ECON Quiz 2

Expand; exceeds

A profit-maximizing competitive firm wants to _____ the rate of output when price _____ marginal cost.

An oligopoly.

An industry in which a few large firms supply most or all of a product is known as:

The law of diminishing returns.

Assume a toy company hires an additional worker to assemble toys, and the size of the factory and amount of equipment remain constant. As a result, the level of output increases but by a smaller amount than when the previous additional worker was hired. This is an example of:

Total cost divided by the quantity produced.

Average total cost is defined as:

Which of the following is not characteristic of a perfectly competitive market?

Brand loyalty

Their individual production is insignificant relative to the production of the industry.

Competitive firms cannot individually affect market price because:

Ability and willingness to buy specific quantities of a good or service at various prices in a given time period, ceteris paribus.

Demand is defined as the:

Decrease by 8 percent.

Suppose the price elasticity of demand for tacos is 0.80. If the price of tacos increases by 10 percent, then the quantity demanded of tacos should, ceteris paribus:

supply

The MC curve is a competitive firm's short-run _____ curve.

Total utility.

The amount of utility obtained from the entire consumption of a good is known as:

U-shaped.

The average total cost curve is:

Marginal physical product.

The change in total output that results from one additional unit of input is the:

Land, labor, capital, and entrepreneurship.

The factors of production include:

The total product production function will eventually increase at a decreasing rate.

The law of diminishing returns means that:

Summing the quantities demanded from individual demand curves.

The market demand curve is calculated by:

The production function.

The maximum output that can be produced from a set of inputs is measured by:

Utility

The pleasure or satisfaction obtained from goods and services is known as:

Percentage change in quantity demanded divided by the percentage change in price.

The price elasticity of demand is defined as the:

Rent for the factory

When producing jeans, which of the following are not a variable cost in the short run?

The number of buyers in the market.

Which of the following causes the market demand curve for a good to shift?

One large firm supplies the entire product to the market

Which of the following is an example of a monopoly?

Many small firms all produce the same good

Which of the following is an example of perfect competition?

Technological advances.

Which of the following is not a determinant of demand for a good?

The cost of factors of production.

Which of the following is not a determinant of demand?

Variable costs.

If a firm increases output, total costs will rise because of a change in:

Profit is increasing.

If price is greater than marginal cost for the last unit produced:

That after the second worker marginal product declines.

If the first, second, third and fourth worker employed by the firm add 15, 21, 12 and 8 units of total product respectively, we can conclude that:

Satisfaction obtained from a good or service.

In economic theory, utility refers to the:

Price is greater than marginal cost.

In the short run, a manufacturer should produce the next unit of output as long as:

Additional utility from consuming the last unit of a good.

Marginal utility refers to the: