1. Which of these is NOT a way that technology can affect the firm?

a. Marginal costs are lowered

b. Marginal product curve shifts upward

c. Average costs are lowered

d. Average product curve shifts downward

2. Which of these best describes the marginal cost curve?

a. It slopes downward

b. It is a horizontal line

c. It is vertical line

d. It slopes upward

3. At which point in the cost curves can the efficient scale of the firm be found?

a. Highest point of the marginal cost curve

b. Highest point of the marginal revenue curve

c. Lowest point of the average variable cost

d. Lowest point of the average total cost

4. Which of the following would have the longest long run time period?

a. Computer repair shop

b. Newspaper printing press

c. Department store

d. Food kiosk

5. Which of these is an implicit cost?

a. Utilities expense

b. Opportunity cost

c. Interest expense

d. Depreciation