please help me answer the following

Multiple Choice

1.The MC curve must be*--*

a.falling when the ATC curve lies below the marginal curve

b.less than AFC when the average cost is rising

c.rising when TC is rising.

d.greater than ATC when the average curve is rising.-

2.The fixed costs of a firm are costs that stay the same regardless of*

a.whether the firm is in the short-run or the long-run.

b.the price of the fixed input.

c.the amount of the fixed input employed.

d.the amount of output produced.-

3.The socially optimal price (P = MC) is socially optimal because*

a.it reduces the monopolist's profit.

b.it yields a normal profit.

c.it minimizes ATC.

d.it achieves allocative efficiency.

4.In the short run, TVC*

a.Option 2

b.decreases when the firm is experiencing increasing returns

c.decreases when the firm is experiencing diminishing returns.

d.is positive when output is zero.

5.In the long run, average total cost exhibits a pattern just like the short run average total cost because of this reason.*

a.Economies and diseconomies of scale are experienced as a firm gets bigger in size.

b.Increasing and decreasing returns are associated with more outputs produced.

c.None of the above explains the shape of a long run average total cost curve

d.Law of diminishing returns starts to set in.

6.Monopoly and pure competition*

a.both offer differentiated products

b.differ in terms of the number of firms in the industry.

c.are alike in that entry is blocked in both.

d.are alike in that entry is easy in both.

7.The slope of total curves/functions (e.g., TP, TC, TR) is*

a.their marginal values.

b.their average values.

c.none of the above

d.the shape of the curve/function

8.If the marginal value of some variables is above the average value of the variable;*

a.the marginal value must be falling

b.the marginal value must be rising.

c.the average value must be constant

d.the average value must be rising.

9.Diminishing returns*

a.eventually occur in all short-run production situations.

b.characterize all stages of production

c.are always associated with declining average product in the short-run

d.exist in the short run, because as additional units of an input are hired, output will decrease

10.Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt's economic profit?*

a.$460,000

b.-$40,00

c.$10,000

d.Option 4

11.A firm will shut down in the short-run whenever*

a. price is less than AVC.

b. MR is equal to MC.

c. price is less than AFC.

d. price is less than ATC.

12.The production function tells the firm*

a. the maximum output that can be produced from a given amount of inputs.-

b.which input combination has the lowest total cost.

c.which input combination produces a given output at the lowest possible cost.

d.which output is the most profitable.

13.If the average output per worker in a firm is 7 units per hour, then the average output will rise as a result of hiring another worker if*

a. the marginal worker produces 7 units.

b.the last worker produced less than 7 units.

c.Option 3

d.more workers are hired.

14.When the firm generates sales that is enough to cover its costs the firm is experiencing*

a.losses.

b.break-even

c.zero profit.

d.both A and C above-

15.When the MP is rising*

a.the MC must be falling.-

b.the MC is rising.

c.MP is equal to AP.

d.MC is minimum.

16.The law of diminishing marginal returns says that as units of labor are added to the production of an output when all other inputs are fixed, eventually*

a.marginal product declines

b.total cost rises.

c.marginal costs decline.

d.total product is always declining

17.Which of the following statements is correct about a purely competitive firm?*

a. It will produce in the short run, so long as total receipts are sufficient to cover its TFC.

b. To maximize profits in the short run, it should produce at the level where MC is equal to price.

c. It will always close down in the short run, whenever price is less than ATC.

d.In the long-run, firms incur costs that are fixed and variable.

18.Suppose that the market for computers is dominated by a single firm, like IBM, that is able to exert influence overprices and output. This a situation violates the perfect competition assumption of*

a. identical or homogeneous goods.

b. ease of entry and exit.

c. many buyers and sellers.

d. no differentiation.

19.Which of the following is most likely to be an implicit cost?*

a. interest payments on an outstanding loan of the firm

b. salaries paid to the firm's board of directors

c. rental income foregone on assets owned by the firm-111

d. transportation cost on raw materials

20.In the short-run, the basic relationship between an individual firm's supply curve under perfect competition and the market supply curve under perfect competition is*

a. the individual firm's supply curve is horizontal, but the market supply curve is upward sloping-

b. the individual firm's supply curve is vertical, but the market supply curve is upward sloping

c. the market supply curve is equal to the average of all the individual firm's supply curves

d. the market supply curve is the summation of all the individual's firms' supply curves

21.A negative MP*

a. is associated with a negative AP.

b. indicates that TP is increasing at a decreasing rate

c. may be consistent with rising or falling TP

id. s consistent with a falling TP-

22.This characteristic of oligopoly implies that there is interdependence among firms that leads to conflictingmotives, that leads them to act and react on the price movements of one another.*

a. lack of uniformity

b. competition

c. interdependence

d. no unique patter of pricing behavior

23.An oligopoly is characterized by*

a. free entry and blocked exit.

b. few number of firms and blocked entry.

c. firms selling identical products but differentiated.

d. firms that sell homogeneous product but differentiated.

24.With respect to entry and exit, monopolistic competition is*

a. characterized by free entry and blocked exit.

b. characterized by easy (though not free) entry and exit.

c. like pure monopoly in that entry is blocked

d. like pure competition in that entry and exit are free.-

25.Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt's opportunity costs comprise*

a. none of the above

b. the accounting costs

c. all economic costs

d. the accounting costs and the implicit costs.

26.The feature that distinguishes short-run from the long-run is the*

a. length of time it takes to produce 1 unit.

b. existence of fixed costs.

c. the amount of profit the firm can expect to earn.

d.amount of variable resources used to produce 1 unit

27.The marginal cost curve crosses the*--*

a. total cost curve at the minimum of the total cost curve.

b. average fixed cost curve at the minimum of the average fixed cost curve.

c. average variable cost curve at the minimum of the average variable cost curve.

d. average total cost curve at the maximum of the average total cost curve.

28.Economic profit is frequently*

a. defined as total revenue minus total fixed cost.

b. irrelevant to the owner of a firm who is concerned instead with accounting profits.

c. less than accounting profit.

d. greater than total revenue

29.The average variable cost curve and average total cost curve tend to converge as output rises because*

a. the marginal cost curve intersects the average total cost curve at its minimum.

b. output is rising more rapidly than inputs are being increased.

c. the difference between them (average fixed cost) declines.

d. the average fixed costs are constant as output rises.

30.The main problem with imposing the socially optimal price (P = MC) on a monopoly is that the socially optimal price:*

a. may cause the regulated monopoly to engage in price discrimination.

b. may be so low that the regulated monopoly can't break even.

c. none of the above

d. may be higher than the monopoly price

31.If it is possible for a perfectly competitive firm to do better financially by producing rather than shutting down,then it should produce the amount of output at which:*

a. MR = MC-

b. MR > MC

c. none of the above

d. MR < MC

32.Suppose that a monopolist can segregate his buyers into two different groups to which he can charge two different prices. In order to maximize profit, the monopolist should charge a higher price to the group that has:*

a. the lower elasticity of demand.

b. richer members.

c. the higher elasticity of demand.

d. none of the above

33.In the short-run, when output is zero*

a. TFC is zero.

b. AFC is zero.

c. TVC is zero.

d. TC is zero.

34.A competitor maximizes profit by producing the output that*

a. equates TR and TC.

b. maximizes the difference between MR and MC.

c. equates price and average variable cost.

d. equates MR and MC

35.Total product curve in the first stage of production shows that it is increasing at an increasing rate because*

a. the marginal product is zero.

b. the marginal product is positive and decreasing.

c. the marginal product is negative.

d. the marginal product is positive and increasing.

36.Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. The implicit cost/s that your aunt can incur is/are:*

a. foregone rental value and foregone wages

b. foregone wages.

c. foregone rental value, foregone interest income, foregone wages

d. foregone interest income and foregone wages

37.City hotels and restaurants are illustrative of*

a.monopoly

b. monopolistic competition.

c. pure competition

d. oligopoly.

38.Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt's accounting profit?*

a. -$40,00

b. $10,000

c. $0

d. $460,000

39.The short-run is*

a. when a firm is unable to change its price.

b. when a firm is unable to change output.

c. when a firm is unable to change some of its inputs.-

d. less than a year

40.In the short run*

a. there may be fixed and variable inputs-

b. all costs are variable.

c. all production decisions must be made on a daily basis

d. all inputs are fixed.

41.Economies of scale means that*

a. as output increases, the cost per unit of output decreases.

b. as output increases, the cost per unit of output increases.

c. production is efficient because it is cheaper to produce as firm expands.

d. as output increases, the cost of producing that output decreases.

42.From an economics perspective, accounting methods tend to*

a. understate profits and overstate losses.

b. overstate profits and losses

c. overstate profits and understate losses.

d. understate profits and losses

43.Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. What is your aunt's opportunity cost (in value) of running a hardware store for a year?*

a. $50,000

b. $500,000

c. $550,000

d. cannot be determined

44.Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. If your aunt thought she could sell $510,000 worth of merchandise in a year, should your aunt open the store?*

a. No, since the economic profit is negative; there are more values for

b. Yes, implicit costs are covered by the accounting profit.

c. None of the above

d. Yes, since its economic profit is more than cover all opportunity cost

45.The actions of a firm in a purely competitive industry have no effect on market price; therefore, the demand curve faced by the firm is*

a. a downward-sloping curve.

b. a horizontal line at the level of the market price.-

c. a firm's total revenue curve

d. unknown.