16. Economies of scale occur when the percentage increase in output
(A)exceeds the percentage increase in all inputs.
(B)is less than the percentage decrease in all inputs.
(C) is less than the percentage increase in all inputs.
(D) exceeds the percentage decrease in all inputs. (Table for questions 17-19 is provided in the image)

12. In the above figure, if Bob's income-time budget line is BL1, what will be his daily income if he chooses 16 hours of leisure?(A)$40.00 (B)$80.00 (C) $60.00 (D) $120.00

13. In the above figure, if the wage rate is $5.00 per hour, how many hours will Bob work each day? (A)18 hours (B)6 hours (C) 8 hours (D) 16 hours

14.In the above figure, if the wage rate is $5.00 per hour and Bob is currently working 8 hours every day, then to get to his best attainable combination of leisure and income, Bob should (A)do no more work each day. (B)take no more leisure each day. (C) both of the above (D) neither of the above (Figure for question 15 is provided in the image)

15. The average total cost curves for Plant 1, ATC1, and Plant 2, ATC2, are shown in the figure above. Over what output range is it efficient to operate Plant 2?(A)0-25 (B)20-25 (C) greater than 25 (D) 0-20

17.Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12.50 and if Archibald's does not shut down, what is the firm's profit-maximizing output?(A)2 tattoos per hour (B)4 tattoos per hour (C) 3 tattoos per hour (D) 5 tattoos per hour

18. Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. What is Archibald's economic profit at the shut-down point? (A)zero (B)$10 (C) -$15 (D) -$10

19. Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12 the firm(A)will shut down. (B)is breaking even. (C) suffers an economic loss, but will not shut down. (D) will not shut down in the short run, but will leave the industry in the long run. (Figure for questions 20-22 is provided in the image)

20.In the above figure, what price will the single-price monopoly set? (A)P2 (B)P1 (C) P4 (D) P5

21. Using the above figure, which of the following statements is true? (A)At point e, the marginal cost of the last unit produced is equal to the price, therefore to maximize its profit the firm should produce no more nor less. (B)At point f, the marginal revenue of the last unit produced is equal to the marginal cost, therefore to maximize its profit the firm should produce no more nor less. (C) At point f, the marginal revenue of the last unit produced is greater than the marginal cost, therefore to maximize its profit the firm should produce more. (D) At point d, the marginal revenue of the last unit produced is less than the marginal cost, therefore the firm should produce more.

22. In the above figure, the total revenue for a single-price monopolist is shown by the area (A)OP3CQ1. (B)P2P4eb. (C) OP5fQ1. (D) OP4eQ3.