5.Use the data in the table above and suppose that labor is the only variable factor of production. If each worker is paid $42.00 per day, what is the average variable cost to Decent Donuts of producing 122 dozen donuts per day ?
(A) $2.16
(B) $3.06
(C) $2.41
(D) $1.91

6.In the above figure, Reggie's budget line rotates outward from $BL_1$ to $BL_2$. He initially consumes at point $A$. If his new consumption bundle is at point $C$, this implies that his demand curve for kiwi fruit ______. (A) slopes downward. (B) is a horizontal line. (C) is a vertical line. (D) has shifted.

7.The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have the same cost curves and the price equals $16 per unit ______. (A) the market is in its longrun equilibrium. (B) over time, the price will fall as new firms enter the market. (C) the firm is making zero economic profit. (D) over time, firms will leave this market.

8.Which area in the above figure equals the producer surplus under perfect price discrimination? (A) $C + D + E + F + G + H$ (B) $A + B + C + D + E + F + G + H + I + J + K$ (C) $A + B + C + D + E + F + G + H$ (D) $A + B + C + D + E + F + G + H + I + J + K + L$

9. When firms in monopolistic competition incur an economic loss, some firms will ______ (A) enter the industry, and demand will become more elastic for the original firms. (B) enter the industry and produce more products. (C) exit the industry, and demand will decrease for the firms that remain. (D) exit the industry, and demand will increase for the firms that remain.

10.Two students are assigned a group project. Each has the option to work or not work to achieve a high grade. The payoffs are shown in the above table. Student 1 should ______ (A) not work regardless of what student 2 decides. (B) not work if student 2 works. (C) work regardless of the decision made by student 2. (D) work only if student 2 works.

11.The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city. If the marginal external cost is $10 per ton at every quantity of steel produced, the equilibrium quantity when the steel industry is unregulated is _______ tons per week. (A) 20 (B) 25 (C) 5 (D) 15

12.If the good in the table above is a public good and Pat and Al are the only members of society, then the efficient quantity to produce is _______ (A) 4 units. (B) 3 units. (C) 5 units. (D) 2 units.

13.Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker. Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U). Lucy's expected utility from real estate brokerage is (A) 103. (B) 110. (C) 117. (D) 93.

14.The above table shows some national income accounting data for a nation. In this nation, gross domestic product is equal to billion. (A) $2,500 (B) $2,000 (C) $2,300 (D) $2,800

15.Using the data in the above table, the unemployment rate is (A) 4.16 percent. (B) 28.0 percent. (C) 5.55 percent. (D) 4.0 percent.

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