question
are property taxes a fixed cost or variable cost?
answer
fixed
question
is the price of electricity a fixed or variable cost?
answer
variable
question
are insurance rates on plant and equipment fixed or variable costs?
answer
fixed
question
Is Pepco bill (electricity) an explicit or implicit cost?
answer
explicit
question
are wages lost from another job explicit or implicit costs?
answer
implicit
question
is lost sleep from worrying about your business an explicit or implicit cost?
answer
implicit
question
Labor total product total cost
0 0 150
1 20 175
2 46 200
3 70 225
4 92 250
5 110 275
What is the average product of 2 workers?
0 0 150
1 20 175
2 46 200
3 70 225
4 92 250
5 110 275
What is the average product of 2 workers?
answer
23
question
Labor total product total cost
0 0 150
1 20 175
2 46 200
3 70 225
4 92 250
5 110 275
What is the marginal product of the 4th worker? show work
0 0 150
1 20 175
2 46 200
3 70 225
4 92 250
5 110 275
What is the marginal product of the 4th worker? show work
answer
92 - 70/ 4 - 3
22/1 =
22 is the marginal product of the 4th worker
22/1 =
22 is the marginal product of the 4th worker
question
Labor total product total cost
0 0 150
1 20 175
2 46 200
3 70 225
4 92 250
5 110 275
What are the fixed costs?
0 0 150
1 20 175
2 46 200
3 70 225
4 92 250
5 110 275
What are the fixed costs?
answer
$150
question
are lump-sum taxes a fixed or variable cost?
answer
fixed
question
is the price of paper used in the school copier a fixed or variable cost?
answer
variable
question
quantity total cost
0 100
2 530
4 770
6 950
8 1280
10 1830
what is the total variable cost of 2 workers?
0 100
2 530
4 770
6 950
8 1280
10 1830
what is the total variable cost of 2 workers?
answer
530 - 100 = 430
question
quantity total cost
0 100
2 530
4 770
6 950
8 1280
10 1830
what is the marginal cost of the 4th worker?
0 100
2 530
4 770
6 950
8 1280
10 1830
what is the marginal cost of the 4th worker?
answer
240 / 4 - 2
240/2 =
$120
240/2 =
$120
question
When the marginal cost is less than the average variable cost .......
answer
AVC (average variable cost) decreases
question
when average product is greater than the marginal product .......
answer
AP (average product) decreases
question
when average total cost is increasing .......
answer
MC (marginal cost) > ATC (average total cost)
question
at the quantity where , marginal product is at a maximum .......
answer
MC (marginal cost) is at a minimum
question
when MP (marginal product) is greater than AP (average product) ......
answer
AP (average product) increases
question
does a per unit tax change marginal cost?
answer
yes
question
at the quantity where marginal product is at a maximum ......
answer
MC (marginal cost) is at a minimum
question
a firm that is a price taker has a marginal revenue ___________ the price it is charging.
answer
equal to
question
the optimal allocation of resource occurs when ..........
answer
MC = MB
question
a firm that is a price maker has a marginal revenue _______________ the price it is charging.
answer
less than
question
when marginal cost is greater than average variable cost ..........
answer
AVC is increasing
question
when average total cost i decreasing ........
answer
ATC > MC
question
does a lump sum tax change marginal cost?
answer
NO
question
the difference between the ATC and the AVC is ............
answer
AFC
question
a per unit tax will (increase/decrease/not change) marginal cost.
answer
increase
question
a firm that is a price taker has a marginal revenue ______________ the price it is charging.
answer
equal to
question
a firm will maximize their profit when ............
answer
MR = MC
question
a firm that is a price maker has a marginal revenue less than the price it is charging because ..........
answer
to increase quantity sold, price must decrease on all units sold
question
the elasticity of demand for a firm in a perfectly competitive market is .............
answer
perfectly elastic
question
a firm that is a perfect price discriminator has a marginal revenue that is _____________ the price it is charging at each unit.
answer
greater than
question
when price is less than ATC, but greater than AVC the firm is earning ...........
answer
negative economic profit
question
the marginal revenue is equal to 0; therefore, the demand is ............
answer
unit elastic
question
a firm is producing a quantity where marginal revenue is greater than marginal cost. the firm should (increase/decrease/not change) their production level
answer
increase
question
how does a firm determine the price they will charge?
answer
from the demand curve directly above the profit maximizing quantity
question
the demand curve is elastic when
answer
MR > 0
question
the demand curve is unit elastic when
answer
MR = 0
question
the demand curve is inelastic when
answer
MR < 0
question
a firm is productively efficient when ......
answer
P = min ATC
question
is a perfectly competitive firm allocatively efficient?
answer
yes because the perfectly competitive market produces a quantity where P = MC
question
a firm is producing at a quantity where marginal revenue is equal to the marginal cost. the firm should (increase/ not change/ decrease) their production level.
answer
not change
question
in the short run competitive firms are experiencing a positive economic profit. firms will ____________ the market until all firms ___________________________.
answer
enter; are experiencing 0 econ profit/normal profit
question
a perfect price discriminator has ___________ consumer surplus.
answer
0
question
perfect competitors are ___________ productively efficient in ____________ because ___________________.
answer
only; in the long run; P = min ATC
question
the monopolist provides a ____________ quantity compared to the perfectly competitive market.
answer
smaller
question
why is a monopoly a market failure?
answer
they do not produce the allocatively efficient output
question
A firm is allocatively efficient when
answer
P = MC
question
how do you calculate the total revenue for a perfect price discriminator?
answer
1/2 (P1 + P2) Q
question
does a monopoly that is a perfect price discriminator have an efficiency loss?
answer
no because they are producing at an allocatively efficient output.
question
what is excess capacity?
answer
in monopolistic competition, it is the gap between the min ATC output and the profit maximizing quantity
question
is firms in a monopolistically competitive market are earning positive economic profit, then in the long run ____________________
answer
firms will enter the market
question
what does P < ATC indicate?
answer
negative economic profit
question
P = MC
answer
allocatively efficient
question
MR < 0
answer
demand inelastic
question
MR > MC
answer
produce more
question
P < ATC
answer
negative economic profit
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