rels (c) stay the same (d) fall by 14,000 barr (e) none of the above.78. Given the circumstances in the above que.sd? by how much would dte total costs of produt change? (a) no change (b) theyd fall by S25,0fl (c) dieyd fall by \$10,000 (d) dieyd fall bv S60.C (e) theyd fall by \$2,000.79. In this case price controls have caused: (aJ waste of resources (b) inefficiency (c) operadij inside the producdon possibility curve (d) a loss social welfare (e) all of the above. 80. Which of the following do you suppose liki the two tier policy? (a) the Deparonent of Enetf (b) refineries favored with special "enddements"f buy the cheap oil (c) consumerists (d) econonit (e) all ofthe above but (d).NOTESNOTES[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [ 44 ] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75]