ual Economics (AGRI 3500)-Exam 3 Date: 11/14/2017 Multiple-Choice Questions [100

Question

ual Economics (AGRI 3500)-Exam 3 Date: 11/14/2017 Multiple-Choice Questions [100 points). Ceteris paribus holding other things constant 1. Given demand and supply supply will cause its equilibrium price of the good to a. fall b. rise c. remain constant d. can't tell e. none of the above curves, a simultaneous increase in demand and a decrease in 2. Price, marginal revenue, and average revenue are all the same for a firm that is a a. price searcher b. price taker c. price setter d. price forecaster e. none of the above 3. The supply curve of a perfectly competitive firm is equal to the a. marginal cost curve above the break-even point b. average total cost curve above the shut-down point marginal cost curve above the shut-down point d. c. average total cost curve above the break-even point Accounting profits and economic profits a. 4. are the same only for firms in perfectly competitive markets b. both use the concept of opportunity cost are usually the same c. d. only economic profits use the concept of opportunity cost e. none of the above Which one of the following is not a characteristic of perfect competition? a. differentiated product b. large number of sellers c. no limit on entry d. large number of buyers e. none of the above 5. Which item would be treated differently in the calculation of economic profits and accounting profits? a. purchase of a tractor b. taxes paid c. property taxes d. farmer's own labor e. depreciation on barn 6. Which of the following is constant with respect to output? a. TC b. FC C. MC d. total revenue 7.

Explanation / Answer

Question 1). Answer :- Option b). Rise.

Question 2). Answer :- Option b). Price taker.

Question 3). Answer :- Option a). Marginal cost curve above the break even point.

Question 4). Answer :- Option d). Only economic profits use the concept of opportunity cost.

Question 5). Answer :- Option a). Differentiated product.

Question 6). Answer :- Option d). farmer's own labor.

Question 7). Answer :- Option b). FC (Fixed Cost)

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