Section 10 Econ
20.00
According to the table above, which shows the cost of production for a firm, the average total cost of producing 3 units of output is
There are barriers to entry into and exit from the industry
All of the following are essential characteristics of a perfectly competitive industry EXEPT
Monopolistically competitive
An industry consists of 100 small firms, and the largest firm accounts for only 2 percent of sales. Brand names are considered a signal of quality. The industry described is best classified as
Downward sloping and then upward sloping
As a firm expands its output, it initially experiences economies of scale and then diseconomies of scale. The firms long-run average cost curve is
Marginal revenue equals marginal cost
The most profitable level of output for any firm operating in the short run is the level of output at which
Average fixed cost is decreasing
As output of a firm increases, the difference between the firms average total cost and its average variable cost gets smaller because the firm's
A decreasing long-run average total cost curve as a firm produces more output
Economies of scale can be illustrated by
An oligopoly
If the four largest firms in a market produce 88 percent of total industry output, the market is
16,000
If the market price is $10, how many widgets should this profit-maximizing firm produce
Marginal cost equals average total cost
In the short run, a profit maximizing firm, faced with U-shade average cost curve, is producing a level of output at which the average total cost of production is minimized. At this level of output, which of the following is true for the firm
It is equal to average fixed cost plus average variable cost
In the short run, which of the following is true of a firm's average total cost of production
Change in cost resulting from producing an additional unit of output
Marginal cost is defined as the
There are fewer firms in oligopolistic markets
One difference between oligopolies and monopolistically competitive markets is that
Accounting Profit is 50,000, and economic profit is 25,000
Raheem is currently working as a financial analyst earning $75,000 a year and is considering quitting his current job to start an art gallery. The estimated annual revenue from the art gallery is $175,000. The annual cost of labor, advertising, and acquiring the art inventory is $125,000. What are Raheems accounting and economic profits if he opens the art gallery
Diminishing marginal product
Short-run marginal cost eventually increases because of the effects of
Long-run average total cost will decrease because it becomes easier for the firm to manage its workforce
Suppose a firms production process exhibits diseconomies of scale. How and why will costs change if the firm reduces its output
$30
The average fixed cost of producing four units of output is equal to
95.00
The average total cost to the firm of producing 2 units of output it
Average Variable Cost:5 Marginal Cost:7
When output is 3 units, which of the following is correct
All factors of production are variable
Which of the following MUST be true of the long run
I and II only
Which of the following are characteristics of a perfectly competitive industry
Spreading total fixed costs over a large output, and eventually diminishing returns
Which of the following best explains why the short-run average total cost curve is U-shaped
Downward-sloping long-run average total cost curve
Which of the following is a result of increasing returns to scale
The firm is the price taker
Which of the following is true for a perfectly competitive firm
