ECON 303 BSU - Assignment Essays

Q: In the short run, when a firm stops producing:

It avoids paying variable costs

Q: The principle of diminishing marginal product states:

The marginal product of an input decreases as the quantity of the input increases

Q: An essential characteristic of a perfectly competitive market is:

|All of these are true| Free entry and exit Sellers are price takers Goods are standardized (homogenous)

Q: A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. What is the best action for the firm to take it in the short run?

Stay open if price is greater than average variable costs

Q: The marginal cost (MC) curve intersects the

ATC and AVC curves at their minimum points

Q: Refer to the figure above which illustrates the long - run average total cost curve. Which of the following statements is fals?

Diseconomies of scale exist between 0 and Q1 units of output.

Q: Suppose an industry initially had been perfectly competitive and then became a monopoly. Which of the following would occur.

Consumer surplus would decrease

ECON 303 BSU

0 min read

Posted on

March 14th, 2023

question

In general, economic profits are

answer

Less than accounting profits

question

Refer to the graph above. The supply curve for the perfectly competitive firm (in the short-run) is best represented by the segment:

answer

question

A perfectly competitive firm would never operate in the segment

answer

question

Refer to the graph above depicting a perfectly competitive firm. In order to maximize profit, the firm represented will produce.

answer

110 units of output

question

The long-run exit rule is to exit the industry if

answer

P < ATC

question

In the short run, when a firm stops producing:

answer

It avoids paying variable costs

question

A college student is thinking about running an ice cream truck over the summer. Which of the following would likely be a one - time expense of the business?

answer

The cost of the truck

question

The principle of diminishing marginal product states:

answer

The marginal product of an input decreases as the quantity of the input increases

question

An essential characteristic of a perfectly competitive market is:

answer

|All of these are true|
Free entry and exit
Sellers are price takers
Goods are standardized (homogenous)

question

A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. What is the best action for the firm to take it in the short run?

answer

Stay open if price is greater than average variable costs

question

The marginal cost (MC) curve intersects the

answer

ATC and AVC curves at their minimum points

question

The marginal cost curves slopes upwards due to

answer

Diminishing marginal returns

question

A price- taking firm faces a

answer

Perfectly elastic demand

question

Refer to the figure above: Which shoes the cost curves and marginal revenue curve of a firm in a perfectly competitive industry, the firs is

answer

Making an economic profit

question

Refer to the figure above which illustrates the long - run average total cost curve. Which of the following statements is fals?

answer

Diseconomies of scale exist between 0 and Q1 units of output.

question

Suppose a monopoly firm has a constant marginal cost equal to $20. Its demand and marginal revenue are given respectively by the equations P = 40 - 20Q and MR = 40 - 4Q. For this firm, the profit maximizing price and output levels are

answer

P = $20, Q =5

question

Suppose an industry initially had been perfectly competitive and then became a monopoly. Which of the following would occur.

answer

Consumer surplus would decrease

1 of 17

question

In general, economic profits are

answer

Less than accounting profits

question

Refer to the graph above. The supply curve for the perfectly competitive firm (in the short-run) is best represented by the segment:

answer

question

A perfectly competitive firm would never operate in the segment

answer

question

Refer to the graph above depicting a perfectly competitive firm. In order to maximize profit, the firm represented will produce.

answer

110 units of output

question

The long-run exit rule is to exit the industry if

answer

P < ATC

question

In the short run, when a firm stops producing:

answer

It avoids paying variable costs

question

A college student is thinking about running an ice cream truck over the summer. Which of the following would likely be a one - time expense of the business?

answer

The cost of the truck

question

The principle of diminishing marginal product states:

answer

The marginal product of an input decreases as the quantity of the input increases

question

An essential characteristic of a perfectly competitive market is:

answer

|All of these are true|
Free entry and exit
Sellers are price takers
Goods are standardized (homogenous)

question

A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. What is the best action for the firm to take it in the short run?

answer

Stay open if price is greater than average variable costs

question

The marginal cost (MC) curve intersects the

answer

ATC and AVC curves at their minimum points

question

The marginal cost curves slopes upwards due to

answer

Diminishing marginal returns

question

A price- taking firm faces a

answer

Perfectly elastic demand

question

Refer to the figure above: Which shoes the cost curves and marginal revenue curve of a firm in a perfectly competitive industry, the firs is

answer

Making an economic profit

question

Refer to the figure above which illustrates the long - run average total cost curve. Which of the following statements is fals?

answer

Diseconomies of scale exist between 0 and Q1 units of output.

question

answer

P = $20, Q =5

question

Suppose an industry initially had been perfectly competitive and then became a monopoly. Which of the following would occur.

answer

Consumer surplus would decrease

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order