quiz 4

Question 1
0 out of 1 points

Suppose a firm is collecting €1250 in total revenues and the total costs of its variable factors of production are €1000 at its current level of output. In the short run, one can predict that the firm will

Selected Answer: earn a profit.
Correct Answer: continue to operate.

Question 2
1 out of 1 points

Melissa is trying to decide how to divide her time between her jobs as a night-receptionist in the dormitory, which pays €9/hr for as many hour as she chooses to work, and typing papers for the students. She makes €2 for every paper she types. Melissa is indifferent between the two tasks, and the number of paper she can type depends on how many hours she types a day, as shown in the table below:

A second hour typing papers will yield additional earnings of _____

Selected Answer: €16
Correct Answer: €16

Question 3
0 out of 1 points

The difference between the price of a good and the marginal cost of that good is called

Selected Answer: profit
Correct Answer: producer surplus

Question 4
1 out of 1 points

To increase output from 33 to 66 units requires ______ extra employee-hours; to increase output from 66 to 99 units requires _____ extra employee-hours.

Selected Answer: 1;2
Correct Answer: 1;2

Question 5
1 out of 1 points

Suppose a firm is collecting €1700 in total revenues and the total costs of its variable factors of production are €1900 at its current level of output. One can predict that the firm will

Selected Answer: shutdown.
Correct Answer: shutdown.

Question 6
1 out of 1 points

What is the seller's reservation price when producing 14 units?

Selected Answer: €20
Correct Answer: €20

Question 7
1 out of 1 points

Total consumer surplus received by the buyers is

Selected Answer: €125
Correct Answer: €125

Question 8
0 out of 1 points

The