Question 1

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

Accepted Answer

A)  marginal costs 
B)  average costs 
C)  total revenue 
D)  variable costs 
A)  marginal costs 
B)  average costs 
C)  total revenue 
D)  variable costs

Question 2

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

Accepted Answer

A)  its' fixed costs 
B)  the quantity of output 
C)  its' average costs 
D)  diminishing marginal costs 
A)  its' fixed costs 
B)  the quantity of output 
C)  its' average costs 
D)  diminishing marginal costs

Question 3

-The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.

Accepted Answer

A)  in the short-run, the demand curve and average revenue shift as other firms enter the market and increase competition 
B)  in the short-run, the demand curve and average revenue shift as other firms leave the market and decrease competition 
C)  in the long-run, the demand curve and average revenue shift as other firms enter the market and increase competition 
D)  in the long-run, the demand curve and average revenue shift as other firms leave the market and decrease competition 
A)  in the short-run, the demand curve and average revenue shift as other firms enter the market and increase competition 
B)  in the short-run, the demand curve and average revenue shift as other firms leave the market and decrease competition 
C)  in the long-run, the demand curve and average revenue shift as other firms enter the market and increase competition 
D)  in the long-run, the demand curve and average revenue shift as other firms leave the market and decrease competition

Question 4

-The graph above illustrates the total cost function for GoodieCookie Co. The changing slope of the total cost curve reflects this company's

Accepted Answer

A)  decreasing average total costs. 
B)  decreasing marginal costs. 
C)  decreasing average variable costs. 
D)  decreasing fixed costs. 
A)  decreasing average total costs. 
B)  decreasing marginal costs. 
C)  decreasing average variable costs. 
D)  decreasing fixed costs.

Question 5

Refer to the table below.
 
If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal?

Accepted Answer

A)  losses equal $5 
B)  profits equal $5 
C)  profits equal $25 
D)  losses equal $25 
A)  losses equal $5 
B)  profits equal $5 
C)  profits equal $25 
D)  losses equal $25

Question 6

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

Accepted Answer

A)  monopoly 
B)  economies of scale 
C)  diminishing returns 
D)  diseconomies of scale 
A)  monopoly 
B)  economies of scale 
C)  diminishing returns 
D)  diseconomies of scale

Question 7

When __________________ exist, doubling of all inputs will result in more than doubling output, which means __________________________________________.

Accepted Answer

A)  economies of scale; a larger factory can produce at a lower average cost than a smaller company. 
B)  economies of scale; a smaller factory can produce at a lower average cost than a larger company. 
C)  low labor inputs; larger scale of production leads to higher costs. 
D)  labor inputs; economies-of-scale curve is U-shaped. 
A)  economies of scale; a larger factory can produce at a lower average cost than a smaller company. 
B)  economies of scale; a smaller factory can produce at a lower average cost than a larger company. 
C)  low labor inputs; larger scale of production leads to higher costs. 
D)  labor inputs; economies-of-scale curve is U-shaped.

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

-The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.

-The graph above illustrates the total cost function for GoodieCookie Co. The changing slope of the total cost curve reflects this company's

Refer to the table below. If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal?

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

When exist, doubling of all inputs will result in more than doubling output, which means ________________________.

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Exam 7: Cost and Industry Structure

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

-The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.

-The graph above illustrates the total cost function for GoodieCookie Co. The changing slope of the total cost curve reflects this company's

Refer to the table below. If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal?

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

When __________________ exist, doubling of all inputs will result in more than doubling output, which means __________________________________________.

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

When exist, doubling of all inputs will result in more than doubling output, which means ________________________.