multiple choice

QUESTION 34 The amount by which an additional unit of an activity increases total cost is: net benefit. marginal benefit. negative benefit. marginal cost. QUESTION 35 Whenever marginal benefit is less than marginal cost, the decision maker should do of the activity. less that exact amount more none QUESTION 36 A firm finds that its long-run average total costs increase as it produces more output. This firm is experiencing: economies of scale. constant returns to scale. diseconomies of scale. O a spreading effect. QUESTION 37 A planning period during which all of a firm's resources are variable is the: O long run. O fixed run. short run. nominal run.QUESTION 38 Diminishing marginal returns means that: A each additional unit of an input used will decrease output. A each additional unit of an input used will increase output, but by smaller and smaller amounts. A each additional unit of an input used will increase output by larger and larger amounts. A the rm is maximizing prot. QUESTION 39 A curve that shows the quantity ofa good or service supplied at various prices after all long-run adjustments to a price change have been completed is a long-run: A marginal revenue curve. A marginal cost curve, A industry supply curve. A production curve. QUESTION 40 A decrease in production costs for rms in a perfectly competitive market will cause am): A permanent increase in the price. A economic prot for rms in the short run. A increase in demand. A increase in rms' marginal revenue. QUESTION 41 A firm produces at the output level at which its average total costs are minimized. At this output level, its average total costs are equal to all of the following except: A price, 0 MC. 0 MR. A AVC. QUESTION 33 Which of the following is true of the well-being of a consumer as represented by a demand curve? 0 A. The consumer's well-being remains constant along a demand curve only in case ofan inferior good. 0 B. The consumer's well-being decreases with a rightward shift of the demand curve. 0 C. The consumer's well-being varies along a demand curve. C D.The consumer's well-being is very low when the demand curve is parallel to the price axis