Econ 528 Midterm ULL || QUESTIONS WITH ALL
PASSED SOLUTIONS!!
A firm's managers are constrained by
A) consumers.
B) workers.
C) government.
D) All of the above. correct answers D.) All of the above
2) Which of the following would be categorized as an opportunity cost?
a. not being able to spend your $10,000 savings if you sink the money in your business
b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only
B) a and c only
C) b and c only
D) all of the above correct answers A) a only
3) Golda Rush quit her job as a manager for Home Depot to start her own hairdressing salon,
Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which
was earning 5 percent interest), and borrowed $10,000 from a close friend, agreeing to pay 5
percent interest per year.
In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000,
and incurred another $15,000 on equipment and hairdressing material. Based on this
information, what is the amount of her implicit costs?
A) $80,000
B) $70,000
C) $42,000
D) $41,500 correct answers Answer: D
4) Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-
maximizing quantity?
A) 300 units
B) 400 units
C) 500 units
D) 600 units correct answers B) 400 units
5) Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total
revenue?
A) $2,400
B) $3,200
C) $4000
D) $4,800 correct answers B) $3,200
9) Price discrimination is
PASSED SOLUTIONS!!
A firm's managers are constrained by
A) consumers.
B) workers.
C) government.
D) All of the above. correct answers D.) All of the above
2) Which of the following would be categorized as an opportunity cost?
a. not being able to spend your $10,000 savings if you sink the money in your business
b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only
B) a and c only
C) b and c only
D) all of the above correct answers A) a only
3) Golda Rush quit her job as a manager for Home Depot to start her own hairdressing salon,
Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which
was earning 5 percent interest), and borrowed $10,000 from a close friend, agreeing to pay 5
percent interest per year.
In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000,
and incurred another $15,000 on equipment and hairdressing material. Based on this
information, what is the amount of her implicit costs?
A) $80,000
B) $70,000
C) $42,000
D) $41,500 correct answers Answer: D
4) Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-
maximizing quantity?
A) 300 units
B) 400 units
C) 500 units
D) 600 units correct answers B) 400 units
5) Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total
revenue?
A) $2,400
B) $3,200
C) $4000
D) $4,800 correct answers B) $3,200
9) Price discrimination is
