<ol>
<li>C (A decrease in unemployment means resources are being used more efficiently, but not that there are more resources available)</li>
<li>D (The price is constant regardless of output)</li>
<li>C (The optimal is at the point where MR=MC. The price is then of course determined by the demand at that output level)</li>
<li>(I believe normal goods are assumed unless otherwise stated)</li>
<li>A (Just look at a graph…MR<AR… fig 3, for example)</li>
</ol>
<p>I didn’t do all the questions. Please let me know why you answered differently the questions you answered differently (If I’m wrong, that is).</p>
<ol>
<li>you’re correct. I marked E originally, switching it to C on my paper. However, I accidentally typed E on the post.</li>
<li>Yeah, thats what I thought.
28: I just couldn’t read the graphs on my laptop. You are correct.</li>
<li>I agree. That’s why I chose the answer I did.</li>
<li>I marked A, I don’t know why I typed B.
Thank you!</li>
</ol>
<p>isn’t #23 B? If two goods are similar to substitutes, an increase in the price of one would lower that product’s demand, which increases the demand for the other product.</p>
<p>For 28, what’s the difference between A and C besides the fact that I’ve never seen A before?</p>
<p>33, doesn’t the burden always affect both consumer and producer?</p>
<ol>
<li><p>In Figure 4 the “law of diminishing returns” sets in with the addition of the _____ worker.
A. 1
B. 2
C. 4
D. 7
E. 8</p></li>
<li><p>If a natural disaster occurs that adversely affects production and shipping,
A. the firm’s supply curve will shift to the right
B. the firm’s demand curve will shift to the right
C. the firm’s demand curve will shift to the left
D. the firm’s supply curve will shift to the left
E. Neither curve will shift, but instead movement will be along each curve</p></li>
<li><p>If supply and demand both increase, we can correctly conclude that</p></li>
</ol>
<p>I. Equilibrium price will rise
II. Equilibrium price is indeterminate
III. Equilibrium quantity will rise
IV. Equilibrium quantity is indeterminate</p>
<p>A. I only
B. I and III only
C. II and IV only
D. II and III only
E. I and IV only
isn’t this one E?</p>
<p>and is 27 B?</p>
<ol>
<li><p>If one firm in a perfectly competitive industry experiences a technological breakthrough that lowers only that firm’s cost of production, which of the following correctly describes the effect on this firm’s price, quantity, and profit?</p>
<p>Price Quantity Profit
A. decrease decrease decrease
B. decrease increase increase
C. no change decrease increase
D. no change increase increase
E. increase increase increase
isn’t this one B?</p></li>
</ol>
<p>Quantity Average Average Marginal
of Output Variable Cost Total Cost Cost</p>
<ol>
<li> Refer to Figure 14. If product price is $47.00, to maximize profits this firm will produce:</li>
</ol>
<p>A. zero, the firm will lose money by producing any level of output
B. zero in the short run, but 6 in the long run
C. zero in the long run, but 6 in the short run
D. 1 in the short run, but 7 in the long run
E. 7 in the long run, but 1 in the short run</p>