question
Implicit costs are:
answer
"payments" for self-employed resources
question
The main difference between the short run and the long run is that:
answer
In the short run, some inputs are fixed
question
When a bakery manager reports that at her bakery, productivity of her 15 workers last month was 1,800 loaves per worker, she is referring to the:
A. Total Product of Labor
B. Average Product of Labor
C. Marginal Product of Labor
D. Total Product of Capital
A. Total Product of Labor
B. Average Product of Labor
C. Marginal Product of Labor
D. Total Product of Capital
answer
Average Product of Labor
question
Fixed costs are those costs which are:
answer
Independent of the rate of ouput
question
Refer to the graph above. If the market price is $C, the firm should:
A. Continue to operate with positive profits
B. Continue to operate with negative profits
C. Expand output to increase market price
D. Shut down
A. Continue to operate with positive profits
B. Continue to operate with negative profits
C. Expand output to increase market price
D. Shut down
answer
Shut down
question
If the price of labor or some other variable resource decreased, the:
answer
MC curve would shift downward
question
Refer to the table above. What is the long-run average cost of producing 30 units of output?
A. $7
B. $8
C. $9
D. $10
A. $7
B. $8
C. $9
D. $10
answer
$7
question
Which would contribute most to a firm experiencing "economies of scale?"
answer
Specialization of producing within a firm
question
Which characteristic would best be associated with pure competition?
A. Few sellers
B. Price takers
C. Nonprice competition
D. Product Differentiation
A. Few sellers
B. Price takers
C. Nonprice competition
D. Product Differentiation
answer
Price takers
question
In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is:
answer
Equal to the price
question
Refer to the graph above for a purely competitive firm in the short run. The firm would suffer losses if it operates at which of the following range of output?
A. 0A
B. AB
C. BC
D. Any level below C
A. 0A
B. AB
C. BC
D. Any level below C
answer
A. 0A
question
The short-run supply curve for a competitive firm is the:
answer
Segment of the MC curve lying above the AVC curve
question
IF a purely competitive firm is producing at an output where marginal revenue is greater than marginal cost, the firm will increase its profit by:
answer
Increasing its ouput
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