Choose the correct answer. And solve the following

Question 1 Which of the following is a market structure characterized by many firms selling similar but differentiated products? O Oligopoly O Monopoly O Monopolistic Competition O Perfect Competition Question 2 Which of the following is a market structure characterized by one firm selling a unique product with no close substitutes? O Perfect Competition O Monopoly O Monopolistic Competition O Oligopoly Question 3 Which of the following is a market structure characterized by many firms selling identical products? O Monopolistic Competition O Oligopoly O Monopoly O Perfect CompetitionQuestion 4 Which of the following is a market structure characterized by few rms selling similar or identical products? 0 Monopoly O Monopolistic Competition 0 Perfect Competition 0 Oligopoly Question 5 Which is the appropriate equation for economic prot? 0 Total Revenue - Explicit Costs 0 Total Revenue - Explicit Costs - Implicit Costs 0 Explicit Costs + Implicit Costs 0 Total Revenue - Implicit Costs Question 6 Which of the following is NOT an example of an implicit cost? 0 Wages a rm pays to its employees 0 The rent a rm could be charging for a facility that is being used for operations 0 The opportunity cost of the owner's time Q The foregone interest that would have been earned on funds that were invested in a rm Question 7 The marginal cost curve is generally upward-sloping because __ O diminishing marginal returns implies that additional units are more costly to produce. 0 the costs of materials increase per unit as you buy larger quanties. 0 since a rm will hire cheaper labor rst, to produce more output you must spend more to hire more skilled labor 0 consumers will only buy goods of high quality. Question 8 The price of a good minus the average total cost is typically known as the _ 0 Prot margin or average prot 0 Average variable cost 0 Average xed cost 0 Economies of Scale Question 9 What term describes the long run cost situation where the quantity of output rises, but the average cost of production falls? 0 Increasing Marginal Costs 0 Diseconomies of Scale 0 Economies of Scale 0 Diminishing Marginal Returns Question 10 What term describes the long run cost situation where the quantity of output rises, but the average cost stays the same? 0 Perfectly inelastic O Constant Returns to Scale 0 Constant opportunity cost 0 Diseconomies of Scale Question 1 6 pts Frank is an engineer who had decided to leave his job making $150,000 per year to brew and sell craft beer. He spends $30,000 per year on ingredients and $20,000 per year to rent a space to brew. His sales revenue from selling his beer is $150,000 per year. (a) Assuming this information is complete and correct, calculate Frank's Accounting Prot. $ |:| (Please enter your answer without the dollar sign) (b) Assuming this information is complete and correct, calculate the Frank's Economic Prot. $ |:| (Please enter your answer without the dollar sign) Question 2 8 pts Jay has opened a pizza restaurant. For this restaurant there are only two inputs, rent, and workers. The space is leased at $200 per day. Each worker costs $100 per day. (a) Complete the table below: Labor Quantity 0 O 1 10 l l 3 45 l l 5 70 l l ENTER YOUR ANSWERS WITHOUT DOLLAR SIGNS. PLEASE ROUND TO THE NEAREST CENT. IF YOUR ANSWER IS A WHOLE DOLLAR, DO NOT INCLUDE A DECI MAL WITH ZERO CENTS ATTACHED (Ex. if your answer is $3.333333, enter 3.33, if your answer is $25.00 just enter 25) Fixed Costs Variable Costs Total Costs U H U Question 3 (b) Is this production schedule consistent with diminishing marginal returns? How can you tell? (c) What law that we learned in this chapter leads to the conclusion that a rm's short run marginal cost curve will eventually increase. (cl) Does this table show Jay's short run or long run costs? How can you tell