Multiple choice - select the correct answer and answer if it is true or false.

1- The variable costs of a company are represented by all those costs that change as different levels of production of a company are generated.

false

true

2- The equation PT / L defines the marginal production.

false

true

3- The fixed cost of a company corresponds to the payment of rent, loans and payroll that is incurred as a result of the production process.

False

True

4- The result of the increase in total production divided by the growth in the number of workers is the average production.

False

True

5- The marginal production of a company is the change in total production divided by the change in the number of workers.

False

True

6- By dividing the total costs by the production, the total average costs are found.

False

True

7- When we talk about CMg we refer to the cost per unit added, that is, it is the cost that corresponds to producing each new unit.

False

True

8- When we talk about the IMg we refer to the income generated from all the units produced.

False

True

9- By dividing the variable costs by the production, the total average costs are found.

False

True

10- When the desired goods and services are produced in the optimal production mix, it is known as allocative efficiency.

False

True

11- Economic benefit is the subtraction from total income less explicit costs and implicit costs.

False

True

12- When the desired goods and services are produced in the least expensive way, it is known as allocative efficiency.

False

True

13- Marginal revenue is constant in perfect competition because additional units can be sold at the same price.

False

True

14- Due to standardization, there is reason for there to exist independent price competition, that is, competition based on differences in product quality, advertising or sales promotion in the perfect competition market.

False

True

15- Economic efficiency is when we have allocative efficiency plus productive efficiency.

False

True

16- In monopolistic competition, each company generates a fraction of the total production so small that increasing or decreasing its production will have a perceptible influence on the total supply and the price of the product.

False

True

17- The IMg = CMg rule is an accurate guide to minimize loss for all types of companies.

False

True

18- Marginal revenue is not constant in monopolistic competition because additional units of the same price can be sold.

False

True

19- In monopoly, there are significant legal, technological, financial or other obstacles that prohibit the entry of new companies.

False

True

20- In monopolistic competition there are no significant legal, technological, financial or other obstacles that prohibit the entry of new companies.

False

True

21- A competitive competition will maximize profits or minimize losses in the short term, generating production in which IMg = P = CMg given that the price exceeds the minimum variable average cost.

False

True

22- Losses are minimized when the total cost with respect to the total income is lower and corresponds to a certain amount lower than the total fixed costs.

False

True

23- When the demand for resources in a particular industry is a negligible component of total demand, the industry can expand or contract without significantly affecting resource prices and costs.

False

True

24- In the perfect competition market, if a single producer increases or decreases production while the other competitive companies remain constant, the effect on the total supply and on the market price is significant.

False

True

25- A favorable shift will considerably modify the original equilibrium, without generating economic benefits. However, this will cause new companies to enter the industry, increasing the supply and decreasing the price of the product until the economic benefits, once again, reach zero.

False

True