Exam (elaborations)
ECON-B 251 EXAM #3 STUDY GUIDE WITH ALL ANSWERS
- Course
- Institution
ECON-B 251 EXAM #3 STUDY GUIDE WITH ALL ANSWERS
[Show more]
Content preview
ECON-B 251 EXAM #3 STUDY GUIDE WITH ALL ANSWERS1. 21,000: Sue quit her $40,000 per year job and opened a coffee shop that she calls
Top Brew. In the first year, Top Brew earned $200,000 in revenue. For the same year,
Top Brew paid $80,000 to employees in wages, spent $40,000 on ingredients such
as coffee beans, $15,000 rent for the building to house Top Brew. Sue also used
$50,000 of her personal savings to purchase equipment for Top Brew, which she
was earning $4,000 in interest each year. Assuming no depreciation in the value of
the equipment, Sue's economic profit from Top Brew for the year is $ .
2. The owner's time
Interest forgone
Depreciation: Which of the following are examples of implicit opportunity costs for
the firm?
Choose all that apply.
3. symmetric: Having equal amount of information is known as information.
4. principals and agents are more likely to have the same goals if the agent's
pay is tied to satisfying the principal's goals: The principal-agent problem sug-
gests
5. many, many, identical, Buyers and sellers, neither buyers nor sellers: In a
perfectly competitive market there are buyers, sellers producing
products. have full information and have market power.
6. the quantity used of at least one factor of production is fixed: The short run
is a period of time in which
7. 5: The above table shows the total product of producing pizzas. The ma rginal
product of the 4th worker is equal to pizzas.
8. fourth: The above table shows the total product of producing pizzas. Di minishing
returns begins when the pizzeria hires the worker.
1/5
, ECON-B 251 EXAM #3 STUDY GUIDE WITH ALL ANSWERS
9. 8.33: Patti's Pizza production function is shown in the above table. Patti ren ts three
ovens for $30 a day each and hires workers at a wage rate of $20 a day. If Patti
produces 18 pizzas per day, then her average total cost is $ .
2/5
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller HIGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75759 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now