Question : Table 4-2 Consumer Willingness to Pay Violet : 1388166

 

 

Table 4-2

 

Consumer

Willingness to Pay

Violet

$48

Walter

  40

Xavier

  30

Yolanda

  24

Zachary

  14

 

 

21) Refer to Table 4-2.  The table above lists the highest prices five consumers are willing to pay for a concert ticket.  If the price of one ticket falls from $50 to $20

A) only three tickets will be sold.

B) consumer surplus decreases from $48 to $24.

C) consumer surplus increases from $0 to $62.

D) everyone will buy a ticket.

 

22) The additional cost to a firm of producing one more unit of a good or service is the

A) minimum cost.

B) total cost.

C) opportunity cost.

D) marginal cost.

 

 

Table 4-3

 

Marko’s Polos

Marginal Cost

(dollars)

1st shirt

$7

2nd shirt

10

3rd shirt

15

4th shirt

20

 

23) Refer to Table 4-3.  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.

 

 

24) Refer to Table 4-3. 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.

 

25) Refer to Table 4-3.  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.

 

 

26) Refer to Table 4-3.  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.

 

 

27) Refer to Table 4-3.  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.

 

28) Refer to Table 4-3. 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.

 

 

29) 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.

 

 

30) 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.