# GCU ECN601 exam 1 2019

Question # 00726878 Posted By: mac123 Updated on: 06/04/2019 03:44 AM Due on: 06/04/2019
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Question

Exam 1 ECN 601

1. An example of a price floor is:
2. Use the table provided to answer the following question. If hiring the fourth worker increases total product by 50 units and the price of each unit is \$15:
3. In an oligopoly, firms will tend to compete on the basis of price.
4. A car dealership union negotiates a contract that dramatically increases the salaries of all salesmen. If one of the salesmen is thinking of changing careers to be a hardware salesman, his opportunity cost:
5. If the cross-price elasticity of demand between two goods is negative, then:
6. Jim saw a decrease in the quantity demanded for his firm's product from 8,000 to 6,000 units per week when he raised the price of the product from \$200 to \$250. What is Jim's own price elasticity of demand?
7. A business produces 5,000 units per month. It spends \$12,000 on raw materials. It pays wages of \$20,000. Other costs include \$50,000 for rent, paid by the month. In order to break even, the selling price per unit will have to be:
8. A buyer values a house at \$525,000 and a seller values the same house at \$485,000. If sales tax is 8% and is levied on the seller, then what would be the lowest price at which the seller would be willing to sell?
9. Peter's Pizzeria sells both pizzas and soda. It wants to increase the sales of its pizzas. Assuming that the pizza and the sodas are complements, which of these strategies can it employ?
10. The difference between the minimum price the producer is willing to accept and the price the producer actually receives for a product is referred to as:
11. Use the table provided to answer the following question. What is the marginal revenue from producing the fourth unit?
12. A firm sells 1,000 units per week. It charges \$15 per unit, the average variable costs are \$10, and the average fixed costs are \$25. In the long run, the firm should:
13. At a price for which quantity demanded exceeds quantity supplied, a __________ is experienced, which pushes the price __________ toward its equilibrium value.
14. Use the table provided to answer the following question. If the firm hires eight workers, the total fixed costs is:
15. The government decided to reduce taxes on fast-food to increase tax revenue. The government assumes that fast-food products have:
16. Which of the following describes a firm?
17. Price ceilings cause:
18. Which of the following factors would shift the supply curve for ice cream to the right?
19. A company invested \$400,000 in a technology that reduced the overall costs of production by reducing their cost per unit from \$2 to \$1.85. Later, a manager has an opportunity to outsource production to another company at a cost per unit of \$1.75. If you are the manager, you:
20. In general, the smaller the price elasticity:
21. A firm sells 1,000 units per week. It charges \$70 per unit, the average variable costs are \$25, and the average fixed costs are \$65. In the short run, the firm should:
22. Use the table provided to answer the following question. How many units should the profit maximizing firm produce?
23. A manager invests \$20,000 in equipment that would help the company reduce it’s per unit costs from \$15 to \$12. He expects the equipment to be in use for the next seven years. After two years, he realizes that if he outsourced the production, the unit cost would be \$7 instead. At this point what should the senior manager do?

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1. ## Solution: GCU ECN601 exam 1 2019

Tutorial # 00727255 Posted By: mac123 Posted on: 06/04/2019 03:45 AM
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