Micro Economics- 16-22

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T4: profit

total revenue minus total cost

T4: total profit for a firm is calculated by

total revenue minus total costs

Q2: What would be the firm's total revenue if it instead produced and sold 4 units per output

$32.00

Q1: The firms total cost is

$500

T4: accounting profit is equal to

total revenue minus the explicit cost of pro ducting goods and services

Q1: What is Samathas explicit cost

$80,500

T4: tonys accountant would most likely figure the total costs of his wheat planting to equal

130

Q1: Marginal Product of the 13th worker is

132 units of output

T4: TOtal revenue for the XYZ corporation would be

26,125

T4: what is the total opportunity costs of the day that farmer tony incurred for his spring day in the field planting wheat

380

T4: firms total revenue when it produces 6 units of output

48

Q1: THE AMOUNT BY WHICH TOTAL COST RISES WHEN THE FIRM produces one additional unit of output is called

marginal cost

Q2: price is P1,

P1 x Q2

Q2: price is P4,

P2 x Q4

T4: when price equals M3,

Q3 is the output

T4: When the price equals MC4

Q4 is the output

Q1:The cost of producing an additional unit of output is the firms

marginal costs

T4: the firm will make the most profits if

marginal revenue equals marginal costs

Q1: For a large firm that produces and sells automobiles, which costs would be a variable costs

all of the above are correct

Q3: a firm that is a natural monopolist

all of the above are correct

T4: fixed costs can be defined as costs that

are incurred even if nothing is produced

T4: natural monopolies differ

are not worried about competeition

Q3: source of monopoly power

barriers to entry

T4: a fundmental source of monopoly market power arises from

barriers to entry

Q3: for a monopolist

marginal revenue is always less than price of the good

T4; economic profit is equal to

total revenue minus the opportunity costs of pro ducting goods and services

T4: the government finances the budget deficit by

borrowing from the public

T4: little ability to influence the market

comettive markey

Q2: when a firm has little ability to influence market prices it is said to be in

competitive market

T4: little ability to influence market prices

competitive market

T4: the us income tax

discourages savings

Q3: drug companies are allowed to be monopolists in the drugs if they

encourage research

Q2: for a firm in a perfectly competitive market the price of a good is always

equal to the marginal revenue

T4: taxes on gasoline is what kind of tax

exercise tax

T4: a firms opportunity costs of production amount to its

explicit costs + implicit costs

T4: the three average total cost curves on the diagram correspond to three different

firms

T4: law of supply

firms are willing to produce a greater quality of the good when the price of the good is higher

T4: not a characteristic of a perfectly completive market

firms have difficulty entering the market

Q1: Some costs do not vary with the quantity of output produced. Those cost are called

fixed cost

T4: accountants are primarily interested in the

flow of money into and out of firms

Q2: Competitive firm

for all firms, average revenue equals the price of the good

T4: the firms experiences economies of scale if it changes its level of output

from Q1 to Q2

T4: the firms experiences of diseconomies of scale if it changes its level of output

from Q4 to Q5

T4: a budget deficit

government receipts are less than spending

T4: in competitive market, any single buyer or seller will

have a negligible impact on the market price

T4: as a general rule, when accountants calculate profit they account for explicit costs but usually ignore

implicit costs

T4: when accountants calculate profit they account for explicit costs but usually ignore

implicit costs

T4: the marginal product of labor is equal to the

increased in output obtained from a one unit increase in labor

T4: the largest source of income for the federal government is

individual income tax

T4: a production function is a relationship between

inputs and quantity of outputs

Q2: When a completive firm triples the amount of output it sells

its total revenue triples

Q3; in order to sell more of its products, a monopolists must

lower its prices

Q3: firm that is a sole seller to a product

monopolist

T4: tommys tires

more firms will enter the market

T4;patent and copyright laws are a major form of

natural monopolies

T4: free entry means that

no legal barriers prevent a from from entering an industry

Q3: not a characteristic of a monopoly

one buyer

T4: the 25,000 dollars Susan gave up is counted as part of the catering firms

opportunity costs

T4: for a monopoly to arise for a single firm is to

own a key resource

T4: perfectly competitive market

price always equals to marginal revenue

T4:take the selling price as given

price takers

Q3: a monopolists maximizes profits by

producing an output level where marginal reveue equals

Q3: economists assume that monopolists behave as

profit maximizers

T4: explicit costs

requires an outlay of money by the firm

Q1: Accounting profit is equal to

revenue minus the explicit cost of producing goods and services

Q2: When total revenue is less than variable costs, a firm in a competitive market will

shut down

Q2: when total revenue is less than variable costs, a firm in a competitive market will

shut down

T4: one characteristic of a perfectly completive market is

standardized product

Q2: cost that has already been committed

sunk costs

T4: an example of implicit cost of production would be

the income an entrepreneur could have earned working for someone else

T4: a natual monopoly occurs when

there are economies of scale over the relevant range of output

Q3: a natural monopoly arises when

there are economies of scale over the relevant range of outputs

T4: the amount of money that a from pays to buy inputs is called

total cost

Q1: Average total cost is equal to

total cost/output

T4: the amount of money that a firm receives from the sale of its output is called

total revenue

Q1: Economic profit is equal to

total revenue minus the accounting cost of producing goods and services

Q2: when calculating marginal costs, what must the firm know

variable costs

T4: if a firm produces nothing which costs will be zero

variable costs

T4: sunk costs is

was paid in the past


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