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The added revenue that a firm takes in when it increases output by one additional unit is
________ revenue.
A) total B) marginal C) variable D) fixed
Profit‐maximizing firms want to maximize the difference between ________ revenue and
________ cost.
A) total; marginal B) total; total
C) marginal; marginal D) marginal; average
If a firmʹs demand curve is perfectly elastic, then at the profit maximizing level of output
A) P > MR > MC. B) P = MR = MC.
C) P < MR < MC. D) P > 0 and MR = 0.
Joeʹs Butcher Shop is producing where MR = MC, Joeʹs Butcher Shop must be
A) earning a zero economic profit.
B) incurring a loss.
C) maximizing profits.
D) maximizing revenue but not maximizing profits.
The profit‐maximizing level for all firms, regardless of industry structure, is the output level
where
A) TR = MC. B) P = MC. C) ATC = P. D) MC = MR.
Economic profit is
A) TR - TC. B) TR - TFC. C) TR - TVC. D) TVC - TFC.
Economic profit is
A) (P ‐ ATC)q. B) (P + ATC)q. C) P(q ‐ ATC). D) Pq/ATC
A firm is better off operating than shutting down when price adequately covers
A) marginal cost. B) average fixed cost.
C) average variable cost. D) marginal revenue.
A firm suffering economic losses decides whether or not to produce in the short run on the basis
of whether
A) revenues cover variable costs.
B) revenues from operating are sufficient to cover fixed costs.
C) revenues from operating are sufficient to cover fixed plus variable costs.
D) Firms suffering economic losses will always shut down.
A firm will choose to operate rather than shut down as long as
A) price is greater than or equal to AFC. B) AFC is greater than AVC.
C) price is greater than or equal to AVC. D) AVC is greater than MC.
If a firmʹs economic profit is $0, then
A) TR equals TC. B) TR equals TVC.
C) TR equals TFC. D) TFC is zero
If TR > TVC but TR < TC, a firm would ________ in the short run and ________ in the long run.
A) operate; expand B) operate; exit the industry
C) shut down; expand D) shutdown; exit the industry
If TR < TVC, a firm would ________ in the short run and ________ in the long run.
A) operate; expand B) operate; exit the industry
C) not operate; expand D) shut down; exit the industry
The best explanation for the shape of a short‐run marginal cost schedule is
A) increasing returns to scale.
B) decreasing returns to scale.
C) the lack of a fixed factor of production.
D) a fixed factor causes diminishing returns to other factors.
Refer to the information provided in Figure 13.7 below to answer the questions that follow.
Refer to Figure The Memory Companyʹs profit‐maximizing level of output is ________
high school yearbooks.
A) 0 B) 200 C) 300 D) 350
Refer to Figure 13.7. The profit‐maximizing price for the Memory Companyʹs high school
yearbook is
A) $0. B) $9. C) $16. D) $20.
Refer to the information provided below in Scenario 9.5 to answer the following questions.
SCENARIO 9.5: Investors put up $1,040,000 to construct a building and purchase all equipment
for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their
investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed
costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10%
return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly
wages, and $600 per week in materials, electricity, etc. The restaurant charges $6 on average per
meal.
Refer to Scenario 9.5. In the long run, the restaurant will want to
A) operate and expand. B) operate but not expand.
C) shut down but donʹt go out of business. D) go out of business.
Refer to Scenario 9.5. In the short run, if the restaurant shuts down, it will ________ variable
costs and ________ revenue.
A) have; receive B) have; receive no
C) have no; receive D) have no; receive no
Refer to Scenario 9.5. In the short run, if the restaurant shuts down, its losses will equal its
________ costs of ________.
A) variable; $2,600 B) total; $6,600
C) fixed; $4,000 D) fixed; $2,000
№377. Компанія “Green Logistics” хоче максимізувати свої прибутки. Вона має
дотримуватися такого правила виробництва:
1) граничний виторг дорівнює середнім загальним витратам;
2) граничні витрати зростають;
3) граничні витрати дорівнюють середнім загальним витратам;
4) граничні витрати дорівнюють граничному виторгу.
№384. Фірма виробляє за рік 10 одиниць товару і продає їх за ціною 30 грн. Явні витрати
фірми становлять 150 грн., а неявні витрати – 70 грн. Бухгалтерський прибуток фірми
становитиме:
1) 300 грн.;
2) 150 грн.;
3) 80 грн.;
4) 230 грн.