9 of25

In Perfect Competition, in the long run

	All firms are making profits
	No firms are making profits
	Economic profit = 0
	Accounting profit = 0

Question

10 of25

The formula for marginal cost is: ____________ .

	TC/ Q
	AC/ Q
	C / Q
	C / Q

Question

11 of25

Economic profit equals

	Total Revenue minus (explicit cost plus the implicit cost )
	Total revenue minus implicit costs.
	Total revenue minus explicit costs.
	Implicit costs plus explicit costs.

Question

12 of25

Average Cost is _______________ whereas Marginal Cost is _____.

	fixed; variable
	total cost divided by quantity; the increase in cost from producing one more unit
	avoidable; unavoidable
	constant; increasing

Question

13 of25

Economic profit is the difference between________ and ______.

	total revenue; explicit costs
	total revenue; implicit costs
	total revenue; total costs
	profit; total costs

Question

14 of25

In Perfect Competition, when MR > MC, the firm_____________.

	is maximizing profits
	should produce more
	should produce less
	is maximizing revenue

Question

15 of25

Accounting profit can be derived from calculating total revenue minus

	explicit costs.
	explicit and implicit costs.
	marginal revenue.
	implicit costs.

Question

16 of25

If the marginal product is greater than the average product, we expect that

	average product will rise.
	average product will fall.
	average product is at its minimum.
	average product is at its maximum.

Question

17 of25

Explicit costs are ______ costs, while implicit costs are _______________ costs.

	out-of-pocket; opportunity
	dollar; accounting
	non-monetary; monetary
	accounting; economic