Exam 10: Organizing Production

Which market type has characteristics as follows: one firm, good or service produced has no close substitutes, barriers to entry prevent new firms from entering into the industry?

"When the cost of producing a unit of a good falls because the firm uses specialized resources to produce a range of goods and services" is the definition of

Among the opportunity costs of a firm are all of the following EXCEPT

Smith's Shoes is a failed business enterprise, with debts of $10 million. Steve Smith has an ownership stake in Smith's shoes. Which of the following statements INCORRECTLY characterizes Steve Smith's legal liability for the debts of Smith's Shoes, depending on the firm's type of business organization?

"The concentration measures for the United States calculated by the Department of Commerce understate the degree of concentration in the newspaper industry." Do you agree? Explain.

A firm's market constraints include the conditions under which it can

A student wrote: "Monopolistic competition is a market structure in which a small number of firms compete by making an identical product." If you were the instructor, how would you correct this statement?

Suppose Angelo Sessa, owner of Sezz Medi Brick Oven Pizza in NYC, earns $350,000 in revenue per year. He spends $800 a month on ash wood for his stove, $2000 a month on rent, and $1500 a month on ingredients. He used to be a lawyer and earned $240,000 a year before he opened up Sezz Medi. Normal profit for a pizza business is $30,000. What is Angelo's opportunity cost of production?

-The table above shows four methods for producing 10 computer desks a day. If the cost of a worker is $100 a day and the cost of capital is $100 a day, the method that is economically efficient is ________.

Economies of scale exist when the ________ a unit of a good ________.

A corporation is a firm owned by

Which of the following can lead to a firm being more efficient that a market? A firm can have I. economies of scale. II) economies of scope. III) lower transactions costs.

Can a firm achieve technological efficiency without achieving economic efficiency?

What is the main advantage and the main disadvantage of organizing a businesses as either a proprietorship or as a partnership rather than as a corporation?

A principal-agent problem occurs when hiring workers to work for a firm because

A large part of the principal-agent problem stems from the desire of

Joe quits his job as an insurance agent and opens his own sporting goods store. If his profits as measured by his accountant are greater than zero, then

Flora's Flower Shop bought a new van for $23,000. Today, the market price of this van is $11,000. The economic depreciation of the van is ________.

The owner of a proprietorship might decide incorporate the firm as a corporation in order to

In monopolistic competition, there are ________.