QUESTION 27 Economists consider all of the following cost considerations importa

Question

QUESTION 27 Economists consider all of the following cost considerations important for economic decision making EXCEPT A. Opportunity costs B. Variable costs C. Implicit costs D. Sunken costs 1 points QUESTION 28 Which of the following statements is true? A. If demand increases, then price will decrease B. If demand decreases, then price will decrease C. If price increases, then the demand curve will shift to the left D. If price decreases, then the demand curve will shift to the left 1 points QUESTION 29 What do the presence of ticket scalpers suggest about the market for sold-out shows? A. That the market is already at equibrium. B. That the face value of tickets (market price) is less than the market equilibrium. C. That the face value (market price) of tickets is greater than the market equilbrium. D. None of the above. 1 points QUESTION 30 If long run average cost increases as quantity increases, a firm is said to have A. diseconomies of scale B. constant returns to scale C. economies of scale 1 points QUESTION 31 The rational firm will seek to maximize A. Total revenue B. Marginal revenue C. Cost D. Profit 1 points QUESTION 32 __________ will likely earn economic profits in the long run. A. Perfectly competitive firms B. Monopolists C. Monopolistic competitive firms D. No firms 1 points QUESTION 33 Which of the following is most likely a fixed cost in the short run? A. Wages B. Rent C. Raw materials D. Utilities. 1 points QUESTION 34 The automobile industry (automakers, not car dealers) is an example of: A. Perfect competition B. Monopolistic competition C. Oligopoly D. Monopoly 1 points QUESTION 35 A rise in price will _________________. A. increase supply. B. decrease demand. C. increase supply and decrease demand. D. increase quantity supplied and decrease quantity demanded. 1 points QUESTION 36 When oligopolists collude, they form a A. Monopoly B. Conglomerate C. Union D. Cartel

Explanation / Answer

Answer 27) option d, sunk costs, they are irrelevant as they have been incurred already irrespective of production level, so even if no production happens, then also this cost can't be recovered.

28) option a

Demand curve never shifts in response to price changes & as dd curve slopes downwards, so if price falls then quantity increases.

29) option c

30) diseconomies of scale occurs if LRAC rises as production increases, option a

31) opyioo d, . profit maximization is the main aim of any rational firm

32) option b, monopoly

33) option d, utilities like electricity, water

34) oligopoly option c

35) option d

36)option d cartel

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