GCU ECN-361 Final Exam Study Guide
Questions and Answers
125 - - -
correct answer ✅A firm is a monopolist for a particular product.
The table shows the demand curve for that product. The firm has
the same constant marginal cost of $4 for every unit
If the firm operated to maximize profits, how much profit will it
earn?
a.225
b.62.50
c.125
d.24
4---
correct answer ✅Refer to Table 1: Suppose the competitive firms
selling price is $4 and the marginal factor of labor is $600, how
many units will the firms hire?
a. 4
b. 5
c. 6
,GCU ECN-361 Final Exam Study Guide
Questions and Answers
d. 3
suppose the firm sells its output for $14 per unit, and it pays each
of its workers $33 per day, When will the number of workers
increase from 4 to 5....
a. marginal rev is $42 per unit of output and the marginal cost is
$33 per unit of output
b. value of the marginal product of labor is 99 and the marginal cost
per unit of output is 33
c. value of the marginal cost product of labor is 42 and the marginal
cost is about 11
d. firms profit decreases - - -
correct answer ✅c. value of the marginal cost product of labor is
42 and the marginal cost is about 11
why doesn't the total cost curve begin at the origin point (0,0)
a. because variable costs are positive when output is 0
b. because fixed cost are positive when output is 0
c. because the firm is producing the efficient scale
,GCU ECN-361 Final Exam Study Guide
Questions and Answers
d. because the firm is maximizing profits - - -
correct answer ✅b. because fixed cost are positive when output is
0
which of these firms experiences economies of scale across the
entire range of output
a. 1
b. 2
c. 3
d. 4 - - -
correct answer ✅a. 1
for the firm whose production function and costs are specified in
this table, its average total cost curve is
a. constant
b. decreasing
c. increasing
d. u-shaped - - -
correct answer ✅u shaped
, GCU ECN-361 Final Exam Study Guide
Questions and Answers
suppose that a firm has only one variable input, labor, and firm
output is zero when labor is zero. When a firm hires 6 workers the
firm produces 90 units of output. Fixed cost of production are $6
and the variable cost per unit of labor is $10. The marginal product
of the 7th unit is 4. Given this information, what is the marginal
cost of product when the firm hires the 7th worker?
a. 1.5
b. 2.5
c. 5
d. 10 - - -
correct answer ✅b. 2.5
this figure depicts a situation in a monopoly market, how much
consumer surplus will be derived from the purchase of this product
at the monopoly price?
a. 450
b. 900
c. 2100
Questions and Answers
125 - - -
correct answer ✅A firm is a monopolist for a particular product.
The table shows the demand curve for that product. The firm has
the same constant marginal cost of $4 for every unit
If the firm operated to maximize profits, how much profit will it
earn?
a.225
b.62.50
c.125
d.24
4---
correct answer ✅Refer to Table 1: Suppose the competitive firms
selling price is $4 and the marginal factor of labor is $600, how
many units will the firms hire?
a. 4
b. 5
c. 6
,GCU ECN-361 Final Exam Study Guide
Questions and Answers
d. 3
suppose the firm sells its output for $14 per unit, and it pays each
of its workers $33 per day, When will the number of workers
increase from 4 to 5....
a. marginal rev is $42 per unit of output and the marginal cost is
$33 per unit of output
b. value of the marginal product of labor is 99 and the marginal cost
per unit of output is 33
c. value of the marginal cost product of labor is 42 and the marginal
cost is about 11
d. firms profit decreases - - -
correct answer ✅c. value of the marginal cost product of labor is
42 and the marginal cost is about 11
why doesn't the total cost curve begin at the origin point (0,0)
a. because variable costs are positive when output is 0
b. because fixed cost are positive when output is 0
c. because the firm is producing the efficient scale
,GCU ECN-361 Final Exam Study Guide
Questions and Answers
d. because the firm is maximizing profits - - -
correct answer ✅b. because fixed cost are positive when output is
0
which of these firms experiences economies of scale across the
entire range of output
a. 1
b. 2
c. 3
d. 4 - - -
correct answer ✅a. 1
for the firm whose production function and costs are specified in
this table, its average total cost curve is
a. constant
b. decreasing
c. increasing
d. u-shaped - - -
correct answer ✅u shaped
, GCU ECN-361 Final Exam Study Guide
Questions and Answers
suppose that a firm has only one variable input, labor, and firm
output is zero when labor is zero. When a firm hires 6 workers the
firm produces 90 units of output. Fixed cost of production are $6
and the variable cost per unit of labor is $10. The marginal product
of the 7th unit is 4. Given this information, what is the marginal
cost of product when the firm hires the 7th worker?
a. 1.5
b. 2.5
c. 5
d. 10 - - -
correct answer ✅b. 2.5
this figure depicts a situation in a monopoly market, how much
consumer surplus will be derived from the purchase of this product
at the monopoly price?
a. 450
b. 900
c. 2100
