Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were:
$200,000 and its economic profits were zero
The basic characteristic of the short run is that:
. the firm does not have sufficient time to change the size of its plant.
To economists, the main difference between the short run and the long run is that:
in the long run all resources are variable, while in the short run at least one resource is fixed.
The law of diminishing returns indicates that:
as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
Which of the following statements concerning the relationships between total product (TP), average product (AP), and marginal product (MP) is not correct?
AP continues to rise so long as TP is rising.
Which of the following best expresses the law of diminishing returns?
As successive amounts of one resource (labor) are added to fixed amounts of other resources (capital), beyond some point the resulting extra output will decline
The total variable cost of producing 5 units is:
The average total cost of producing 3 units of output is:
. The average fixed cost of producing 3 units of output is
The marginal cost of producing the sixth unit of output is:
The profit-maximizing output for this firm:
Economies and diseconomies of scale explain:
why the firm's long-run average total cost curve is U-shaped.
. The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. The shape of each individual curve reflects:
. increasing returns, followed by diminishing returns.
As the firm in the above diagram expands from plant size #1 to plant size #3, it experiences:
economies of scale.
As the firm in the above diagram expands from plant size #3 to plant size #5, it experiences:
diseconomies of scale.
. The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. In the long run the firm should produce output 0x with a plant of size:
1 Which Best demonstrates the Law of Diminishing Marginal Utility.
2 Refer to the graph above what's the marginal utility for the unit 4.
3 Refer to the table above the addition of which units has the greatest marginal utility.
4 Refer to the above table at which consumption level for this product does diminishing marginal utility.
5 Refer to the above table if the consumer can only buy product x how will the consumer and will be total utility
5x and 120
6 Refer the above diagram if consumers buy product X and Product Y How much will the consumer buy of each to maximize utility
7 Refer to the above to the above diagram when the consumer purchases the utility maximizing producing X and Product Y total utility will be
8 Refer to the above table suppose that consumers income increase from $20 to $30 what would be the utility maximizing combination of products X and Y
5x and 5y
9 John Brook quite his job where he earned 15000 per year to become a graduate student in economics. At the university he attended he spent 2000 on books 1000 on cough medicine and earned 12000 as an economics professor what were John economics cost while he attended college
10 Suppose that you could prepare your own tax return in 15 hours you could hire a tax specialist to prepare it for 2 hours. You value your time at $11 per hour. The specialist will charge 55 a hour. Opportunity cost of preparing your own Tax is
11 For the Nation Depicted in the Table below the opportunity cost of moving from combination A to Combination B
12 The Total variable cost of producing 5 units is
13 Average total cost of producing 3 units output is
14 Refer to the above table the average fixed cost of producing 3 units of output is
15 Refer to the above table the marginal cost of producing the sixth unit of the outputs
1. The ability of a good or service to satisfy wants is called: