9/20/22, 6:17 PM Quiz-2: Attempt review

Dashboard / My courses / EFE / Quizzes, Jan-May 2022 / Quiz-2

Started on Thursday, 24 February 2022, 5:43 PM

State Finished
Completed on Thursday, 24 February 2022, 5:56 PM
Time taken 13 mins 38 secs
Grade 10.00 out of 13.00 (77%)

Question 1
Complete

Mark -0.50 out of 1.00

For a firm operating in perfectly competitive market, at the shutdown point

a. Total losses of the firm > Fixed cost of production

b. Total Revenue > Total Variable Costs

c. None among the given options

d. Price> Average Variable Costs

Your answer is incorrect.

The correct answer is:

Total losses of the firm > Fixed cost of production

Question 2
Complete

Mark -0.50 out of 1.00

When average product of labour is positive but declining, the marginal product of labour is

a. Negative

b. Any of the given options

c. Zero

d. Decreasing

Your answer is incorrect.

The correct answer is:

Any of the given options

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9/20/22, 6:17 PM Quiz-2: Attempt review

Question 3
Complete

Mark 1.00 out of 1.00

If L is the only variable factor used in the production of a good, and if the marginal product of L is 4 and the price of L is 5 (i.e., w=5), then the
marginal cost of producing the good is:

a. 4

b. None of the above

c. 5

d. 5

Your answer is correct.

The correct answer is:
5

Question 4
Complete

Mark 1.00 out of 1.00

You have the following information from a farmland

For labour = 3, Average productivity of labour is 150 kilograms of wheat. Marginal productivity of the fourth worker is 75 kilograms. What is
the total output with four workers.

a. 525

b. 225

c. 450

d. None among the given options

Your answer is correct.

The correct answer is:

525

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9/20/22, 6:17 PM Quiz-2: Attempt review

Question 5
Complete

Mark 1.00 out of 1.00

A monopolist demand function is of the form P = 100 − Q , and she faces a total cost function C = 4Q
2
. The monopolist charges a single
price to all her customers and maximizes profit. How much will the monopolist produce?

a. 8

b. 0

c. 10

d. None among the given options

Your answer is correct.

The correct answer is:

10

Question 6
Complete

Mark 2.00 out of 2.00

Suppose a price-taking firm produces 400 units at its optimal output level. At that output rate marginal cost is Rs. 200, average total cost is
Rs. 240, and average variable cost is Rs. 170. What can you determine about the market price that would force the firm to shut down in the
short run?

a. It is less than Rs. 170

b. It equals Rs. 200

c. It is between Rs. 170 and Rs. 240

d. None among the given options

e. It is between Rs. 170 and Rs. 240

Your answer is correct.

The correct answer is:

It is less than Rs. 170

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9/20/22, 6:17 PM Quiz-2: Attempt review

Question 7
Complete

Mark 2.00 out of 2.00

Suppose the firm is currently employing 20 workers (i.e., labour), the only variable input at a wage rate of Rs. 60.

For this level of labour (i.e., 20 workers), the average product of labour is 30. The total fixed cost is Rs. 3600. What is the average total cost?

a. None among the given options

b. 2

c. 3602

d. 8

Your answer is correct.

The correct answer is:
8

Question 8
Complete

Mark 2.00 out of 2.00

Sam opens a photocopying shop in the building he owns. He used to rent the entire building to his sister in law for Rs. 1,00,000 a year but
after opening his shop, he no loner rents it. To open the shop, Sam quit his job as a accountant, which paid Rs. 8,00,000 a year. As a shop
owner, Sam has to pay Rs. 4,00,000 a year as wages for his staff and the utilities bill is Rs. 95,000 a year (i.e., costs like electricity bill, internet
charges, and others). To cover his start up cost, he used up all of his savings which earned Rs. 46,000 in interest from bank deposit.

What are his implicit cost?

a. None among the given options

b. Rs. 9,00,000

c. Rs. 9,46,000

d. Rs. 8,46,000

e. Rs. 1,46,000

Your answer is correct.

The correct answer is:

Rs. 9,46,000

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9/20/22, 6:17 PM Quiz-2: Attempt review

Question 9
Complete

Mark 1.00 out of 1.00

Identify whether Q = 3LK 2 represent Increasing or Constant or Decreasing Returns to Scale?

a. Increasing

b. Decreasing

c. Constant

d. None of the above

Your answer is correct.

The correct answer is:

Increasing

Question 10

Complete

Mark 1.00 out of 1.00

The profit maximizing level for monopolist occurs at a point where

a. Total Revenue is maximized

b. Marginal Revenue = Marginal Costs

c. Slope of isoquant = Slope of isocost

d. Total cost is minimized

Your answer is correct.

The correct answer is:

Marginal Revenue = Marginal Costs

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