Microeconomics Ch. 7 - Assignment Essays

question

In economics, a firm that faces no competitors is referred to as ______________

answer

a monopoly

question

___________________ arises where many firms are competing in a market to sell similar but differentiated products.

answer

Monopolistic competition

question

A firm's ___________ consist of expenditures that must be made before production starts that typically, over the short run, _______________ regardless of the level of production.

answer

fixed costs; do not change,

question

__________ include all of the costs of production that increase with the quantity produced.

answer

Variable costs

question

____________________ occur when the marginal gain in output diminishes as each additional unit of input is added.

answer

Diminishing marginal returns

question

In order to determine ____________, the firm's total costs must be divided by the quantity of its output.

answer

average cost

question

In order to determine the average variable cost, the firm's variable costs are divided by _______

answer

he quantity of output

question

The term _____________ is used to describe the additional cost of producing one more unit.

answer

marginal cost

question

In order to reduce the harmful affects of recession and carbon emissions, the government provided tax
incentives for manufacturing firm's to ___________________ that provide alternative, more efficient methods of combining inputs to produce output.

answer

acquire energy efficient production technologies

question

The term __________________ describes a situation where the quantity of output rises, but the average cost of production falls.

answer

economies of scale

question

In microeconomics, the term _____________________ is synonymous with economies of scale.

answer

increasing returns to scale

question

The term "constant returns to scale" describes a situation where

answer

expanding all inputs does not change the average cost of production.

question

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

answer

diseconomies of scale

question

If a firm is experiencing _____________________, then as the quantity of output rises, the average cost of production rises.

answer

decreasing returns to scale

question

In the US economy, nearly half of all the workers employed by private firms work at

answer

18,000 large firms that employ more than 500 workers.

question

________ is calculated by taking the quantity of everything that is sold and multiplying it by the
sale price.

answer

Total revenue

question

______ include all spending on labor, machinery, tools, and supplies purchased from other firms.

answer

Total costs

question

Approximately what percentage of the US labor force is employed by firms that have fewer than 100 employees?

answer

35%

question

According to the definition of profit, if a profit-maximizing firm will always attempt to produce its
desired level of output at the lowest possible cost, then it will

answer

do so regardless of what type of competition exists in a market.

question

The ______________ of all firms can be broken down into some common underlying patterns.

answer

cost structure

question

If a solar panel manufacturer wants to look at its total costs of production in the short run, which of the following would provide a useful starting point?

answer

divide total costs into two categories: fixed costs that can't be changed in the short run and variable costs that can be

question

Which of the following falls outside of the classification of business expenses that fall into the category of fixed costs?

answer

costs incurred in the act of producing

question

Which of the following falls outside of the classification of business expenditures that fall into the
category of variable costs?

answer

costs of research and development

question

Why would labor be treated as a variable cost?

answer

producing larger quantities of a good or service generally requires more workers

question

I'MaPizzaCo. produces and sells specialty pizzas. Last year, it produced 8,000 mushroom, sausage an spinach pizzas and sold each one for $8. To produce these 8,000 specialty pizzas, the company incurred variable costs of $24,000 and a total cost of $40,000. I'MaPizzaCo's average fixed cost to produce 8,000 specialty pizzas was

answer

$2.00

question

I'MaGadgetCo. produces and sells widgets. Last year, it produced 9,000 widgets and sold each one for
$8. To produce the 9,000 widgets, the company incurred variable costs of $27,000 and a total cost of
$36,000. I'MaGadgetCo's average fixed cost to produce 9,000 widgets was

answer

$1.00

question

The marginal cost curve is generally ______________, because diminishing marginal returns implies that additional units are _____________

answer

upward-sloping; more costly to produce

question

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

answer

total revenue

question

Fixed costs are important because, at least in the ___________, the firm _________

answer

short run; cannot alter them

question

The _____________________ curve will always lie below the curve for average cost because average cost includes _____________ in the numerator of the calculation.

answer

average variable cost; fixed costs

question

In order to calculate marginal cost, the change in ______________ is divided by the amount of change in quantity.

answer

either total cost or variable cost

question

Which of the following should typically be ignored because spending has already been made and cannot be changed?

answer

sunk costs

question

_________ tells a firm whether it can earn profits given the price in the market.

answer

Average cost

question

If a comparison between average cost and price reveals whether a firm is earning profits, then a
comparison between average variable cost and price reveals

answer

whether the firm is earning profit if fixed costs are left out of the calculation.

question

When __________________ exist, doubling of all inputs will result in more than doubling output, which means _____________________

answer

economies of scale; a larger factory can produce at a lower average cost than a smaller company.

question

The economies-of-scale curve is a long-run average cost curve, because

answer

it allows all factors of production to change.

question

A situation known as _____________________ occurs when all production inputs are allowed to expand, but that expansion does not result in much of a change in the average cost of production.

answer

constant returns to scale

question

________________ help to explain why every economy, as it develops, has an increasing proportion of its population living in urban areas.

answer

Agglomeration factors

question

Economies of scale may arise from all but one of the following. Which one is it?

answer

government economic subsidies protect firms from competition to avoid losses

question

The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ___________

answer

economies of agglomeration; corresponding diseconomies

1 of 40

question

In economics, a firm that faces no competitors is referred to as ______________

answer

a monopoly

question

___________________ arises where many firms are competing in a market to sell similar but differentiated products.

answer

Monopolistic competition

question

A firm's ___________ consist of expenditures that must be made before production starts that typically, over the short run, _______________ regardless of the level of production.

answer

fixed costs; do not change,

question

__________ include all of the costs of production that increase with the quantity produced.

answer

Variable costs

question

____________________ occur when the marginal gain in output diminishes as each additional unit of input is added.

answer

Diminishing marginal returns

question

In order to determine ____________, the firm's total costs must be divided by the quantity of its output.

answer

average cost

question

In order to determine the average variable cost, the firm's variable costs are divided by _______

answer

he quantity of output

question

The term _____________ is used to describe the additional cost of producing one more unit.

answer

marginal cost

question

answer

acquire energy efficient production technologies

question

The term __________________ describes a situation where the quantity of output rises, but the average cost of production falls.

answer

economies of scale

question

In microeconomics, the term _____________________ is synonymous with economies of scale.

answer

increasing returns to scale

question

The term "constant returns to scale" describes a situation where

answer

expanding all inputs does not change the average cost of production.

question

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

answer

diseconomies of scale

question

If a firm is experiencing _____________________, then as the quantity of output rises, the average cost of production rises.

answer

decreasing returns to scale

question

In the US economy, nearly half of all the workers employed by private firms work at

answer

18,000 large firms that employ more than 500 workers.

question

________ is calculated by taking the quantity of everything that is sold and multiplying it by the
sale price.

answer

Total revenue

question

______ include all spending on labor, machinery, tools, and supplies purchased from other firms.

answer

Total costs

question

Approximately what percentage of the US labor force is employed by firms that have fewer than 100 employees?

answer

35%

question

According to the definition of profit, if a profit-maximizing firm will always attempt to produce its
desired level of output at the lowest possible cost, then it will

answer

do so regardless of what type of competition exists in a market.

question

The ______________ of all firms can be broken down into some common underlying patterns.

answer

cost structure

question

If a solar panel manufacturer wants to look at its total costs of production in the short run, which of the following would provide a useful starting point?

answer

divide total costs into two categories: fixed costs that can't be changed in the short run and variable costs that can be

question

Which of the following falls outside of the classification of business expenses that fall into the category of fixed costs?

answer

costs incurred in the act of producing

question

Which of the following falls outside of the classification of business expenditures that fall into the
category of variable costs?

answer

costs of research and development

question

Why would labor be treated as a variable cost?

answer

producing larger quantities of a good or service generally requires more workers

question

answer

$2.00

question

answer

$1.00

question

The marginal cost curve is generally ______________, because diminishing marginal returns implies that additional units are _____________

answer

upward-sloping; more costly to produce

question

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

answer

total revenue

question

Fixed costs are important because, at least in the ___________, the firm _________

answer

short run; cannot alter them

question

The _____________________ curve will always lie below the curve for average cost because average cost includes _____________ in the numerator of the calculation.

answer

average variable cost; fixed costs

question

In order to calculate marginal cost, the change in ______________ is divided by the amount of change in quantity.

answer

either total cost or variable cost

question

Which of the following should typically be ignored because spending has already been made and cannot be changed?

answer

sunk costs

question

_________ tells a firm whether it can earn profits given the price in the market.

answer

Average cost

question

If a comparison between average cost and price reveals whether a firm is earning profits, then a
comparison between average variable cost and price reveals

answer

whether the firm is earning profit if fixed costs are left out of the calculation.

question

When __________________ exist, doubling of all inputs will result in more than doubling output, which means _____________________

answer

economies of scale; a larger factory can produce at a lower average cost than a smaller company.

question

The economies-of-scale curve is a long-run average cost curve, because

answer

it allows all factors of production to change.

question

A situation known as _____________________ occurs when all production inputs are allowed to expand, but that expansion does not result in much of a change in the average cost of production.

answer

constant returns to scale

question

________________ help to explain why every economy, as it develops, has an increasing proportion of its population living in urban areas.

answer

Agglomeration factors

question

Economies of scale may arise from all but one of the following. Which one is it?

answer

government economic subsidies protect firms from competition to avoid losses

question

The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ___________

answer

economies of agglomeration; corresponding diseconomies

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order