Micro Economics- 16-22
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