21-Economic profit is equal to

(i) total revenue - (explicit costs + implicit costs).

(ii) total revenue - opportunity costs.

(iii) accounting profit + implicit costs.

1. (i) only
2. (i) and (ii)
3. (ii) and (iii).
4. All of the above are correct

22- Accounting profit is equal to

(i) total revenue - implicit costs.

(ii) total revenue - opportunity costs.

(iii) economic profit + implicit costs.

23- Average total cost is equal to

1. output/total cost.
2. total cost - total quantity of output.
3. average variable cost + total fixed cost.
4. total cost/output.

24- The amount by which total cost rises when the firm produces one additional unit of output is called

1. average cost.
2. marginal cost.
3. fixed cost.
4. variable cost.

25- Variable cost divided by quantity produced is

1-average total cost.

2-marginal cost.

3-profit.

4-None of the above are correct.

26-Marginal cost equals

(i) change in total cost divided by change in quantity produced.

(ii) change in variable cost divided by change in quantity produced.

(iii) the average fixed cost of the current unit.

IV-All of the above are correct

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

1. equal to marginal revenue.
2. equal to total revenue.
3. greater than average revenue.
4. All of the above are correct.

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

1. Firms are price takers.
2. Firms have difficulty entering the market.
3. There are many sellers in the market.
4. Goods offered for sale are largely the same.

29- Assume a firm is producing 800 units of output, and it sells each unit for $6. Its average total cost is $4.

Its profit is

a. $-1,600.

b. $1,600.

c. $3,200.

d. $8,000.

30-In a competitive market, no single producer can influence the market price because

1. many other sellers are offering a product that is essentially identical.
2. consumers have more influence over the market price than producers do.
3. government intervention prevents firms from influencing price.
4. producers agree not to change the price