Chapter 13: Firm Behavior and the Organization of Industry

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Posted on

March 14th, 2023

question

Accounting Profit is equal to total revenue minus

answer

Explicit Costs

question

Economic profit is equal to total revenue minus

answer

the sum of implicit costs and explicit costs

question

If there are implicit costs of production, accounting profit will exceed

answer

economic profit

question

If a production function exhibits diminishing marginal product, its slope

answer

becomes flatter as the quantity of the input increases

question

If a production function exhibits diminishing marginal product, the slope of the corresponding total-cost curve

answer

becomes steeper as the quantity of output increases

question

Which of the following is a variable cost in the short run?

Wages paid to factory labor

Payment on the lease for factory equipment

Rent on the factory

Interest payments on borrowed financial capital

Salaries paid to upper management

answer

Wages paid to factory labor

question

When marginal costs are below average total costs,

answer

average total costs are minimized

question

If, as the quantity produced increases , a production function first exhibits increasing marginal product and later diminishing product, the corresponding marginal-cost curve will be

answer

U shaped

question

In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience

answer

Economies of scale

question

The efficient scale of production is the quantity of output that minimizes

answer

Average total cost

question

Which of the following statements is true?

All costs are fixed in the long run

All costs are variable in the long run

All costs are fixed in the short run

All costs are variable in the short run

answer

All costs are variable in the long run

1 of 11

question

Accounting Profit is equal to total revenue minus

answer

Explicit Costs

question

Economic profit is equal to total revenue minus

answer

the sum of implicit costs and explicit costs

question

If there are implicit costs of production, accounting profit will exceed

answer

economic profit

question

If a production function exhibits diminishing marginal product, its slope

answer

becomes flatter as the quantity of the input increases

question

If a production function exhibits diminishing marginal product, the slope of the corresponding total-cost curve

answer

becomes steeper as the quantity of output increases

question

answer

Wages paid to factory labor

question

When marginal costs are below average total costs,

answer

average total costs are minimized

question

If, as the quantity produced increases , a production function first exhibits increasing marginal product and later diminishing product, the corresponding marginal-cost curve will be

answer

U shaped

question

In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience

answer

Economies of scale

question

The efficient scale of production is the quantity of output that minimizes

answer

Average total cost

question

Which of the following statements is true?

All costs are fixed in the long run

All costs are variable in the long run

All costs are fixed in the short run

All costs are variable in the short run

answer

All costs are variable in the long run

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