please help Bookmarks People Window Help cro Quiz - ch 6,7,8-EC micro ch 6,7,8.p

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Bookmarks People Window Help cro Quiz - ch 6,7,8-EC micro ch 6,7,8.pdfxQ Econom AN/micro%20ch%206,7,8.pdf ics Chapter 5 flast 6. (Figure 7.4) LRATC ATCmin Output Which region(s) in the figure indicate(s) diseconomies of scale? A) A B) B C) C D) B and C 7. Which of the following occurs in the short run? A) Wal-Mart opens a new store. B) Five new workers are hired. C) A new firm enters the retail industry D) Two firms leave the retail industry 8. Which of the following is a sunk cost for an ice cream shop? A) ice cream ingredients

Explanation / Answer

(6) (D)

When there is diseconomies of scale, LRAC will slope upwards, which holds true for region C only.

(7) (B)

Labor is always considered a variable input in the short run, so hiring of labor indicates short run behavior of a firm.

(8) Options are not visible.

(10) (A)

Healthcare expense paid for employees is an explicit cost (accounting cost)

(11) (B)

Economic profit = Accounting profit - Implicit costs, and implicit costs are not measured using normal accounting methods.

(12) (D)

Option (D) is a benefit foregone, so this is an opportunity (implicit) cost.

(13) (C)

(14) (A)

MC always intersects AC and AVC at their minimum points.

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