extra credit review quiz

what is marginal product

how much product (or output) change for an incremental change in an input

currently, the average cost is $50 for a pair of shoes when a firm is producing 99 units. the marginal cost of the 100th unit is $53. what should happen to the average cost of the shoes when the firm is producing 100 units

the average costs should increase

firms should stop producing immediately if their economic profits are negative

false

if q represents the quantity a firm is producing, what quantity should you produce given the following equations

price = $10

MC = 2q + 2

4 units

what is minimum efficient scale

MES refers to when LR average costs are constant as you increase production

which of the following isn’t a barrier to entry we explored in this class

international law

graphically, suppliers in perfect competition face a horizontal demand curve but suppliers in a monopoly face a downward sloping demand curve because the monopoly is the entire market

true

monopolies lead to less social welfare compared to perfect competition. this decrease in social welfare is referred to as

deadweight loss

you’re going into an interview for an outstanding medical school in 30 minutes. you think your grades and MCAT scores are in the middle of the pack but you want to indicate to your interviewer that you’re on of the best applicants

during your interview, you tell the interviewer about how you’ve been working 2 jobs while finishing undergraduate school and you mention all the cool research you’ve been doing in a research facility on campus. you’re providing more information about yourself to the interviewer to show them that you’re a much better applicant than their limited information would indicate. this communication of data is an example of

signaling

your covid-19 vaccine is an example of a credence good

true