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ECON_ 103_B_Fall_2026:Principles of Microeconomics

ECON_ 103_B_Fall_2026:Principles of Microeconomics

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Figure 9-1 shows the U.S. demand and supply for leather footwear.

Refer to Figure 9-1. Under autarky, the deadweight loss is

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If the opportunity costs of production for two goods is different between two countries, then

trade will only benefit both countries if one can lower its opportunity costs.

trade cannot benefit either country.

mutually beneficial trade is possible.

only one country can be made better off by trade.

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If the average variable cost curve is above the marginal cost curve, then

marginal costs must be increasing.

marginal costs must be decreasing.

marginal costs can be either increasing or decreasing.

average variable costs must be increasing.

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All of the following statements are true of the minimum efficient scale except one. Which one?

The short-run average total cost curve's minimum point is equal to the long-run average cost curve's minimum point.

Any increase in the scale of operation will encounter either constant returns to scale or diseconomies of scale.

All possible economies of scale have been exhausted.

An increase in the output level will increase profit.

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Refer to Figure 6-1. A perfectly inelastic demand curve is shown in

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Refer to Figure 11-5. Curve G approaches curve F because

average fixed cost falls as output rises.

fixed cost falls as capacity rises.

total cost falls as more and more is produced.

marginal cost is above average variable costs.

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Refer to Figure 10-6. The consumer can afford consumption bundles

r, s, t, and u.

s, v, and u only.

r, s, v, and u.

s, v, t, and u.

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Figure 11-7 shows the cost structure for a firm.

Refer to Figure 11-7. If output is 100 units what is the fixed cost of production?

This cannot be determined from the diagram.

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Refer to Figure 10-5. What is the marginal rate of substitution for one bar of chocolate between h and j?

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Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean?

If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.

The demand for orange juice is 6 times greater than the demand for grapefruit juice.

A 6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption.

A 1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption.

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