Question 112pts

An _________________ is calculated by subtracting the firm's costs from its total revenues, _______________________.

Group of answer choices

A. accounting profit; excluding opportunity cost

B. accounting profit; including opportunity cost

C. economic profit; excluding opportunity cost

D. opportunity cost; including economic profit

Flag question: Question 12Question 122pts

A situation where the level of output, scale and average costs are all rising is called

Group of answer choices

A. decreasing returns to scale

B. diseconomies of scale

C. diminishing returns to scale

D. both a and b are correct

Flag question: Question 13Question 132pts

Which of the following should typically be ignored because spending has already been made and cannot be changed?

Group of answer choices

A. variable costs

B. sunk costs

C. marginal costs

D. average marginal costs

Flag question: Question 14Question 142pts

I'MaGadgetCo. produces and sells widgets. Last year, it produced 9,000 widgets and sold each one for $8. To produce the 9,000 widgets, the company incurred variable costs of $27,000 and a total cost of $36,000. I'MaGadgetCo's average fixed cost to produce 9,000 widgets was

Group of answer choices

A. $1.00

B. $3.00

C. $4.00

D. $7.00

Flag question: Question 15Question 152pts

The marginal cost curve is generally ______________, because diminishing marginal returns implies that additional units are ________________________.

Group of answer choices

A. downward-sloping; more costly to produce

B. upward-sloping; more costly to produce

C. downward-sloping; less costly to produce

D. upward-sloping; less costly to produce

Flag question: Question 16Question 162pts

Quantity	Cost (in dollars)	Fixed Costs (in dollars)	Total Costs (in dollars)	Average variable costs (in dollars per unit)	Average variable costs (in dollars per unit)	Marginal costs (in dollars per unit)
0	0	40	40	--	--	--
1	1	40	55	15	55	15
2	35	40	75	17.5	37.5	20
3	60	40	100	20	33.3	25
4	90	40	130	22.5	32.5	30
5	125	40	155	25	31	35
6	160	40	200	26.6	33.3	40

If the firm sells 5 units at a price of $30 each, then the marginal unit produced

Group of answer choices

A. costs more than the average cost.

B. is subtracting from profits.

C. costs the same as the average cost.

D. is adding to profits.

Flag question: Question 17Question 172pts

The term _______________ refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product.

Group of answer choices

A. price setter

B. business entity

C. price taker

D. trend setter

Flag question: Question 18Question 182pts

If the quality differences of similar products are mostly imperceptible to the average consumer's eyes, which of the following will most likely play a major role in influencing the decisions of purchasers?

Group of answer choices

A. price of competing products

B. size of competing products

C. purchaser's opportunity cost

D. geographic origin of products

Flag question: Question 19Question 192pts

For a perfectly competitive firm, the marginal cost curve is identical to the firm's ____________________.

Group of answer choices

A. demand curve

B. supply curve

C. average total cost curve

D. average variable cost curve

Flag question: Question 20Question 202pts

Refer to the diagram above. In this instance, the marginal revenue curve

Group of answer choices

A. reflects a perfectly competitive firm

B. is equal to the price of the good

C. is a horizontal straight line

D. reflects each of the above