Quiz Micro Chap 10 & 11
In perfectly competition, the price of the product is determined where the market
Supply curve and market demand curve intersect
Total cost equals
TFC + TVC
The position of a firm's short run cost curve depends on two factors: select all that apply
Technology Prices of factors of product
A proprietorship is a firm with
a single owner who has unlimited liability
The principal-agent problem is the issue of inducing
agents to act in the best interests of principals
The short run is a time frame in which
at least one factor of production is fixed
Team production is a production process in which
Individuals specialize in mutually supportive tasks.
In a perfectly competitive market, there are
many buyers and many sellers
three ways of coping with the principal-agent problem are
ownership, incentive pay, long term contracts
A market structure in which many firms are selling an identical product is called
perfect competition
A cost that has already been made and cannot be recovered is called a
sunk cost
Average total costs are total costs divided by
total output
The break-even point is defined as occurring at an output rate at which
total revenue equals total opportunity cost
Which of the following is not pros for partnership type of firm:
Simple decision making
In the table below, if the firm sells 5 units of output, it's total revenue is Quantity Sold. Price 5. $15 6 $15 7. $15
$75
economies of scale refer to
The range of output over which the long-run average cost falls as output increases.
In the long run, for a perfectly competitive market, if economic profit is - greater than zero, than some firms will market and the market supply curve will shift rightward - equal to zero, then there is no entry or exit of firms into or out of the market - less than zero, then some firms will exit the market and the market supply curve will shift leftward - all of the choices are correct
- all of the choices are correct
The table below provides information about the relationship between labor and various product measures. The total product that can be produced with 6 units of labor is Labor. Total Product. Marginal. Average (Workers) (Units) Product. Product 0. 0. 1 3 2 4.5 3 14 4. 3 5. 19 6. 1
20
The table below gives cost at Jan's bike shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50 bikes? Labor. Output. Total. Total. Total cost (Workers) (Bikes). Fixed Variable (Dollars) Cost $ Cost $ 0. 0. 200. ______. ___________ 1. 20. ______. ______. ___________ 2. 50. ______. ______. ___________ 3. 60. ______. ______. ___________ 4. 64. ______. ______. ___________
400
The table below shows the total product of producing baseball hats. The marginal product of the 4th worker is equal to Labor. Total product (Workers per day). (Hats per day) 0. 0 1. 4 2. 10 3. 18 4. 25 5. 30
7 baseball hats
A perfectly competitive firm's demand curve is
A horizontal line
The table below gives techniques jitter coffee company can use to package 5,000 lbs of coffee. Which technique is technologically inefficient? Technique Capital. Labor (Units). (Units) A. 70. 20 B. 80. 60 C. 120. 20 D. 5. 180
B and C
The four-firm concentration ratio measures
A) competitiveness B) profitability C) technological efficiency
Which of the following curves is not U-shaped?
AFC or average fixed cost curve
Which of the following best defines "economies of scope"?
Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases.
Economic depreciation is the
Change in the market value of capital over a given period.
A firm's total variable cost (TVC) is defined as a cost that
Changes as the firm changes its output
A perfect competitive firm maximizes it's profit by
Choosing to produce the quantity that sets MC equal to MR
Which of the following forms of business organizations is likely is likely to suffer most from the principal agent problem between the owners and managers of the business?
Corporations
Economies of scale exist when the
Cost of producing a unit of a good falls as it's output increases.
All of the following except _____ are a firm's opportunity cost of production is the sum of the cost of using resources.
Economic efficiency
Which of the following statements regarding the long-term equilibrium is TRUE?
Entry and exit stop when firms make zero economic profit
A period of time in which the quantity of all factors of production used by a firm can be varied is called the
Long run
A firm's average variable cost is $60, its total fixed cost is $3,000, and its output is 600 units. It's average total cost is
More than $64
A perfectly competitive firm is definitely making an economic profit when
P > ATC.
For a perfectly competitive firm, in the long-run equilibrium
P=MC=ATC=MR
The long-run average cost curve is the
Relationship between the lowest attainable average total cost and output when both the plant size and labor are varied.
Average product equals the
Total amount of output produced divided by the quantity of labor employed.
A firm's shutdown point is the quantity and price at which the firm's total revenue just equals its
Total variable cost
A firm's total cost (TC) equals the sum of its fixed cost plus its
Variable cost
technological efficiency occurs when the firm produces a given output
by using the least amount of inputs
Total variable cost is the sum of all
costs that rise as output increases
In perfect competition, the product of a single firm
has many perfect substitutes produced by other firms