Micro quiz 5

(Table: Barrels of Oil 2) Refer to the table. What is the marginal revenue of producing the fifth barrel of oil? A. 250 B. 50 C. 61 D. 200

B

(Table: Oil Production) Refer to the table. What is the profit of producing 10 barrels of oil? A. $154 B. $80 C. $180 D. $194

B

Marginal cost is: A. total cost divided by the change in total output. B. the change in total cost from producing one more unit of output. C. the change in total output divided by the change in total cost. D. average cost times output.

B

Stock market investors should ultimately focus on a company's: A. total revenue. B. economic profit. C. total costs. D. accounting profit.

B

Price times quantity minus total cost equals: A. total revenue. B. marginal revenue. C. fixed costs. D. profit.

D

(Figure: Costs of Oil Production) Refer to the figure. Assuming that price equals marginal cost, the profit of producing eight barrels of oil is: A. $160. B. $240. C. It cannot be determined from the information given. D. $400

A

(Table: Competitive Firm) Refer to the table. The market price for the product is: A. $90. B. $100. C. A dollar amount, but it cannot be determined from the information in the table. D. $80.

A

(Table: Barrels of Oil 2) Refer to the table. What is the marginal cost of producing the seventh barrel of oil? A. 90 B. 126 C. 36 D. 50

C

In their calculation of profit, accountants typically do not take into account: A. explicit costs. B. fixed costs. C. opportunity costs. D. variable costs.

C

Which of the following statements is TRUE? A. Accounting profit is usually smaller than economic profit. B. Knowledge about explicit costs is more useful for making business decisions than knowledge about implicit costs. C. Unlike implicit costs, explicit costs require monetary outlays. D. Implicit costs equal explicit costs for for-profit firms.

C

(Figure: Profits and Competitive Firms) Refer to the four panels in the figure. Which panel shows a competitive firm making positive economic profits? A. Panel A B. Panel B C. Panel D D. Panel C

D

(Table: Barrels of Oil) Refer to the table. The profit-maximizing level of output is ________ barrels of oil. A. 3 B. 1 C. 7 D. 5

D