ECN 5015 Midterm

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Question 1 2 out of 2 points mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"MS Mincho"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} A clinic uses doctors and nurses to serve the maximum number of patients given a limited annual payroll. The clinic currently has 10 doctors and 30 nurses. The last doctor hired can serve 300 additional patients, while the last nurse hired can serve 200 additional patients. If doctors make $60,000 a year and nurses make…show more content…
Which of the following statements is correct? Selected Answer: d. Bev’s economic profit is $4,700. Correct Answer: d. Bev’s economic profit is $4,700. Question 7 2 out of 2 points Mallory decides to spend three hours working overtime rather than watching a video with her friends. She earns $8 an hour. Her opportunity cost of working is Selected Answer: a. the enjoyment she would have received had she watched the video. Correct Answer: a. the enjoyment she would have received had she watched the video. Question 8 2 out of 2 points mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Calibri","sans-serif";} If a firm is producing the level of output at which short−run average cost equals long−run average cost, then Selected Answer: d. both a and b Correct Answer: d. both a and b Question 9 2 out of 2 points A short-run production function assumes that Selected Answer: at least one input is a fixed input. Correct Answer: at least one input is a fixed input. Question 10 2 out of 2 points mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Calibri","sans-serif";} A firm is using 500 units of capital and 200 units of labor to produce 10,000 units of output. Capital costs $100 per unit and labor $20 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output. The firm Selected

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