Eco Exam 4

EQ The market price of pomegranates is 2

- ($50.00; $2.00)

EQ The following shows the costs associated with the numbe

- (66)

EQ In the graph, which shows a firm in a perfectly competitive market

- (80)

EQ James opens a wing shop in Gulf Coast Town Center. To do thi

- (Implicit cost)

EQ Larry left a job as an accountant making $40,000

- (Larry is actually experiencing an economic loss of $2,560)

EQ Which statement about marginal revenue (MR) is NOT true?

- (MR is the total revenue divided by the total cost)

EQ The graph represents a firm that produces the profit-maximizing

- (Market supply will increase, pushing prices lower.)

EQ Miguel owns a taco shop in the city

- (Miguel has some control over his price)

EQ What happens when firms in an industry are earning positive economic

- (New firms will enter the indeurey causing a rightard shift)

EQ If the price of copper pipes is $70 in a perfectly competitive

- (No, this firm should be producing more to maximize profit.)

EQ In the graph, which shows a firm in a perfectly

- (Price = $12; Quantity = 14)

EQ If the average total cost is

- (Some firms will exit the market, pushing the market price higher)

EQ If Glass Inc. produces 80

- (The price would remain the same.)

EQ In a perfectly competitive industry, short-run

- (enter; decrease)

EQ If the market price is $60

- (he firm should continue producing in the short run in order to minimize losses.)

EQ A firm will expand the

- (marginal revenue exceeds its marginal cost)

EQ A firm will expand the amount of output i

- (marginal revenue exceeds its marginal cost)

EQ Which market structure does not exhibit

- (perfect competition)

EQ Which sequence of market structures ranks

- (perfect competition; oligopoly; monopoly)

EQ two farms, farm a and farm b, grow identical types of wheat

- (perfect substitute for wheat from farm B)

EQ a firm In a perfectly competitive industry, long

- (there are no barriers to entry).

EQ Which goal BEST explains why

- (to earn a profit)

EQ If the total variable cost of producing three wickets is $30, while the average fixed cost of producing three wickets is $25, then the total cost of producing three wickets is:

- 105

EQ If the total cost of 3 units is $40 and the total cost of 4 units is $50, the marginal cost of the fourth unit is:

- 50 - 40 = 10

JUSTIN BEGINS How do you find diminishing marginal returns

- Begins when the marginal product begins to fall (Forth Worker)

AJ PLANS What is sunk cost /

- Sunk costs are the costs that are not recoverable once spent. - Future decisions should not depend on sunk costs already incurred. (500)

EQ Which statement describes a situation in which negative returns to labor occur

- The marginal product of labor falls below zero

WHICH STATEMENT IS T When Happens when the total product curve reaches a peak

- When marginal Product is ZERO

What INPUTS can be altered in the short run

- amount of labor they employ

AMY DESC What are explicit costs /

- are those expenses paid directly to some other economic entity - These costs include wages, lease payments, expenditures for raw materials, taxes, utilities, INTEREST payed

A WEDDING PLA How to calculate Marginal Product

- by dividing the change in output (ΔQ) by the change in labor (ΔL) ((120-70)/1) = 50)

What are the characteristics of a corporation

- have most of the legal rights of individuals - able to issue stock to raise capital - the ability to raise large amounts of capital because of limited liability - is limited to the amount they have invested in (or paid for) the stock

EQ A firm experiencing

- increasing returns to scale

EQ Which product is least likely to be produced in a perfectly competitive market?

- products that have less deman - (airline jet fuel)

DANS CAR - 150000 (Rev) 120000 (expli c) 40000 (impli c) /

150000-12000-40000 = -10000 > 0 Means no normal Profit

DAVID EARNS THREE How do you find averages

5 + 9 +12+11/4 = 3

WALMART IS ABLE What is Long run economies of scale

A savings in cost gained by increasing production (Long run economies of scale)

EQ statements best describes the short run in economics

IDK