Solutions to Midterm 2 - General Economics | ECONOM 1051, Exams of Managerial Economics

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Midterm 2 Multiple Choice Identify the choice that best completes the statement or answers the question. A fA 1. On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product? The farmer is able to produce 5,600 bushels of wheat when he hires 4 workers. b. The farmer is able to produce 5,800 bushels of wheat when he hires 4 workers. c. The farmer is able to produce 6,000 bushels of wheat when he hires 4 workers. d. All of the above are correct. 2) This table refers to five possible buyers’ willingness to pay for a case of Vanilla Coke. Table 7-2 BUYER WILLINGNESS TO PAY DAVID $8.50) LAURA {| $7.00.4 MEGAN $5.50" MALLORY $4.00 Ss AUDREY $3.50 Refer to Table 7-2. If the market price is $5.50, the consumer surplus in the market will be a. $3.00. b. $4.50. c. $15.50. d. $21.00. . Refer to Table 7-2. If the price of Vanilla Coke is $6.90, who will purchase the good? all five individuals Megan, Mallory and Audrey David, Laura and Megan David and Laura Bos P