Econ Test 4

Ace your homework & exams now with Quizwiz!

Refer to Table 13-5. The marginal cost of producing the sixth widget is

$5.00

Refer to Table 13-5. What is the variable cost of producing zero widgets?

$0.00

Refer to Table 13-5. What is the marginal cost of producing the first widget?

$1.00

Refer to Table 13-5. The average total cost of producing one widget is

$11.00

Refer to Table 13-5. What is the variable cost of producing five widgets?

$15.00

Refer to Table 13-5. The average fixed cost of producing five widgets is

$2.00

Refer to Table 13-5. The average variable cost of producing four widgets is

$2.50

XYZ corporation produced 300 units of output but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. Each of the 275 units sold was sold for a price of $95. Total profit for the XYZ corporation would be

-$3,875

Refer to Table 13-2. At which number of workers does diminishing marginal product begin?

5

Refer to Table 13-2. What is the marginal product of the fourth worker?

70

Which of the following statements is correct?

A competitive firm is a price taker and a monopoly is a price maker

Economists normally assume that the goal of a firm is to

C. maximize profit

When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market, we have

Nash equilibrium

Which of these assumptions is often realistic for a firm in the short run?

The firm can vary the number of workers it employs, but not the size of its factory.

Which of the following statements about a production function is correct for a firm that uses labor to produce output?

The production function depicts the relationship between the quantity of labor and the quantity of output.

When a firm has little ability to influence market prices it is said to be in

a competitive market

A firm that is the sole seller of a product without close substitutes is

a monopolist

Which of the following expressions is correct?

accounting profit = economic profit + implicit costs

An agreement among firms regarding price and/or production levels is called

collusion

Monopoly firms have

downward-sloping demand curves and they can sell only a limited quantity of output at each price.

A special kind of imperfectly competitive market that has only two firms is called

duopoly

Refer to Figure 13-1. With regard to cookie production, the figure implies

diminishing marginal product of workers

Which of the following is not a reason for the existence of a monopoly?

diseconomies of scale

For a firm in a perfectly competitive market, the price of the good is always

equal to marginal revenue

Which of the following is NOT a characteristic of a perfectly competitive market?

firms have difficulty entering the market

Which of the following is an implicit cost?

forgone rent on office space used and owned by the firm

A typical firm in the U. S. economy would be classified as

imperfectly competitive

The marginal product of labor is equal to the

increase in labor necessary to generate a one unit increase in output

A production function is a relationship between

inputs and quantity of outputs

There are two types of imperfectly competitive markets:

monopolistic competition and oligopoly

Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly is often

not in the best interest of society, doesn't maximize total economic well-being, and is inefficient

Game theory is important for the understanding of

oligopolies

The commercial jetliner industry, consisting of Boeing and Airbus, would best be described as a (an)

oligopoly

Those things that must be forgone to acquire a good are called

opportunity costs

When a perfectly competitive firm decides to shut down, it is most likely that

price is below the firms average variable cost

Imperfectly competitive firms are characterized by

price making ability

The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which

profit is maximized

John owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements?

the cost of shoe polish

An oligopoly is a market in which

there are only a few sellers, each offering a product similar or identical to the products offered by other firms in the market.

The amount of money that a firm pays to buy inputs is called

total cost

Refer to Figure 13-1. As the number of workers increases,

total output increases, but at a decreasing rate

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

total revenue


Related study sets

Antimicrobial Drugs - Chapter Exam 15

View Set

NCLEX Practice Questions to Remember

View Set

OB Chap 21 Nursing Management of Labor and Birth at Risk

View Set

Chapter 9: Building a New Venture Team

View Set

AP Environmental Science Unit 7 Exam Review

View Set