2. Consider the information in the table above. Which of the following statements is true? a. Bonnie has an absolute adv

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2 Consider The Information In The Table Above Which Of The Following Statements Is True A Bonnie Has An Absolute Adv 1 (42.74 KiB) Viewed 36 times

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2. Consider the information in the table above. Which of the following statements is true? a. Bonnie has an absolute advantage in the production of dumplings. b. Bonnie has a comparative advantage in the production of dumplings c. Angus has a comparative advantage in the production of dumplings. d. Angus has an absolute advantage in the production of dumplings. e. Botha and care correct.** 3. Consider the information in the table above What is the range of possible prices of pork rolls (in terms of dumplings) at which both Angus and Bonnie are willing to exchange? a. A price of pork rolls between 1/5 and 1/4 dumplings. b. A price of pork rolls between 4 and 5 dumplings.** c. A price of pork rolls between 2/3 and 5/6 dumplings d. A price of pork rolls between 1.5 and 6/5 dumplings. e. None of the above Unique ID: 4. Consider the competitive market for bananas, with 100 identical consumers. Each consumer has a demand curve for bananas given by P = 25 - 4s. The market supply of bananas is given by Q = 100P-500. Which of the following represents the market equilibrium? a. p. = 5.2, Q* = 20 b. P* = 12.5, Q" 750 c. p = 15, Q* - 1000 d. p*= 20, Q*= 1500 e. None of the above 5. Consider a competitive market with 100 identical consumers and 100 identical firms. The demand curve for each individual is given by the following: P = 60 - 9. The supply curve for each firm is given by the following: P = 24. In the short run) market equilibrium: a Price is equal to 40 and quantity is equal to 20. b. Consumer surplus is equal to 20 000 and producer surplus is 40 000. c. Each firm produces 20 units and each consumer consumes 15 units. d. Price is equal to 2000 and quantity is equal to 40. e. None of the above.
9. Assume that a competitive firm has a cost function of TC = 210 + 2q + q?, where q is the level of output. If price in the market is $30, which statement is true? a. The firm produces 0 units in the short run and makes an economic loss; this outcome is not a long-run equilibrium. b. The firm produces 14 units and makes an economic profit; this outcome is not a long- run equilibrium C. The firm produces 16 units and makes an economic loss; this outcome is not a long-run equilibrium. d. The firm produces 20 units and makes zero economic profit; the market is in its long-run equilibrium. e. None of the above.
10. The supply of sand is perfectly price elastic at P = 10. If the demand for sand is Q = 160 - 4P, what is the producer surplus in the market equilibrium? a. 0** b. 1200 c. 1800 d. 2400 e. None of the above. 11. Which statement is true? a. A deadweight loss is created by a monopolist because it charges a price greater than the marginal cost of the last unit sold. b. A monopolist charging all consumers the same price always sets this price such that it sells on the elastic section of the market demand curve. C. A single price monopolist always produces at minimum average total cost. d. Both a and b are correct. ** e. a, b and care correct. 12. Consider a monopolist with a constant marginal cost of $20 per unit produced facing a market demand curve of Q = 80 - 2P, where P is market price and is the quantity sold. If the monopolist sets the same price for all consumers, what is its profit-maximising price (Pm) and quantity (am)? a. Pm = $30; qm = 20 units ** b. Pm = $15; qm = 20 units C. Pm = $40; qm = 20 units d. Pm = $0; qm = 40 units e. Pm = $40; qm = 40 units =
14. Christian likes attending music concerts and theatre plays. If his income rises with 10%, ceteris paribus, he goes to 15% more music concerts and he attends 10% fewer theatre plays. Based on this information about Christian's consumption of both goods, we can say that: a. Music concerts and theatre plays are substitute goods for Christian. b. Music concerts and theatre plays are complements for Christian. c. Music concerts are an inferior good and theatre plays are a normal good. d. Music concerts and theatre plays are both normal goods. e. Music concerts are a luxury good. ** 15. A competitive industry currently consists of 50 identical firms. An individual firm's total cost function is given by TC = q2 + 450 and its marginal cost MC = q, where is the quantity supplied by the firm. Market demand is given by Q = 4000 - 5P, where Q is the market quantity demanded and P is the market price. In the long run market equilibrium, how much will each firm produce? a. q = 0 b. q =9 c. q = 30 * d. q = 45 e. None of the above