Homework Answers
(11) True
Economic profit = Revenue - All explicit costs - All implicit costs
(12) False
Zero economic profit is an indifference point: Firm may decide to shut down or decide to continue.
(13) (C)
In long run, all inputs are variable.
(14) (E)
In short run, firm will shut down if price is less than AVC and will continue producing if price is more than AVC.
NOTE: As HOMEWORKLIB Answering Policy, 1st 4 questions are answered.
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Question 11 Economic profit equals total revenue minus total costs including explicit fixed costs, explicit variable...
Fixed costs are irrelevant in the decision about whether to shut down production in the short...
Fixed costs are irrelevant in the decision about whether to shut down production in the short run because fixed costs: do not affect, and are not affected by, the quantity the firm produces. can be paid off over time. only change when production changes only change in the short run |If a profit-maximizing perfectly competitive firm shuts down in the short run, it incurs no losses. it incurs an economic loss equal to total fixed cost. its profit equals zero....
11. Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus...
11. Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus the explicit cost of producing goods and services. c. total revenue minus the opportunity cost of producing goods and services. d. average revenue minus the average cost of producing the last unit of a good or service.
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average...
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable...
Question 9 6 pts The chart below shows production costs including fixed costs, variable costs, and...
Question 9 6 pts The chart below shows production costs including fixed costs, variable costs, and total costs, marginal costs, avg. variable costs and avg. total costs, for a firm in the short run. Use this chart to answer the following questions. Quantity VC MC AVC FC SO TC 50 ATC 0 1 10 10 SO 2 3 A 100 110 50 20 4 50 130 B 5 С 120 40 34 The "A" in the chart is equal to...
What is economic profit? Economic profit is equal to total revenue minus the opportunity cost of...
What is economic profit? Economic profit is equal to total revenue minus the opportunity cost of production O A. O B. is equal to the return earned on average by an entrepreneur C. is equal to total revenue minus all of the costs of production that are paid either by cash or check O D. can never be a negative amount
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
9:10 + Exit Question 7 2 pts Accounting costs represent explicit costs paid by the firm....
9:10 + Exit Question 7 2 pts Accounting costs represent explicit costs paid by the firm. opportunity costs. both sunk and future costs. long run costs only. Question 8 2 pts Explicit costs are the opportunity costs of all resources used by the firm. the costs associated with the resources that the firm owns. O actual expenditures that a firm must make. all costs associated with the short run. 9:10 + As a firm's production increases in the short run,...
You are given the following cost data: Total fixed costs are $30. q TVC 0 0...
You are given the following cost data: Total fixed costs are $30. q TVC 0 0 1 30 2 60 3 105 4 165 5 255 6 375 If the price of output is $60, how many units of output will this firm produce (assuming the firm produces in the short run, in a competitive market)? The firm will produce nothing units of output because this is where price equals ▼ average variable cost marginal cost average fixed cost ....
Profits will always be maximized when total revenue equals total cost =T or F If marginal...
Profits will always be maximized when total revenue equals total cost =T or F If marginal revenue for an extra unit is positive, then selling the extra unit causes total revenue to rise. T or F Given a downward-sloping demand curve and positive marginal costs, profit-maximizing firms will always sell less output at higher prices than will revenue-maximizing firms. T or F Marginal profit is the difference between marginal revenue and marginal cost, and will always equal zero at the...
For a firm, marginal revenue minus marginal cost is equal to: a) profit b) average total...
For a firm, marginal revenue minus marginal cost is equal to: a) profit b) average total cost c) change in profit d) change in average revenue
Fixed costs are irrelevant in the decision about whether to shut down production in the short run because fixed costs: do not affect, and are not affected by, the quantity the firm produces. can be paid off over time. only change when production changes only change in the short run |If a profit-maximizing perfectly competitive firm shuts down in the short run, it incurs no losses. it incurs an economic loss equal to total fixed cost. its profit equals zero....
11. Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus the explicit cost of producing goods and services. c. total revenue minus the opportunity cost of producing goods and services. d. average revenue minus the average cost of producing the last unit of a good or service.
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable...
Question 9 6 pts The chart below shows production costs including fixed costs, variable costs, and total costs, marginal costs, avg. variable costs and avg. total costs, for a firm in the short run. Use this chart to answer the following questions. Quantity VC MC AVC FC SO TC 50 ATC 0 1 10 10 SO 2 3 A 100 110 50 20 4 50 130 B 5 С 120 40 34 The "A" in the chart is equal to...
What is economic profit? Economic profit is equal to total revenue minus the opportunity cost of production O A. O B. is equal to the return earned on average by an entrepreneur C. is equal to total revenue minus all of the costs of production that are paid either by cash or check O D. can never be a negative amount
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
9:10 + Exit Question 7 2 pts Accounting costs represent explicit costs paid by the firm. opportunity costs. both sunk and future costs. long run costs only. Question 8 2 pts Explicit costs are the opportunity costs of all resources used by the firm. the costs associated with the resources that the firm owns. O actual expenditures that a firm must make. all costs associated with the short run. 9:10 + As a firm's production increases in the short run,...
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