Price Marginal Product Variable Input 1 Variable Input 2 $20 $30 A B Fixed Input $40 60 Suppose you are the manager of Super Suds, a large manufacturer of laundry detergent that uses two variable inputs and one input that is fixed in the short-run. Refer to the table above. In the short run, 4-30 and B-45, but you expected the price of Input 1 to increase. If the price of Input 1 rises, which of the following is true? A) You should buy more of Input 1 and less of Input 2. B) You should buy more of Input 2 and less of Input 1. C) You should buy less of the Fixed Input. D) You should make no changes. All of the following are true regarding variable costs except which one? A) Variable costs are the sum of the costs paid for all variable inputs. B) Variable costs are equal to total cost minus fixed costs. C) Variable costs are the sum of the costs paid for all inputs. D) Variable costs change with changes in output. Granite Tops for You uses 15 units of capital at $5,000 per unit and employs 50 employees at a cost of $500 each. What is the company's fixed cost? A) $250,000 B) $500 C) $75,000 Which of the following is used to measure market structure and performance? B) Four-firm concentration ratio A) Eight-firm concentration ratio C) HHI (Herfindahl-Hirschman index) D) All of the answers are correct. An industry is comprised of 40 firms, each with an equal market share. What is the four-firm concentration ratio of this industry? A) 0.2 B) 0.1 C) 0.3 D) 0.4 D) $5,000 tly competitive market, then it will most likely
Price Marginal Product Variable Input 1 Variable Input 2 $20 $30 A B Fixed Input $40 60 Suppose you are the manager of Super Suds, a large manufacturer of laundry detergent that uses two variable inputs and one input that is fixed in the short-run. Refer to the table above. In the short run, 4-30 and B-45, but you expected the price of Input 1 to increase. If the price of Input 1 rises, which of the following is true? A) You should buy more of Input 1 and less of Input 2. B) You should buy more of Input 2 and less of Input 1. C) You should buy less of the Fixed Input. D) You should make no changes. All of the following are true regarding variable costs except which one? A) Variable costs are the sum of the costs paid for all variable inputs. B) Variable costs are equal to total cost minus fixed costs. C) Variable costs are the sum of the costs paid for all inputs. D) Variable costs change with changes in output. Granite Tops for You uses 15 units of capital at $5,000 per unit and employs 50 employees at a cost of $500 each. What is the company's fixed cost? A) $250,000 B) $500 C) $75,000 Which of the following is used to measure market structure and performance? B) Four-firm concentration ratio A) Eight-firm concentration ratio C) HHI (Herfindahl-Hirschman index) D) All of the answers are correct. An industry is comprised of 40 firms, each with an equal market share. What is the four-firm concentration ratio of this industry? A) 0.2 B) 0.1 C) 0.3 D) 0.4 D) $5,000 tly competitive market, then it will most likely
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Price
Marginal Product
Variable Input 1 Variable Input 2
$20
$30
A
B
Fixed Input
$40
60
Suppose you are the manager of Super Suds, a large manufacturer of laundry detergent that uses two variable
inputs and one input that is fixed in the short-run.
Refer to the table above. In the short run, 4-30 and B-45, but you expected the price of Input 1 to
increase. If the price of Input 1 rises, which of the following is true?
A) You should buy more of Input 1 and less of Input 2.
B) You should buy more of Input 2 and less of Input 1.
C) You should buy less of the Fixed Input.
D) You should make no changes.
All of the following are true regarding variable costs except which one?
A) Variable costs are the sum of the costs paid for all variable inputs.
B) Variable costs are equal to total cost minus fixed costs.
C) Variable costs are the sum of the costs paid for all inputs.
D) Variable costs change with changes in output.
Granite Tops for You uses 15 units of capital at $5,000 per unit and employs 50 employees at a cost of $500
each. What is the company's fixed cost?
A) $250,000
B) $500
C) $75,000
Which of the following is used to measure market structure and performance?
B) Four-firm concentration ratio
A) Eight-firm concentration ratio
C) HHI (Herfindahl-Hirschman index)
D) All of the answers are correct.
An industry is comprised of 40 firms, each with an equal market share. What is the four-firm concentration
ratio of this industry?
A) 0.2
B) 0.1
C) 0.3
D) 0.4
D) $5,000
tly competitive market, then it will most likely
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