Question
Please check my answers if they are correct or not, if not, please state the correct answer. Thank you! 1- Total Costs / Total Quantity
Please check my answers if they are correct or not, if not, please state the correct answer. Thank you!
1- Total Costs / Total Quantity
A- Average Fixed Costs
B- Average Total Costs
C- Average Variable Costs
D- Average Costs rise when
Answer: B
2- Costs that do change as the firm alters the quantity of output produced. ex: raw materials, labor wages
A- Fixed Costs
B- Variable Costs
C- Implicit Costs
D- Marginal Costs
Answer: B
3- Occurs when long- run Average Total Cost rises as quantity (output) increase. (right graph)
A- Diseconomies of Scale
B- Economics of Scale
C- Fixed Costs
D- Constant Returns to Scale
Answer: A
4- -The lowest part on a ATC graph, point where MC and ATC cross
-The quantity that minimizes average total cost.
A- Efficient Scale/ Firm
B- Diseconomies of Scale
C- Economics of Scale
D- Cost of Production
Answer: A
5- - P = AR= MR
-for P, producers maximize when P = MC
-if P > MC, firm can add profit by producing more
-if P A- Profit area on graph B-Profit-maximizing output C-Perfect competition D- Long run production (P=AC) Answer: B 6- - Some resources used in production may be available only in limited quantities -Firms may have different costs A- What are the conditions for a competitive market? B- What does the short run (fixed firms) supply curve look like? C- Why might the long run supply curve slope upward? D- What is the exit price? Answer: A 7- P > MC A- Monopoly Equilibrium Formula: B- Monopoly Equilibrium Quantity Formula: C- Monopolist Profit Formula: D- Monopoly Characteristics: Answer: C 8- MR can possibly be negative A- If the Price effect is Greater than Output effect: B- Single Price Monopoly Graph: C- Perfect Price Discrimination Graph: D- What is Price Discrimination? Answer: D 9- Lower Price from all units sold = MR < P A- To sell at a Larger Q, Monopoly must: B- When Q is raised, Revenue (MR) either: C- Price Discrimination is defined by: D- Perfect Price Discrimination Graph: Answer: A 10- Consumer Surplus from new products A- Products Firms Sell (MC/PC): B- The Business Stealing externality: C- The Product variety externality: D- Monopolistic Competition and Welfare: Answer: D
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