Fundamentals of Economics

FALL SEMESTER 2021

homework #5-6, CHAPTERS 13, 14, 18, 19, 20-22

Multiple Choice

2. Observing the total cost curve, increasing output and moving along the curve where quantity of output continues to lower average total costs is best describing

a. marginal costs

b. marginal revenue

c. efficient scale

d. diseconomies of scale

3. For a firm in a competitive market, if total revenue is less than variable costs

a. the firm should shut down

b. the firm should exit business

c. the firm should increase its output

d. the firm should decrease its output