Exam 10: Organizing Production

Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself. Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's costs for resources bought in the market equal

Proprietorships, partnerships, and corporations are the primary forms of

An economic profit is

Taco Bell produces both tacos and burritos because when it does so, Taco Bell experiences

In a corporation, the stockholders are the

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. Which of the following best describes the structure of the market for cookies in Eatsweetland?

-The above table gives techniques Jitters Coffee Company can use to package 5,000 pounds of coffee. If the cost of capital is $50 per unit and the cost of labor is $100 per unit, the economically efficient technique for packaging 5000 pounds of coffee is

Economic depreciation is the

Which market type has characteristics as follows: large number of firms, differentiated product?

Over a given period, economic depreciation is the change in capital equipment's

What is the difference between a normal profit and an economic profit?

When bank tellers converse with each other, keeping customers waiting in line, they are

Over the years, the U.S. economy has become increasingly

A market structure in which many firms are selling an identical product is called

-The above table shows the market shares for all the landscaping services in a suburban area. Which of the following mergers would cause the greatest increase in the four-firm concentration ratio?

Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.

If a firm is achieving economic efficiency it must also be achieving technological efficiency.

-The table above shows techniques that can be used to produce 100 shirts. The technique that is NOT technologically efficient is

The principal-agent problem refers to the fact that firms must

Describe the conditions under which monopoly exists. Give two examples.