What is the term for the price at which the firm makes only normal profits?

Question 17 options:

Economic price

Shutdown price

Average price

Break-even price

All of the following, except one, are reasons why the stock market is not a good example of a perfectly competitive market. Which is the exception?

Question 18 options:

The action of a single buyer or seller is able to affect the price of stocks

You need to be rich in order to buy stocks

There is not easy entry since a commission must be paid to a broker in order to trade

Not all traders have equal access to information

What is the term for the profit per unit produced; that is, the total profit divided by output?

Question 19 options:

Economic profit

Normal profit

Marginal profit

Average profit

What is the term for the level of output at which the sales revenue of the firm just covers the fixed and variable costs including normal profits?

Question 20 options:

Average output

Break-even output

Explicit output

Capacity output

If it can control its output but not its price, then it is an example of

Question 22 options:

Perfect competition

Differentiated oligopoly

Undifferentiated oligopoly

Monopoly

Monopolistic competition

Girvan Sports Manufacturers can produce 22 surfboards a day for a total cost of $1,250. If the total cost increases to $3,750 and technology and input prices remain the same, then what must be the new quantity of output per day under the conditions of constant returns to scale?

Question 23 options:

44

66

More than 32 but less than 66

More than 66

Consider the following table for Kent Global Manufacturers.

Price Output Total Revenue Total Cost Profit (+) or Loss (-)

$30 0 $ 0 $450 - $450

50 4 200 550 - 350

70 6 420 680 - 260

90 8 720 720 0

110 9 990 840 + 150

What is the total amount of the shutdown loss? In other words, what loss will Kent Global incur if it does not produce at all?

Question 24 options:

$0

$30

$450

$110

A jacket manufacturer sold 50 jackets last week and received total revenue of $2,000. This week, she sold 55 jackets for a total revenue of $2,200. Her average revenue of jackets is $40. What is her marginal revenue of jackets?

Question 25 options:

$50

$2,200

$40

$2,000

If your business earns accounting profits of $70,000 and economic profits of $30,000, your hidden opportunity costs are

Question 26 options:

$30,000

$70,000

$60,000

$40,000

If you use your own money to start up a business, the interest you could have earned is

Question 27 options:

Subtracted from profits to determine accounting profits

An implicit cost

Included in the calculation of accounting profits

An obvious cost