Question : Table 4-6 Marko’s Polos Marginal Cost (dollars) : 1387433

 

 

Table 4-6

 

Marko’s Polos

Marginal Cost

(dollars)

1st shirt

$7

2nd shirt

10

3rd shirt

15

4th shirt

20

 

79) Refer to Table 4-6.  The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. If the market price of Marko’s polo shirts is $18,

A) Marko’s will produce four shirts.

B) producer surplus from the first shirt is $18.

C) producer surplus will equal $22.

D) there will be a surplus; as a result, the price will fall to $7.

 

 

80) Refer to Table 4-6.  The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. If the price of polo shirts increases from $15 to $20,

A) consumers will buy no polo shirts.

B) the marginal cost of producing the third polo shirt will increase to $20.

C) producer surplus will rise from $13 to $28.

D) there will be a surplus of polo shirts.

 

81) Refer to Table 4-6.  The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. If the market price of Marko’s polo shirts is $13, Marko’s will produce

A) 1 shirt.

B) 2 shirts.

C) 3 shirts.

D) 4 shirts.

 

 

82) Refer to Table 4-6.  The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. If the market price of Marko’s polo shirts is $30, Marko’s will produce

A) 0 shirts.

B) 1 shirt.

C) 3 shirts.

D) 4 shirts.

 

 

83) Refer to Table 4-6.  The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. If the market price of Marko’s polo shirts is $30, producer surplus is

A) $0.

B) $16.

C) $52.

D) $68.

 

84) Refer to Table 4-6.  The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. If the price of polo shirts decreases from $15 to $10,

A) consumers will buy no polo shirts.

B) the marginal cost of producing the third polo shirt will increase to $25.

C) producer surplus will fall from $13 to $3.

D) there will be a shortage of polo shirts.

 

 

85) The area above the market supply curve and below the market price

A) is equal to the total amount of producer surplus in a market.

B) is equal to the marginal cost of the last unit produced.

C) is equal to the total amount of economic surplus in a market.

D) is equal to the total cost of production.

 

 

86) Consumer surplus in a market for a product would be equal to the area under the demand curve if

A) producer surplus was equal to zero.

B) marginal cost was equal to the market price.

C) the product was produced in a perfectly competitive market.

D) the market price was zero.

 

87) Which of the following statements is not true?

A) Consumer surplus measures the difference between the highest price a consumer is willing to pay for a product and the price she actually pays.

B) Marginal benefit is the additional benefit to a consumer from consuming one more unit of a product.

C) Consumer surplus measures the net benefit from participating in a market.

D) Producer surplus measures the total benefit received by producers from participating in a market.

 

 

88) A supply curve shows

A) the quantities sold at different prices.

B) the marginal cost of producing one more unit of a good or service.

C) the marginal benefit from buying one more unit of a good or service.

D) the total cost of producing different quantities of a good or service.

 

 

89) The willingness of consumers to buy a product at different prices is shown on a

A) demand curve.

B) supply curve.

C) production possibilities frontier.

D) marginal cost curve.