question
industrial organization is the study of how
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firms' decisions regarding prices and quantities depend on the market conditions they face
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the amount of money that a firm receives from the sale of its output is called
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total revenue
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economists normally assume that the goal of a firm is to
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i) make profit as large as possible even if it means reducing output
ii) make profit as large as possible even if it means incurring a higher total cost
ii) make profit as large as possible even if it means incurring a higher total cost
question
which of the following is an implicit cost
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i) the owner of a firm foregoing an opportunity to earn a large salary working for a Wall Street brokerage firm
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If Joe purchases the factory with his own money, what is the annual implicit opportunity cost of purchasing the factory
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$12,000
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suppose joe purchases the factory using $200,000 of his own money and $200,000 borrowed from a bank at an interest rate of 6 percent. what is joe's annual opportunity cost of purchasing the factory
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$18,000
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zach's economic profit for the year was
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-$6,000
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the marginal product of labor is equal to the
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increase in output obtained from a one unit increase in labor
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as the number of workers increases
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total output increases, but at a decreasing rate
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with regard to cookie production, the figure implies
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diminishing marginal product of workers
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which of the following is true of the production function (not pictured) that underlies this total cost function
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all of the above are correct
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the changing slope of the total cost curves reflects
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decreasing marginal product
question
on a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. he is also able to produce 4,4000 bushels of wheat when he hires 3 workers. which of the following possibilities is consistent with the property of diminishing marginal product
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the farmer is able to produce 5,600 bushels of wheat when he hires 4 workers
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the short-run supply curve for a firm in a perfectly competitive market is
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the portion of its marginal cost curve that lies above its average variable cost
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when total revenue is less than variable costs, a firm in a competitive market will
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shut down
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which line segment best reflects the short-run supply curve for this firm
answer
ABCE
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