Question 1

The total cost curve generally has

Accepted Answer

A) slope values which first decrease and then increase rapidly. 
B) slope values which first increase rapidly and then decrease. 
C) increasing slope values. 
D) decreasing slope values. 
A) slope values which first decrease and then increase rapidly. 
B) slope values which first increase rapidly and then decrease. 
C) increasing slope values. 
D) decreasing slope values.

Question 2

Average revenue is slightly higher than price.

Accepted Answer

A) True 
 B)False

Question 3

Total profit equals

Accepted Answer

A) TR − TC. 
B) average profit times total output. 
C) total sales revenue minus total cost. 
D) All of the above are correct. 
A) TR − TC. 
B) average profit times total output. 
C) total sales revenue minus total cost. 
D) All of the above are correct.

Question 4

Once the profit-maximizing output where MR = MC is determined, price is set by

Accepted Answer

A) adding a standard markup percentage to marginal cost. 
B) the demand curve. 
C) making it equal to MR = MC. 
D) subtracting the marginal cost from total revenue. 
A) adding a standard markup percentage to marginal cost. 
B) the demand curve. 
C) making it equal to MR = MC. 
D) subtracting the marginal cost from total revenue.

Question 5

Many large universities rent out parts of their campuses to conference groups during the summer because such groups cause little damage, require little staff attention, and bring in large amounts of income.A university's decision to rent its campus to a conference group is most clearly based on

Accepted Answer

A) the idea that price and quantity selection is a single decision. 
B) the principle of decreasing returns to scale. 
C) marginal analysis. 
D) average cost considerations. 
A) the idea that price and quantity selection is a single decision. 
B) the principle of decreasing returns to scale. 
C) marginal analysis. 
D) average cost considerations.

Question 6

Marginal revenue is the addition to total revenue resulting from the addition of one unit to total output.

Accepted Answer

A) True 
 B)False

Question 7

Sally leaves her $24,000 secretarial position with a company and invests her savings of $15,000 (on which she was earning 6 percent interest) in her own Ready Sec agency.After expenses, her net income was $28,900.Her economic profit was

Accepted Answer

A) $4,900. 
B) $4,000. 
C) $28,900. 
D) −$10,100. 
A) $4,900. 
B) $4,000. 
C) $28,900. 
D) −$10,100.

Question 8

"As long as total revenue slopes up, marginal revenue must slope up also." Explain whether this statement is true or false.

Accepted Answer

Marginal revenue is the slope

The total cost curve generally has

Average revenue is slightly higher than price.

Total profit equals

Once the profit-maximizing output where MR = MC is determined, price is set by

Many large universities rent out parts of their campuses to conference groups during the summer because such groups cause little damage, require little staff attention, and bring in large amounts of income.A university's decision to rent its campus to a conference group is most clearly based on

Marginal revenue is the addition to total revenue resulting from the addition of one unit to total output.

Sally leaves her $24,000 secretarial position with a company and invests her savings of $15,000 (on which she was earning 6 percent interest) in her own Ready Sec agency.After expenses, her net income was $28,900.Her economic profit was

"As long as total revenue slopes up, marginal revenue must slope up also." Explain whether this statement is true or false.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Production Inputs and Cost Building Blocks for Supply Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Externalities the Environment and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters

Exam 8: Output Price and Profit the Importance of Marginal Analysis

The total cost curve generally has

Average revenue is slightly higher than price.

Total profit equals

Once the profit-maximizing output where MR = MC is determined, price is set by

Many large universities rent out parts of their campuses to conference groups during the summer because such groups cause little damage, require little staff attention, and bring in large amounts of income.A university's decision to rent its campus to a conference group is most clearly based on

Marginal revenue is the addition to total revenue resulting from the addition of one unit to total output.

Sally leaves her $24,000 secretarial position with a company and invests her savings of $15,000 (on which she was earning 6 percent interest) in her own Ready Sec agency.After expenses, her net income was $28,900.Her economic profit was

"As long as total revenue slopes up, marginal revenue must slope up also." Explain whether this statement is true or false.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Production Inputs and Cost Building Blocks for Supply Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Externalities the Environment and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters