Question 35 of 45 1 Points What is the firm's efficient scale? O A. the quantity of output that minimizes average variable cost O B. the quantity of output that minimizes average fixed cost O C. the quantity of output that minimizes marginal cost O D. the quantity of output that minimizes average total cost Reset SelectionQuestion 36 of 45 1 Points Which statement explains the relationship between average revenue, marginal revenue, and price in a competitive market? O A. Average revenue, marginal revenue, and the price of the good are all equal to one another. 0 B. Average revenue equals the price of the good, but marginal revenue is different. 0 C. Marginal revenue equals the price of the good, but average revenue is different. O D. Average revenue equals marginal revenue, but the price of the good is different. Reset Selection Question 37 of 45 1 Points In a market that allows free entry and exit, when does the process of entry and exit end for the typical firm in the market? O A. when economic profit is zero 0 B. when average revenue exceeds marginal cost 0 C. when total revenue is equal to average total cost O D. when accounting profit is zero Reset Selection Question 38 of 45 1 Points What does marginal cost tell us? O A. the amount by which output rises when labour is increased by one unit 0 B. the value of all resources used in a production process 0 C. the additional profit earned when output is increased by one unit O D. the amount by which total cost rises when output is increased by one unit Reset Selection Question 39 of 45 1 Points A prot-maximizing firm in a competitive market produces small rubber balls. When the market price for small rubber balls falls below the minimum of its average total cost but still lies above the minimum of average variable cost, what happens to the rm? 0 A. It will experience losses, but it will continue to produce rubber balls. 0 B. It will shut down. 0 C. It will be earning only accounting profits. 0 D. It will be earning both economic and accounting prots. Reset Selection Question 40 of 45 1 Points For any given price, a firm in a competitive market will maximize profit by selecting the level of output where price intersects which curve? O A. marginal-revenue curve C) B. average-totaI-cost curve O C. average-variable-cost curve 0 D. marginal-cost curve Reset Selection Question 41 of 45 1 Points Where is the competitive rm's short-run supply curve located? 0 A. the part of the average-variable-cost curve that lies above marginal cost 0 B. the part of the average-total-cost curve that lies above marginal cost 0 C. the part of the marginal-cost curve that lies above average total cost 0 D. the part of the marginal-cost curve that lies above average variable cost Reset Selection Question 42 of 45 1 Points What is one consideration that applies to the analysis of a market over the long run but not to the analysis over the short run? O A. changes in firms' profits 0 B. changes in the numbers of rms in the market O C. changes in firms' cost structures 0 D. changes in the price ofthe product Reset Selection Question 43 of 45 1 Points What will entry into a market by new firms do? O A. It will increase profits of existing firms O B. It will increase the costs of existing firms O C. It will increase the price of the good O D. It will increase the supply of the good. Reset SelectionQuestion 44 of 45 1 Points What distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing rm? 0 A. In the short run the size of the factory is xed 0 B. In the short run the number of workers used to produce the firm's product is fixed. O C. In the short run there are no fixed costs 0 D. In the short run output is not variable. Reset Selection