ECON B 251 FINAL EXAM QUESTIONS WITH COMPLETE
SOLUTIONS GUARANTEED PASS
2025/2026
Sue quit her $40,000 per year job and opened a coffee shop that she
calls Top Brew. In the first year, Top Brew earned $200,000 in revenue.
For the same year, Top Brew paid $80,000 to employees in wages,
spent $40,000 on ingredients such as coffee beans, $15,000 rent for the
building to house Top Brew. Sue also used $50,000 of her personal
savings to purchase equipment for Top Brew, which she was earning
$4,000 in interest each year. Assuming no depreciation in the value of
the equipment, Sue's economic profit from Top Brew for the year is $ -
ANSWER - >21,000
which of the following are examples of implicit opportunity costs for
the firm? - ANSWER - >owners time, interest forgone, depreciation
having equal amount of information is known as symmetric information
- ANSWER - >symmetric
the principal-agent problem suggests - ANSWER - >principles and
agents are more likely to have the same goals if the agents pay is tied to
satisfying the principles goals
In a perfectly competitive market there are --- buyers --- sellers
producing identical products. ----have full information and --- have
market power - ANSWER - >many, many identical, buyers and sellers,
neither buyers nor sellers
,the short run us a period of time in which - ANSWER - >the quantity
used of at least one factor of production is fixed
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
The above table shows the total product of producing pizzas the
marginal product of the 4th worker is equal to --- pizzas - ANSWER - >5
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
, 10
18
23
27
The above table shows the total product of producing pizzas.
Diminishing returns begins when the pizzeria hires the fourth
worker - ANSWER - >fourth
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
Patti's Pizza production function is shown in the above table. Patti rents
three ovens for $30 a day each and hires workers at a wage rate of $20
a day. If Patti produces 18 pizzas per day, then her average total cost is
$ - ANSWER - >8.33
Labor ( workers per day)
0
1
SOLUTIONS GUARANTEED PASS
2025/2026
Sue quit her $40,000 per year job and opened a coffee shop that she
calls Top Brew. In the first year, Top Brew earned $200,000 in revenue.
For the same year, Top Brew paid $80,000 to employees in wages,
spent $40,000 on ingredients such as coffee beans, $15,000 rent for the
building to house Top Brew. Sue also used $50,000 of her personal
savings to purchase equipment for Top Brew, which she was earning
$4,000 in interest each year. Assuming no depreciation in the value of
the equipment, Sue's economic profit from Top Brew for the year is $ -
ANSWER - >21,000
which of the following are examples of implicit opportunity costs for
the firm? - ANSWER - >owners time, interest forgone, depreciation
having equal amount of information is known as symmetric information
- ANSWER - >symmetric
the principal-agent problem suggests - ANSWER - >principles and
agents are more likely to have the same goals if the agents pay is tied to
satisfying the principles goals
In a perfectly competitive market there are --- buyers --- sellers
producing identical products. ----have full information and --- have
market power - ANSWER - >many, many identical, buyers and sellers,
neither buyers nor sellers
,the short run us a period of time in which - ANSWER - >the quantity
used of at least one factor of production is fixed
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
The above table shows the total product of producing pizzas the
marginal product of the 4th worker is equal to --- pizzas - ANSWER - >5
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
, 10
18
23
27
The above table shows the total product of producing pizzas.
Diminishing returns begins when the pizzeria hires the fourth
worker - ANSWER - >fourth
Labor ( workers per day)
0
1
2
3
4
5
Total product (pizzas per day)
0
4
10
18
23
27
Patti's Pizza production function is shown in the above table. Patti rents
three ovens for $30 a day each and hires workers at a wage rate of $20
a day. If Patti produces 18 pizzas per day, then her average total cost is
$ - ANSWER - >8.33
Labor ( workers per day)
0
1
