Question :
41) Refer to Table 1-2. What Thuy Anh’s marginal benefit : 1244598
41) Refer to Table 1-2. What is Thuy Anh’s marginal benefit if she decides to stay open for three hours instead of two hours?
A) $0
B) $20
C) $25
D) $45
E) $70
42) Refer to Table 1-2. What is Thuy Anh’s marginal cost if she decides to stay open for three hours instead of two hours?
A) $0
B) $16
C) $25
D) $32
E) $45
43) Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month. She is considering moving to a studio apartment which she will not have to share with anyone. The studio apartment rents for $950 per month. Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment. Soo Jin is as rational as any other person. As an economics major, you rightly conclude that
A) Soo Jin did not have a choice; her roommate was a slob.
B) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $250.
C) Soo Jin figures that the benefit of having her own place (as opposed to sharing) is at least $950.
D) the cost of having one’s own space outweighs the benefits.
44) If the marginal cost of keeping a doctor’s office open one additional hour per day is $200, then the doctor should keep the office open for one extra hour
A) only if the marginal benefit she receives is greater than $200 plus an acceptable profit margin.
B) as long as the marginal benefit she receives is just equal to or greater than $200.
C) as long as the marginal cost does not rise.
D) until the marginal benefit she receives reaches zero.
45) Consider the following statements:
a. Consumers buy more MP3 players from an electronics store that sells MP3 players at a lower price than other rival electronics stores in the area.
b. Schools take steps to increase security since they believe it is more costly to allow vandalism than to hire additional security guards.
c. Citrus growers produce more oranges when the selling price of oranges falls.
A) a only.
B) b only.
C) c only.
D) a and b.
E) a, b, and c.
46) A restaurant sells a large soft drink at a fixed price of $1.79. A term used by economists to describe the money received from the sale of an additional large soft drink is
A) marginal revenue.
B) gross earnings.
C) pure profit.
D) net benefit.
47) The ________ the sale of an additional unit of a product is a marginal benefit to the firm.
A) revenue received from
B) extra cost of
C) total value of
D) sales tax on
48) Which of the following is an example of a “how much” decision?
A) Dinah’s Diner is only open for breakfast and lunch. Dinah is trying to decide whether to open for dinner as well..
B) Zander has torn up his front yard and is debating whether to plant grass or install a rock garden..
C) You received a nice birthday check from your grandmother and are deciding on whether to spend it on a trip to New York or a trip to San Francisco.
D) Sergio quit his job to go back to school full time.
49) Pookie’s Pinball Palace restores old Pinball machines. Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2,000 once he is finished with the restoration. After having spent $300, Pookie discovers that he will need to rewire the entire machine at a cost of $1,100 in order to finish the restoration. Alternatively, he can sell the machine “as is” now for $1,000. What is his marginal benefit if he sells the machine “as is” now?
A) $300
B) $900
C) $1,000
D) The marginal benefit cannot be determined.
50) Pookie’s Pinball Palace restores old Pinball machines. Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2,000 once he is finished with the restoration. After having spent $300, Pookie discovers that he will need to rewire the entire machine at a cost of $1,100 in order to finish the restoration. Alternatively, he can sell the machine “as is” now for $1,000. What is the marginal cost of completing the task?
A) $300
B) $800
C) $1,100
D) $1,400
