Question 1

-The graph above illustrates the total cost function for GoodieCookie Co. The changing slope of the total cost curve reflects this company's

Accepted Answer

A)   decreasing average total costs.
B)   decreasing marginal costs.
C)   decreasing average variable costs.
D)   decreasing fixed costs.

Question 2

When __________________ exist, doubling of all inputs will result in more than doubling output, which means __________________________________________.

Accepted Answer

A)   economies of scale; a larger factory can produce at a lower average cost than a smaller company.
B)   economies of scale; a smaller factory can produce at a lower average cost than a larger company.
C)   low labor inputs; larger scale of production leads to higher costs.
D)   labor inputs; economies-of-scale curve is U-shaped.

Question 3

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

Accepted Answer

A)   marginal costs
B)   average costs
C)   total revenue
D)   variable costs

Question 4

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

Accepted Answer

A)   monopoly
B)   economies of scale
C)   diminishing returns
D)   diseconomies of scale

Question 5

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

Accepted Answer

A)   its' fixed costs
B)   the quantity of output
C)   its' average costs
D)   diminishing marginal costs

Question 6

Refer to the table below.

If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal?

Accepted Answer

A)   losses equal $5
B)   profits equal $5
C)   profits equal $25
D)   losses equal $25

Question 7

-The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.

Accepted Answer

A)   in the short-run, the demand curve and average revenue shift as other firms enter the market and increase competition
B)   in the short-run, the demand curve and average revenue shift as other firms leave the market and decrease competition
C)   in the long-run, the demand curve and average revenue shift as other firms enter the market and increase competition
D)   in the long-run, the demand curve and average revenue shift as other firms leave the market and decrease competition

Exam 7: Cost and Industry Structure

When exist, doubling of all inputs will result in more than doubling output, which means ________________________.

Correct Answer
verified

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

Correct Answer
verified

Refer to the table below. If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal?

Correct Answer
verified

-The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.

Correct Answer
verified

-The graph above illustrates the total cost function for GoodieCookie Co. The changing slope of the total cost curve reflects this company's

Correct Answer
verified

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

Correct Answer
verified

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

Correct Answer
verified

Exam 7: Cost and Industry Structure

When __________________ exist, doubling of all inputs will result in more than doubling output, which means __________________________________________.

Correct AnswerverifiedShow Answer

In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.

Correct AnswerverifiedShow Answer

Refer to the table below. If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal?

Correct AnswerverifiedShow Answer

-The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.

Correct AnswerverifiedShow Answer

-The graph above illustrates the total cost function for GoodieCookie Co. The changing slope of the total cost curve reflects this company's

Correct AnswerverifiedShow Answer

In order to determine the average variable cost, the firm's variable costs are divided by _______________________.

Correct AnswerverifiedShow Answer

Whatever the firm's quantity of production, _____________ must exceed total costs if it is to earn a profit.

Correct AnswerverifiedShow Answer

When exist, doubling of all inputs will result in more than doubling output, which means ________________________.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified