Bus 302L Micro Economics Exam Study Guide with Complete Solutions
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Course
BUS 302L
Institution
BUS 302L
Bus 302L Micro Economics Exam Study
Guide with Complete Solutions
Because of scarcity, every economic decision involves - Answer-a trade off
Ryan spends an hour studying instead of going for a bike ride. Assume studying and bike riding were
Ryan's only options for that hour. The opportunity cos...
A firm's total cost is $10,000. Its variable cost is $5,500. What is the firm's fixed cost? - Answer✔✔-
$4,500
Which of the following is a correct definition of marginal cost (MC)? - Answer✔✔-It is the added cost
that results from producing one more unit of a good.
A firm will shut down if - Answer✔✔-P < AVC at all levels of output
A negative externality exists when - Answer✔✔-Jack buys a good from Bill, and this makes Todd worse
off
Hannah runs a manicuring shop. Currently, her shop provides 50 manicures per day, and the shop's daily
total cost (TC) is $600. If Hannah decides to provide 25 more manicures per day, the total cost will rise by
$75 per day. If Hannah does decide to increase production by this much, what will the shop's daily
average total cost (ATC) be? - Answer✔✔-$9.00
If Ross decides to ride his bike this afternoon, he will miss his favorite television show, and he won't have
time to study for his economics test. If Ross doesn't ride his bike, he'll choose to watch the television
show instead. (He cannot both watch television and study for the test.) Ross's opportunity cost of riding
the bike is - Answer✔✔-the value of watching the television show plus the value of studying for the test
The opportunity cost of purchasing an item is - Answer✔✔-the next best thing you could have done with
the time and money spent.
Most residents of Los Angeles think sushi and sashimi are very similar foods. What effect will an increase
in the price of sushi have on the demand curve for sashimi in Los Angeles? - Answer✔✔-the sashimi
demand curve will shift to the right
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