Exam (elaborations)
ECON 3020 Exam -2 Questions answers latest update
- Course
- ECON 3020
- Institution
- University Of Virginia
ECON 3020 Exam -2 Questions answers latest update
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ECON 3020 Exam #2Both the monopolist and the firm in pure competition set their quantity so that
marginal revenue equals marginal cost. - True
A fixed factor is a factor of production that is used in fixed proportion to the level
of output. - False
The economist's distinction between the long run and the short run captures the
idea that quantities of some factor inputs can be varied in the long run but not in
the short run. - True
Marginal cost curves are always upward sloping. - False
If there are constant returns to scale, then doubling the amount of every input
will exactly double the amount of output. - True
The economist's distinction between the long run and the short run captures the
idea that quantities of some factor inputs can be varied in the short run but not in
the long run. - True
An economic situation is Pareto efficient only if there is no way to make someone
better off. - True
, The area under the marginal cost curve measures total variable costs - True
A perfectly competitive market has 100 buyers and 20 sellers. Each buyer's
demand function is:
D(p) = 26 - 2.5p
Each seller's supply function is:
S(p) = p/2
Find the market demand and market supply functions and calculate the
equilibrium price and quantity.
The equilibrium price is
and the equilibrium quantity is - 10, 100
Mitchell Energy uses many inputs to produce oil and natural gas, but for the
purposes of describing their production process, we will focus on the choice of
quantities for two inputs: gel, and ``slick water'' (water with a small amount of
bleach and soap). Nick Steinsberger discovered that either gel OR ``slick water''
could work for fracking.
Suppose that 1 gallon of ``slick water'' is required to produce one barrel of oil, no
matter how much or how little oil is being produced; 3 gallons of gel is required to
produce 1 barrel of oil.
Which of the following production functions is the best match for the firm
described above? (G gallons of gel and S is gallons of "slick water", and y is barrels
of oil.) - y=G/3+S
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