Question 15 (1 point)

A manufacturer of inflatable dart boards is producing 500 units per day. Its total variable cost is $9500 per day and its short-run average total cost is $33. Its average fixed cost is:

Question 15 options:

	$13
	$14
	$15
	$12

Question 16 (1 point)

Consider the following statements when answering this question;

I. A firm's marginal cost curve does not depend on the level of fixed costs.

II. As output increases the difference between a firm's average total cost and average variable cost curves cannot rise.

Question 16 options:

	I is false, and II is true.
	I and II are both false.
	I is true, and II is false.
	I and II are both true.

Question 17 (1 point)

It benefits people to specialize and trade with each other because

Question 17 options:

	with specialization and trade people can consume outside of their production possibilities frontier.
	with specialization and trade, the strong can exploit the weak.
	specialization and trade lead to a linear production possibilities frontier.
	they can take advantage of the fact they have an absolute advantage in the production of something.

Question 18 (1 point)

Agricultural products, local utilities, the soft drink industry, and personal computer assembly and sales firms are generally considered

Question 18 options:

	Perfectly competitive, monopolistic, oligopolistic, and monopolistically competitive, respectively
	Perfectly competitive, monopolistic, monopolistically competitive, and oligopolistic, respectively.
	Perfectly competitive, monopolistically competitive, monopolistic and oligopolistic, respectively
	Perfectly competitive, oligopolistic, monopolistic, and monopolistically competitive, respectively.

Question 19 (1 point)

Which would be an implicit cost for a firm? The cost:

Question 19 options:

	of worker wages and salaries for the firm.
	paid for leasing a building for the firm.
	of wages foregone by the owner of the firm.
	paid for production supplies for the firm.

Question 20 (1 point)

An industry in which one firm can supply the entire market at a lower price than two or more firms can is called a

Question 20 options:

	natural monopoly
	legal monopoly
	price-discriminating monopoly
	single-price monopoly

Question 21 (1 point)

Which of the following would create a natural monopoly?

Question 21 options:

	technology enabling a single firm to produce at a lower average cost than two or more firms
	ownership of all the available units of a necessary input
	an exclusive right granted to supply a good or service
	requirement of a government license before the firm can sell the good or service