Sophia: Microeconomics - Unit
1
C1: Microeconomics studies the behavior of__________. - -An economy in its
entirety
-C1: Which of the following is a characteristic of a rational consumer? - -
Rational consumers analyze costs and benefits when making decisions.
-C1: Economists assume that all rational consumers will allocate their
resources in order to _________. - -Maximize their utility.
-C1: Sarah is deciding between two different pairs of running shoes: The
Minimalist 7, which cost $99, and the Sprint XT, which are priced at $155.
Although both would meet her needs, Sarah knew that she would get more
wear and more support out of the higher-priced Sprint XT shoe.
If he wanted to buy the shoes today, Sarah had the ability to pay $99 for the
Minimalist 7s. However, if she wanted to buy the Sprint XTs, she would need
to pick up another shift at her job to earn extra money.
Which of the following statements describes marginal cost? - -Sarah must
work another night.
-C1: A firm decides to produce 100,000 baseballs.
Which of the following would be its opportunity cost? - -The 50,000 footballs
the firm could have produced otherwise.
-C1: Wage and salary contracts, leases and fixed factory sizing are all
examples of _________. - -Short-run production constraints.
-C1: A firm that produces running shoes is currently manufacturing a line of
waterproof shoes at a marginal cost of $50 per pair. During the winter
months, they were able to charge a price of $90 per pair. Now that it is
summer, the demand has fallen, and they are only able to charge $60 per
pair.
Assuming the shoes store is a profit-maximizing firm, which of the following
is true? - -The firm should continue to produce the shoes since the marginal
revenue is still greater than the marginal cost.
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