question
Another word for elasticity is
-happiness
-profit
-responsiveness
-surplus
-bonus
-happiness
-profit
-responsiveness
-surplus
-bonus
answer
Responsiveness
question
The price elasticity if demand helps determine the effect of price changes on a firm's
-revenues
-quantity supplied
-profits
-property taxes
-total costs
-revenues
-quantity supplied
-profits
-property taxes
-total costs
answer
Revenues
question
"More elastic" means
-unchanging
-more desirable
-less responsive
-more responsive
-less desirable
-unchanging
-more desirable
-less responsive
-more responsive
-less desirable
answer
More responsive
question
If demand is inelastic, the percentage change in price is greater than the resulting percentage change in quantity demanded
-true
-false
-true
-false
answer
True
question
Marginal utility is defined as the
-total amount of satisfaction gained from consuming a product divided by the number of units consumed
-average amount of satisfaction gained from consuming a product
-additional satisfaction gained from consuming one more unit of a product
-total amount of satisfaction gained from consuming a product
-total amount of satisfaction gained from consuming a product times the number of units consumed
-total amount of satisfaction gained from consuming a product divided by the number of units consumed
-average amount of satisfaction gained from consuming a product
-additional satisfaction gained from consuming one more unit of a product
-total amount of satisfaction gained from consuming a product
-total amount of satisfaction gained from consuming a product times the number of units consumed
answer
additional satisfaction gained from consuming one more unit of a product
question
The law of diminishing marginal utility states that
answer
marginal utility falls as more of a good is consumed, other things constant
question
The marginal utility of a second copy of today's New York Times is
answer
Practically zero
question
Implicit cost involves a direct cash payment for the use of a resource
-true
-false
-true
-false
answer
False
question
Which of the following is not an explicit cost
-sales tax
-the value of a firm owners time
-insurance premiums
-salaries
-the cost of utilities, such as gas and electricity
-sales tax
-the value of a firm owners time
-insurance premiums
-salaries
-the cost of utilities, such as gas and electricity
answer
The value of a firm owners time
question
Economic profit is defined as
-total revenue plus implicit costs
-total revenue minus implicit and explicit cost
-total revenue minus implicit costs
-wages plus interest minus rent
-total revenue plus explicit costs
-total revenue plus implicit costs
-total revenue minus implicit and explicit cost
-total revenue minus implicit costs
-wages plus interest minus rent
-total revenue plus explicit costs
answer
Total revenue minus implicit and explicit costs
question
Zipco's accounting profit is equal to its
answer
Total revenue minus explicit costs
question
Suppose a soccer coach has been making $25,000 per year but gives up his coaching job in order to make lace doilies. If his revenue from the sale of these doilies is $50,000 and his materials cost $20,000, then his economic profit is
answer
$5,000
question
The graph of average fixed cost is a horizontal line
answer
False
question
In the long run all of a firm's inputs are variable
answer
True
question
In the short run all costs are fixed
answer
False
question
Inputs that can be increased or decreased in the short run are called
answer
variable inputs
question
Which of the following is most likely to be a fixed resource for Paul's Country Fresh Pies, Inc.
answer
Ovens
question
The short run is a period of time in which
answer
the quantity used of at least one resource is fixed
question
Which of the following is a long-run adjustment
answer
People's bank hires two new tellers to meet increased demand for customer services
question
marginal product is defined as
answer
the increase in output that occurs when an additional unit of a resource is added, holding all other resources constant
question
total product
answer
total output produced by the firm
question
marginal product
answer
Difference between the additional worker'total product and the amount before
question
If fixed cost at Q=100 is $130, then
answer
fixed cost at Q=200 is $130
question
Fixed costs are defined as
answer
costs that do not vary as quantity produced increases
question
Total cost is calculated as
answer
fixed cost plus variable cost
question
If a firm shuts down in the short run and produces no output, it's total cost will be
answer
Equal to total fixed cost
question
If marginal cost exceeds average variable cost
answer
average variable cost is increasing
question
Long run average costs are the same as long run total cost
answer
True
question
Empirical studies suggest that the long-run average cost curve
answer
Is U-shaped
question
Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville pharmacy, an individually owned drugstore
answer
Economies of scale
question
Which of the following firms is most likely to be a perfectly competitive firm
answer
A soybean farmer
question
Which of the following is not true of a perfectly competitive market
answer
Firms face significant barriers to entry.
question
Which of the following is likely to be present in a perfectly competitive market
answer
firms producing identical products
question
Firms in perfect competition have no control over
answer
what price to charge
question
Because it is small relative to the market, a perfectly competitive firm faces an inelastic demand curve for its output
answer
False
question
The price charged by a perfectly competitive firm is determined by
answer
market demand and market supply together.
question
Economic theory assumes that the goal of firms is to maximize
answer
Profit
question
Average revenue is
answer
total revenue divided by the quantity of the product sold
question
For a perfectly competitive firm, price is identical to marginal revenue at every quantity
answer
True
question
Marginal revenue is the change in total revenue from selling one more unit of output
answer
True
question
The golden rule of profit maximization states that any firm maximizes profit by producing where
answer
marginal revenue equals marginal cost
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
