15. Economics prot: a cannot be negative. b. can exceed the riskadjusted normal rate ofreturn. c. is less than the risk-adjusted normal rate of return. d. does not reect the cost ofownersupplied inputs. 16. Ally limit on asset redeployment from one line of business or industry to another is called a: a. barrier to mobility. b. barrier to entry. c. barrier to exit. d. capacity constraint. 1?. Above-normal prots in a perfectly competitive industry are caused by: a. increases in demand that are SDDCBESlllj-f anticipated. b. decreases in cost that are successfully anticipated. c. increases in productivity that are successfully anticipated d. luck. 18. Consumers\" surplus represents: a. total revenues. b. total revenues less total costs. c. the excess of revenues above and beyond the oost of output to producers. d. the value ofoutput to customers above and beyondthe amount paid to producers. 19. The production inction Q = eased-51r exhibits: constant: returns to scale. increasing returns to scale. increasing and then diminishing returns to scale. . diminishing returns to scale. 51-.\" 33'!\" 20. TWhen the slope of the average product curve equals zero: a. total product is maximized. b. returns to the variable input are increasing. c. marginal product equals average product. [1. marginal product equals zero. 21. The acquisition cost ofan asset is: a replacement cost. an implicit cost. an explicit cost. an opportunity cost. FL." 33'!\" 22. Fixed costs inchide: variable labor expenses. outputrelated energy cost. outputrelated raw material costs. . variable interest oosts for borrowed capital. CL." 33'!\" 23. The foregone value associated Withthe current rather than next-best use of a given asset is called: a current cost. b. replacement cost. c. historical cost. (1. opportunity cost. 24. Noncash expenses are: a explicit costs. b. sunk costs. c. incremental oosts. d. implicit costs. 25. Graphically, competitise market supply is measured by the: a vertical difference of competitor demand curves. b. vertical sum of competitor demand curves. c. horizontal difference ofcompetitor MC curves. d. horizontal sum of competitor MC curves. 26. Price and product quality competition tends to be vigorous when: a entry barriers are low. b. potential entrants are few. c. product quality information is scarce. d. the mimber ofactive sellers is few. 27. In both monopolistic competition and oligopol}I markets: a there is easy entry and exit. b. consumers perceive differences among the products of various competitors. c. economic prots may be earned in the long run. (1. there are many sellers. 23. The industry supply curve is derived through the horizontal summation of rm: a average cost curves. b. marginal revenue curves c. marginal cost curves. d. demand curves. 29. Inoligopoly markets, the market demand curve is: a upward sloping. b. downward sloping. c. horizontal d. vertical 30. The level ofcompetition ina given market tends to increase if: a minimum efcient scale of rms increases. b. the mimber of substitutes increase. c. signicant barriers to exit are imposed d. the mimber ofpoterltia! en _ s crease-s