1. Barbara owns a small shop where dresses are made. At the end of a given month, she has 250 dresses. Her expenses for the month are $1,000 for rent, $6,000 for wages, $1,500 for fabric and thread, and $500 for electricity. Her total variable costs for the month are:A. c and e.B.$4,000.C.$32 per dress.D.$7,500.E. $8,000.2. An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she had total revenue of $200,000 and business expenses of $100,000. She made a(n):A. economic profit.B. economic loss.C. implicit profit.D. accounting loss but not an economic loss.E. zero economic profit.3.Economies of scale can be caused by all of the following except:A. price discounts for large scale purchases.B. labor specialization.C. use of more productive equipment.D. increases in the firm’s average total cost.E. more cost-efficient methods of marketing.4.In Exhibit 7-17, economies of scale exist up to:A. Q1 units of output per week.B. Q2 units of output per week.C. Q3 units of output.D. Q4 units of output.5.Given the short-run average total cost curves in Exhibit 7-15, what level of output per week minimizes average total cost?A. 500 units.B. 1,000 units.C. 1,500 units.D. 2,000 units.
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