Which of the following describe(s) a firm’s profits? Select all that apply.
8. Question 8 Which of the following describe(s) a firm’s profits? Select all that apply. 1 point Quantity times the difference between price and the average total cost …
If a firm is facing an exogenously given price, P0, and has found its profit maximizing output point, an increase in fixed cost will not change this profit maximizing output level for the firm in the short run.
7. Question 7 If a firm is facing an exogenously given price, P0, and has found its profit maximizing output point, an increase in fixed cost will not change this…
A firm will shutdown in the short run if its revenues fail to cover its:
1. Question 1 A firm will shutdown in the short run if its revenues fail to cover its: 1 point Sunk costs Variable costs Marginal costs …
If a firm organized as a corporation is making long run decisions, which of the following is true?
15. Question 15 If a firm organized as a corporation is making long run decisions, which of the following is true? 1 point ATC = AVC and AFC…
The law of diminishing product begins at the level of output where:
7. Question 7 The law of diminishing product begins at the level of output where: 1 point None of the other options are correct. Average fixed cost is…
Which of the following short-run cost curves decreases continuously?
5. Question 5 Which of the following short-run cost curves decreases continuously? 1 point Average total cost Average variable cost Average fixed cost Marginal cost …
For our course, the symbol π represents economic profit. Accounting profit is denoted by the symbol πAccy. Which of the following is true?
4. Question 4 For our course, the symbol π represents economic profit. Accounting profit is denoted by the symbol πAccy. Which of the following is true? 1 point π…
Which of the following is not a reason for the U-shape of ATC curve?
13. Question 13 Which of the following is not a reason for the U-shape of ATC curve? 1 point AFC declines continuously Output as a function of input…
Of all forms of business organizations, corporations are the only form which never face the long run.
2. Question 2 Of all forms of business organizations, corporations are the only form which never face the long run. 1 point True False
In some industries, the emergence of new technological advances have eliminated the Law of Diminishing Marginal Product.
14. Question 14 In some industries, the emergence of new technological advances have eliminated the Law of Diminishing Marginal Product. 1 point True False
