The table provides daily data on Marla's Smoothie Shop. Use these data to answer the question. What is Marla's profit margin? \[\begin{array}{l} \text { Table: Marla's Smoothie Shop }\\ \begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Total } \\ \text { revenue } \end{array} & \text { Total cost } & \begin{array} { c } \text { Average } \\ \text { revenue } \end{array} & \begin{array} { c } \text { Fixed } \\ \text { costs } \end{array} & \begin{array} { c } \text { Variable } \\ \text { costs } \end{array} & \text { Quantity } \\ \hline \$ 1,400 & \$ 900 & \$ 7 & \$ 200 & \$ 700 & 200 \\ \hline \end{array} \end{array}\]

A) $5.00 B) $4.50 C) $3.50 D) $2.50 A) $5.00 B) $4.50 C) $3.50 D) $2.50

Samuel's company is in the following situation: What is the average cost at Samuel's company? \[\begin{array} { | l | l | l | l | l | } \hline \text { Total cost } & \begin{array} { l } \text { Total } \\ \text { revenue } \end{array} & \begin{array} { l } \text { Direct } \\ \text { financial cost } \end{array} & \begin{array} { l } \text { Implicit } \\ \text { opportunity } \\ \text { cost } \end{array} & \text { Quantity } \\ \hline \$ 102,000 & \$ 142,000 & \$ 40,000 & \$ 62,000 & 7,100 \\ \hline \end{array}\]

A) $14.37 B) $5.63 C) $34.37 D) $20.00 A) $14.37 B) $5.63 C) $34.37 D) $20.00

Exam 15: Entry, Exit, and Long-Run Profitability

In southern California, the demand for real estate has been increasing rapidly for years. Therefore, the _ cost of capital is _ in southern California's vineyards.

(Multiple Choice)

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(32)

Question 141

Suppose your local Lowe's home improvement store has explicit financial costs of $3 million per year and implicit opportunity costs of $74,000 per year. If the store earned an economic profit of $22,000 last year, the store's accounting profit was:

(Multiple Choice)

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Question 142

Total revenue divided by the quantity sold equals:

(Multiple Choice)

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Question 143

The table provides daily data on Marla's Smoothie Shop. Use these data to answer the question. What is Marla's profit margin? Table: Marla's Smoothie Shop Total revenue Total cost Average revenue Fixed costs Variable costs Quantity \ 1,400 \ 900 \ 7 \ 200 \ 700 200

(Multiple Choice)

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Question 144

_____ exist(s) when the value of a good or service to an individual increases as the number of other people using the same good or service increases.

(Multiple Choice)

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Question 145

Suppose Naomi's yoga studio charges the market price, which is slightly below Naomi's average cost. This means that Naomi:

(Multiple Choice)

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Question 146

Samuel's company is in the following situation: What is the average cost at Samuel's company? Total cost Total revenue Direct financial cost Implicit opportunity cost Quantity \ 102,000 \ 142,000 \ 40,000 \ 62,000 7,100

(Multiple Choice)

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Question 147

A government may want to create barriers to sellers entering a given market for all of the following reasons EXCEPT:

(Multiple Choice)

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Question 148

Free entry and exit means that in the long run, price will:

(Multiple Choice)

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Question 149

In the short run, a seller _, but in the long run, _.

(Multiple Choice)

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Question 150

(Figure: Demand and Average Cost Curves) Which of the following diagrams represents the demand and average cost curves of a firm in the long run, given free entry and exit?

(Multiple Choice)

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Question 151

(Figure: Profit Margin 3) JoJo's company data is in the graph below. JoJo would earn a profit:

(Multiple Choice)

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Question 152

On a graph of a company's cost, revenue, and demand curves, the company's profit margin can be identified as the gap between _ and _ for a given quantity.

(Multiple Choice)

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Question 153

Janelle owns a small hotel in San Francisco near Fisherman's Wharf. She pays $30,000 per year in insurance, $418,000 in wages, and $43,000 in supplies. She forgoes $30,000 per year she could make as a police officer. Her total revenue last year equaled $560,000. That means her economic _ equaled _.

(Multiple Choice)

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Question 154

The Mile End Deli serves traditional delicatessen food in Brooklyn, New York. Which cost is MOST likely fixed at the deli?

(Multiple Choice)

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Question 155

(Figure: Profit Margin) What is the profit margin for this firm if it produces a quantity of six?

(Multiple Choice)

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Question 156

Beginning at an output of one, as output increases, average variable costs:

(Multiple Choice)

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Question 157

Ari owns a hair salon in a small city. Which of the following is NOT an effect that the opening of new hair salons in her city will have on her salon?

(Multiple Choice)

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Question 158

If a company gains market power as an input buyer, then:

(Multiple Choice)

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Question 159

If some firms are incurring economic losses, then in the long run, the:

(Multiple Choice)

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Question 160

Exam 15: Entry, Exit, and Long-Run Profitability

In southern California, the demand for real estate has been increasing rapidly for years. Therefore, the _____ cost of capital is _____ in southern California's vineyards.

Suppose your local Lowe's home improvement store has explicit financial costs of $3 million per year and implicit opportunity costs of $74,000 per year. If the store earned an economic profit of $22,000 last year, the store's accounting profit was:

Total revenue divided by the quantity sold equals:

The table provides daily data on Marla's Smoothie Shop. Use these data to answer the question. What is Marla's profit margin? Table: Marla's Smoothie Shop Total revenue Total cost Average revenue Fixed costs Variable costs Quantity \ 1,400 \ 900 \ 7 \ 200 \ 700 200

_____ exist(s) when the value of a good or service to an individual increases as the number of other people using the same good or service increases.

Suppose Naomi's yoga studio charges the market price, which is slightly below Naomi's average cost. This means that Naomi:

Samuel's company is in the following situation: What is the average cost at Samuel's company? Total cost Total revenue Direct financial cost Implicit opportunity cost Quantity \ 102,000 \ 142,000 \ 40,000 \ 62,000 7,100

A government may want to create barriers to sellers entering a given market for all of the following reasons EXCEPT:

Free entry and exit means that in the long run, price will:

In the short run, a seller _____, but in the long run, _____.

(Figure: Demand and Average Cost Curves) Which of the following diagrams represents the demand and average cost curves of a firm in the long run, given free entry and exit?

(Figure: Profit Margin 3) JoJo's company data is in the graph below. JoJo would earn a profit:

On a graph of a company's cost, revenue, and demand curves, the company's profit margin can be identified as the gap between _____ and _____ for a given quantity.

The Mile End Deli serves traditional delicatessen food in Brooklyn, New York. Which cost is MOST likely fixed at the deli?

(Figure: Profit Margin) What is the profit margin for this firm if it produces a quantity of six?

Beginning at an output of one, as output increases, average variable costs:

Ari owns a hair salon in a small city. Which of the following is NOT an effect that the opening of new hair salons in her city will have on her salon?

If a company gains market power as an input buyer, then:

If some firms are incurring economic losses, then in the long run, the:

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

Elasticity: Measuring Responsiveness

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Business Strategy

Sophisticated Pricing Strategies

Game Theory and Strategic Choices

Decisions Involving Uncertainty

Decisions With Private Information

Sizing up the Economy Using Gdp

Economic Growth

Unemployment

Inflation and Money

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

The Fed Model: Linking Interest Rates, Output, and Inflation

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

Filters

In southern California, the demand for real estate has been increasing rapidly for years. Therefore, the _ cost of capital is _ in southern California's vineyards.

In the short run, a seller _, but in the long run, _.

On a graph of a company's cost, revenue, and demand curves, the company's profit margin can be identified as the gap between _ and _ for a given quantity.