question
complete control
answer
An advantage of the sole proprietorship is that the the owner is face with...
question
limited liability
answer
Large capital accumulation is facilitated in a corporate form of business because of...
question
sole proprietorships
answer
The majority of all US firms are...
question
profits
answer
The standard assumption in economic analysis is that firms attempt to maximize...
question
fixed costs are greater than zero
answer
Assume that a sugar processing plant totally shuts down for three months each year. During that period, it's...
question
diminishing return
answer
In the short run a firm will eventually experience rising marginal costs because of...
question
4 (mpp = change in output/change in input)
answer
What is the marginal physical of the fourth unit of labor in the table above?
question
with the addition of the third worker
answer
In the example above, when do diminishing returns begin?
question
marginal cost
answer
The addition to total cost from producing one more unit of output is called...
question
Rent and property insurance for the building where the business operates
answer
Sal's break repair is a small business that employs 14 people. Which of the following is most likely to be a fixed cost for Sal's brake repair?
question
all of the firm's inputs are variable
answer
In the long run...
question
Average fixed cost curve
answer
Which of the following short run cost curves is always continually declining?
question
below the average total cost curve
answer
When average total costs are falling, then the marginal cost curve will be...
question
35 ( = total fixed cost/quantity of output)
answer
When 4 units are being produced, what is the value of average fixed costs?
question
50
answer
When output is 2 units, total variable cost is equal to...
question
40 (= change in total cost/ change in quantity of output)
answer
The marginal cost of the third unit of output is...
question
35
answer
Average variable cost of producing 4 units of output is...
question
average fixed cost
answer
Which of the following short run curves continually declines as output is increased?
question
288
answer
In the diagram above, what is the marginal cost of the 120th unit of output?
question
296
answer
In the diagram above, the average total cost when producing 100 units is...
question
20,000 (200x100)
answer
In the diagram, what is the total variable cost when output is 100 units?
question
There will be one or only a few, large firms in the industry
answer
When economies of scale continue to a large scale or production...
question
All of the statements above are false
answer
According to business through the eyes of faith which of the following statements is true?
question
The ultimate goal for a business is survival
answer
According to business through the eyes of faith which of the following statements is false?
question
The expectation of earning a profit
answer
Economic analysis of business firms assume that business owners are motivated with...
question
A) Providing goods and services that enhance the lives of individuals and society.
B) Creating and maintaining jobs.
C) Providing a fair return to committed owners and investors.
D) Supporting community projects.
B) Creating and maintaining jobs.
C) Providing a fair return to committed owners and investors.
D) Supporting community projects.
answer
According to Business Through The Eyes of Faith, businesses can "extend God's shalom in business" by...
question
In the short run, at least one input is fixed.
answer
Which of the following statements is TRUE?
question
Limited liability
answer
When choosing a form of business organization, Which of the following is an advantage to owners of...
question
all variable
answer
Economists define the long run as a period of time in which costs are...
question
its owners, its customers, its employees, and the community in which it is located.
answer
According to Business Through The Eyes of Faith, a business is responsible to...
question
Marginal physical product
answer
the change in total output associated with a one unit increase in a variable input.
question
Marginal cost
answer
The change in total costs from producing one more unit of output
question
...
answer
In a diagram of average and marginal costs, the average total cost curve lies...
question
above average total cost
answer
When the average total cost curve is rising, then the marginal cost curve must be...
question
average fixed costs fall and then later average variable costs rise with larger levels of output.
answer
In the short run, the average total cost curve is U-shaped because...
question
the additional wages, and utility costs incurred during extra hour of operations
answer
A cafe owner wants to calculate the marginal cost of staying open an hour later on Friday nights. She must include in her calculation...
question
diminishing returns
answer
Rising marginal cost in the short run is due to...
question
economies and diseconomies of scale
answer
The shape of the long run average cost curve is primarily due to...
question
economies of scale, diseconomies of scale, learning by doing, and technological change
answer
Which of the following can affect costs in the long run?
question
packaging and delivery costs
answer
What is an example of a variable cost?
question
Firms in the industry may be either large or small
answer
If an industry experiences constant returns to scale, which of the following statement is TRUE?
question
In the long run, the firm can chose the optimal size plant for the anticipated level of output.
answer
Which of the following statements concerning the long run is TRUE?
question
the long run
answer
A period of time with sufficient length to allow a firm to alter its plant size and capacity and all other factors of production.
question
Economies of scale
answer
A) Economies of scale occurs when per unit costs decrease as the scale of operations increases in the long run.
B) One cause of economies of scale is the efficiency gains from specialization.
D) Economies of scale is a long run concept.
E) Economies of scale is one factor that determines the number of firms in an industry.
B) One cause of economies of scale is the efficiency gains from specialization.
D) Economies of scale is a long run concept.
E) Economies of scale is one factor that determines the number of firms in an industry.
question
diseconomies of scale
answer
A) Diseconomies of scale may occur due to increased monitoring costs in large scale operations.
B) Diseconomies of scale may occur due to the loss of team spirit in large organizations.
C) Diseconomies of scale means that per unit costs rise as the scale of output increases in the long run.
D) Diseconomies of scale accounts for the rising portion of the long run average cost curve.
B) Diseconomies of scale may occur due to the loss of team spirit in large organizations.
C) Diseconomies of scale means that per unit costs rise as the scale of output increases in the long run.
D) Diseconomies of scale accounts for the rising portion of the long run average cost curve.
question
mortgage payment
answer
Which of the following is most likely to be a fixed cost?
question
there will be many firms in the industry
answer
When economies of scale are exhausted at a relatively small scale of production...
question
total cost
answer
total fixed cost + total variable costs=
question
Total fixed costs
answer
Costs that do not change with the level of output
question
Total variable costs
answer
Costs that do change with the level of output
question
Average total cost
answer
Average fixed cost + Average variable cost
question
Average fixed cost
answer
Total fixed cost / Quantity of output
question
Average variable cost
answer
Total variable cost / Quantity of output
question
Marginal cost
answer
Change in total cost / change in output
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