Are You Smarter Than Mrs. Summers

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Are You Smarter Than Mrs. Summers?
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Directions!

• Welcome to Are You Smarter Than Mrs. Summers!
• Click the lowest white box before you click a
  question to determine the value of that question.
• Pick any question, take a second to think, then
  answer then click on the return button in the
  bottom left.
• After you answer all the questions on the board,
  click on the 1,000,000 dollar question to take a
  chance and win big.
• Then take a stab at the 4 extra credit questions
  for more money!
• Note the leftmost Fifth Grade question does not
  disappear when you click it.

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Are You Smarter Than Mrs. Summers?
1,000,000
500,000
300,000
5th Grade A
5th Grade B
175,000
100,000
4th Grade A
4th Grade B
50,000
3rd Grade A
3rd Grade B
25,000
10,000
2nd Grade A
2nd Grade
5,000
2,000
1st Grade A
1st Grade B
1,000
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5th Grade Topic A Question

• What is the relationship between Average Product
  and Marginal Product of labor?

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5th Grade Topic A Answer

• Average Product rises when Marginal Product is
  above it and falls when Marginal Product is below
  it because if the last additional input is above
  the average it will pull the average up and if it
  is less than the average it will pull down the
  average.

Return
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5th Grade Topic B Question

• What aspect of a firm in the short run is
  fixed?

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5th Grade Topic B Answer

• The plant size is the only aspect that is fixed
  in the short run.

Return
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4th Grade Topic A Question

• Why do firms produce where Marginal Revenue
  Marginal Cost?

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4th Grade Topic A Answer

• The Firm will produce at MRMC even though they
  turn zero dollars in profit because the Marginal
  Revenue includes the employers salary, the
  implicit costs.

Return
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4th Grade Topic B Question

• What are the three equations to solve for
• Average Total Cost (ATC)
• Average Variable Cost (AVC)
• Average Fixed Cost (AFC)

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4th Grade Topic B Answer

• ATC TC
• Q
• AVC TVC
• Q
• AFCTFC
• Q

Return
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3rd Grade Topic A Question

• Define Microeconomics

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3rd Grade Topic A Answer

• Branch of economics that looks at decision making
  at the firm, household, and individual levels and
  studies behavior in markets for particular goods
  and services.

Return
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3rd Grade Topic B Question

• Label each section, A, B, and C on this Long run
  graph of a firm.

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3rd Grade Topic B Answer

• A- Economies of Scale- producing more per worker
  than you pay per worker so cost decrease.
• B- Constant Returns to Scale (MES)- costs are
  equal to profit so no change in total costs
• C- Diseconomies of Scale- Producing less per
  worker than you pay them eventually increasing
  costs again

Return
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2nd Grade Topic A Question

• Where does Marginal Costs always intersect
  Average Variable Cost?

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2nd Grade Topic A Answer

• At the minimum average variable cost

Return
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2nd Grade Topic B Question

• Match the business to the graph of the firm in
  the long run most likely related to it.
• A) Wal-mart
• B) Starbucks
• C) Boeing

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2nd Grade Topic B Answer

• 1) B
• 2) A
• 3) C

Return
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1st Grade Question A

• What is Economics?

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1st Grade A Answer

• Social science that studies how to allocate
  scarce resources to fulfill unlimited wants.

Return
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1st Grade Question B

• As the amount of one input is increased holding
  the amounts of all other inputs constant, the
  incremental gains in output, marginal returns
  will eventually decrease.
• What law is this?

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1st Grade B Answer

• Law of Diminishing Marginal Returns

Return
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Million Dollar QuestionGrade Level- Applegate

• Profit Maximization of a Firm

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1,000,000 Question

• Why does MRPLMRCC1?
• PL PC
• And why do firms produce there?

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1,000,000 Answer

• It equals 1 because the numerator must equal the
  denominator the labor and capital must produce
  equal to the marginal revenue product and cost of
  that unit.
• They produce there because for every additional
  dollar of labor or capital made, it pays for the
  implicit costs, i.e. employers salary

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Extra Credit Question 1Worth 5,000

• What happens to a firm in the long run when the
  plant size increases?

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Extra Credit answer 1

• Long run ATC goes down, Labor/managerial
  specialization, better use of capital goods,
  improved design, and advertising.

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Extra Credit Question 2Worth 5,000

• Explain why the ATC begins to slope upward.

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Extra Credit Answer 2

• Firm becomes too large, distant management,
  workers are unhappy, and a failure to
  communicate/coordinate.

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Extra Credit Question 3Worth 5,000

• What causes Total Variable Costs to change?
• When dont Total Fixed Costs change?

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Extra Credit Answer 3

• A change in the level of output
• The long run

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Extra Credit Question 4Worth 5,000

• What is the equation to determine Marginal Cost?

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Extra Credit Answer 4

• MC ?TVC
• ? Q

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