microeconomics - Assignment Essays

question

Which of the following is most likely to be a variable cost?

answer

fuel and utility costs

question

which of the following constitutes an implicit cost to the Johnston Manufacturing Company?

answer

foregone interest from using personal funds in purchasing new machine

question

To the economist total cost includes:

answer

explicit and implicit costs, including a normal profitfixe

question

fixed cost is:

answer

any cost which does not change when the firm changes the output

question

Suppose that a business incurred implicit costs of $500,000 and explicit costs of million in a specific year. If the firm sold 100,000 units of its output at $50 per unit its accounting:

answer

profits were zero and its economic losses were $500,000

question

Assume the XYZ Corporation is producing 20 units of output. It is selling this output at $10 per unit. Its total fixed costs are $100 and its total variable cost is $60. Think... corporation:

answer

is realizing a profit of $40

question

Refer to the above data. The marginal cost of producing the sixth unit of output is ...b $12

answer

question

An industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product is an example of

answer

monopolistic competition

question

Consumer recognition of Pizza Hut is very high. With that said, Pizza Hut mainly differentiates itself from its competition by using which of the following strategies?

answer

branding

question

Which of the following is an illustration of differentiated oligopoly?

answer

the soft drink industry

question

pure monopoly means:

answer

a single firm producing a product for which there are no close substitutes

question

What do economies of scale, the ownership of essential raw materials, and patents have in common?

answer

they are all barriers to entry

question

the following industry would be an example of which market model

answer

oligopoly

question

which of the following is correct?

answer

a purely competitive firm is a "price taker," while a monopolistic is a "price maker."

question

If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:

answer

economies of scale are being realized

question

Which of the following is not a source of economies of scale?

answer

inelastic resource supply curves

question

Refer to the above data. If product price is $60, the firm will:

answer

produce 6 units and realize a $100 profit

question

Refer to the above data. Based on the marginal revenue-marginal cost approach, if marginal revenue is $24, the firm should produce:

answer

4 units

question

In the short run, the level of profit maximizing output is at the point where Marginal Revenue equals:

answer

marginal cost

question

At the level of output where Marginal Revenue is equal to Marginal Cost, If Average Variable Cost exceeds Marginal Revenue then:

answer

the firm should shut down

question

consumer surplus:

answer

is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price

question

The law of diminishing marginal utility states that:

answer

beyond some point additional units of a product will yield less and less extra satisfaction to a consumer

question

Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed.Refer to the above data. Diminishing marginal returns become evident with the addition of the:

answer

third worker

question

Which of the following best expresses the law of diminishing returns?

answer

as successive amounts of one resource (labor) are added fixed amounts of other resources (property), beyond some point the resulting extra output (production) will decline

question

Jennifer buys a book for $28 for which she was willing to pay $35. The minimum acceptable price to the seller, Nathan, was $20. Jennifer experiences:

answer

a consumer surplus of $7 and Nathan experiences a producer surplus of $8

1 of 25

question

Which of the following is most likely to be a variable cost?

answer

fuel and utility costs

question

which of the following constitutes an implicit cost to the Johnston Manufacturing Company?

answer

foregone interest from using personal funds in purchasing new machine

question

To the economist total cost includes:

answer

explicit and implicit costs, including a normal profitfixe

question

fixed cost is:

answer

any cost which does not change when the firm changes the output

question

Suppose that a business incurred implicit costs of $500,000 and explicit costs of million in a specific year. If the firm sold 100,000 units of its output at $50 per unit its accounting:

answer

profits were zero and its economic losses were $500,000

question

Assume the XYZ Corporation is producing 20 units of output. It is selling this output at $10 per unit. Its total fixed costs are $100 and its total variable cost is $60. Think... corporation:

answer

is realizing a profit of $40

question

Refer to the above data. The marginal cost of producing the sixth unit of output is ...b $12

answer

question

An industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product is an example of

answer

monopolistic competition

question

Consumer recognition of Pizza Hut is very high. With that said, Pizza Hut mainly differentiates itself from its competition by using which of the following strategies?

answer

branding

question

Which of the following is an illustration of differentiated oligopoly?

answer

the soft drink industry

question

pure monopoly means:

answer

a single firm producing a product for which there are no close substitutes

question

What do economies of scale, the ownership of essential raw materials, and patents have in common?

answer

they are all barriers to entry

question

the following industry would be an example of which market model

answer

oligopoly

question

which of the following is correct?

answer

a purely competitive firm is a "price taker," while a monopolistic is a "price maker."

question

If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:

answer

economies of scale are being realized

question

Which of the following is not a source of economies of scale?

answer

inelastic resource supply curves

question

Refer to the above data. If product price is $60, the firm will:

answer

produce 6 units and realize a $100 profit

question

Refer to the above data. Based on the marginal revenue-marginal cost approach, if marginal revenue is $24, the firm should produce:

answer

4 units

question

In the short run, the level of profit maximizing output is at the point where Marginal Revenue equals:

answer

marginal cost

question

At the level of output where Marginal Revenue is equal to Marginal Cost, If Average Variable Cost exceeds Marginal Revenue then:

answer

the firm should shut down

question

consumer surplus:

answer

is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price

question

The law of diminishing marginal utility states that:

answer

beyond some point additional units of a product will yield less and less extra satisfaction to a consumer

question

answer

third worker

question

Which of the following best expresses the law of diminishing returns?

answer

as successive amounts of one resource (labor) are added fixed amounts of other resources (property), beyond some point the resulting extra output (production) will decline

question

Jennifer buys a book for $28 for which she was willing to pay $35. The minimum acceptable price to the seller, Nathan, was $20. Jennifer experiences:

answer

a consumer surplus of $7 and Nathan experiences a producer surplus of $8

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