$116. more than $116. greater than $30. less than or equal to $20. $30. $116. mo

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$116. more than $116. greater than $30. less than or equal to $20. $30. $116. more than $116. greater than $30. less than or equal to $20. $30. A decrease in the price that a price taker receives for its output will cause the firm to Question 2 options: increase output and earn a smaller profit. shut down and leave the industry. leave output unchanged and earn a smaller profit. decrease output and earn a smaller profit or a larger loss. decrease output and increase fixed cost. A decrease in the price that a price taker receives for its output will cause the firm to A decrease in the price that a price taker receives for its output will cause the firm to increase output and earn a smaller profit. shut down and leave the industry. leave output unchanged and earn a smaller profit. decrease output and earn a smaller profit or a larger loss. decrease output and increase fixed cost. increase output and earn a smaller profit. shut down and leave the industry. leave output unchanged and earn a smaller profit. decrease output and earn a smaller profit or a larger loss. decrease output and increase fixed cost. For a price taker, the gain from selling one more unit is Question 3 options: its marginal cost. its sales price. its average variable cost. its average total cost. its average fixed cost. For a price taker, the gain from selling one more unit is For a price taker, the gain from selling one more unit is its marginal cost. its sales price. its average variable cost. its average total cost. its average fixed cost. its marginal cost. its sales price. its average variable cost. its average total cost. its average fixed cost. $46. $200. $225. $400. $450. $46. $200. $225. $400. $450. When the existing factory is becoming increasingly crowded and workers must wait for their turn to use existing tools, it is an example of diminishing Question 5 options: marginal management. marginal returns. marginal utility. marginal benefit. microeconomics. When the existing factory is becoming increasingly crowded and workers must wait for their turn to use existing tools, it is an example of diminishing When the existing factory is becoming increasingly crowded and workers must wait for their turn to use existing tools, it is an example of diminishing marginal management. marginal returns. marginal utility. marginal benefit. microeconomics. marginal management. marginal returns. marginal utility. marginal benefit. microeconomics. The shutdown condition for a price taker is where Question 6 options: total revenue is less than the total cost of both the fixed and the variable factors of production. total revenue is less than the cost of the variable factors of production. total revenue is less than the cost of the fixed factors of production. profit is negative. profit is zero. The shutdown condition for a price taker is where The shutdown condition for a price taker is where total revenue is less than the total cost of both the fixed and the variable factors of production. total revenue is less than the cost of the variable factors of production. total revenue is less than the cost of the fixed factors of production. profit is negative. profit is zero. total revenue is less than the total cost of both the fixed and the variable factors of production. total revenue is less than the cost of the variable factors of production. total revenue is less than the cost of the fixed factors of production. profit is negative. profit is zero. If a price taker produces an output level where price is greater than marginal cost, then the firm should Question 7 options: pay more to its variable factors of production. pay more to its fixed factors of production. decrease output to earn a higher profit or a smaller loss. increase output to earn a higher profit or a smaller loss. leave its output decision unchanged. If a price taker produces an output level where price is greater than marginal cost, then the firm should If a price taker produces an output level where price is greater than marginal cost, then the firm should pay more to its variable factors of production. pay more to its fixed factors of production. decrease output to earn a higher profit or a smaller loss. increase output to earn a higher profit or a smaller loss. leave its output decision unchanged. pay more to its variable factors of production. pay more to its fixed factors of production. decrease output to earn a higher profit or a smaller loss. increase output to earn a higher profit or a smaller loss. leave its output decision unchanged. Which of the following statements is correct? Question 8 options: Marginal cost is a variable cost. Marginal cost is a fixed cost. Marginal cost is a long-run total cost. Marginal cost is a short-run average fixed cost. Marginal cost is a long-run average fixed cost. Which of the following statements is correct? Which of the following statements is correct? Marginal cost is a variable cost. Marginal cost is a fixed cost. Marginal cost is a long-run total cost. Marginal cost is a short-run average fixed cost. Marginal cost is a long-run average fixed cost. Marginal cost is a variable cost. Marginal cost is a fixed cost. Marginal cost is a long-run total cost. Marginal cost is a short-run average fixed cost. Marginal cost is a long-run average fixed cost. The marginal cost curve Question 9 options: first rises and then declines. rises when the average total cost curve lies above the average variable cost curve. rises when marginal product begins to fall. intersects the total variable cost and total cost curves at less than their maximum points. is the same as the marginal revenue curve. The marginal cost curve The marginal cost curve first rises and then declines. rises when the average total cost curve lies above the average variable cost curve. rises when marginal product begins to fall. intersects the total variable cost and total cost curves at less than their maximum points. is the same as the marginal revenue curve. first rises and then declines. rises when the average total cost curve lies above the average variable cost curve. rises when marginal product begins to fall. intersects the total variable cost and total cost curves at less than their maximum points. is the same as the marginal revenue curve. If diminishing marginal returns are in effect, Question 10 options: marginal cost decreases as the firm increases output. marginal cost increases as the firm increases output. marginal cost increases as the firm decreases output. total cost increases as the firm decreases output. total cost decreases as the firm increases output. If diminishing marginal returns are in effect, If diminishing marginal returns are in effect, marginal cost decreases as the firm increases output. marginal cost increases as the firm increases output. marginal cost increases as the firm decreases output. total cost increases as the firm decreases output. total cost decreases as the firm increases output. marginal cost decreases as the firm increases output. marginal cost increases as the firm increases output. marginal cost increases as the firm decreases output. total cost increases as the firm decreases output. total cost decreases as the firm increases output. Because of the relationship between marginal cost and the supply curve, points on the supply curve represent the extra Question 11 options: benefit of all units produced. profit of all units produced. cost of the last unit produced. revenue of the last unit produced. cost of all units produced. Because of the relationship between marginal cost and the supply curve, points on the supply curve represent the extra Because of the relationship between marginal cost and the supply curve, points on the supply curve represent the extra benefit of all units produced. profit of all units produced. cost of the last unit produced. revenue of the last unit produced. cost of all units produced. benefit of all units produced. profit of all units produced. cost of the last unit produced. revenue of the last unit produced. cost of all units produced. $5. $10. $20. $35. $55. $5. $10. $20. $35. $55. Total revenue minus the sum of explicit and implicit costs defines Question 13 options: gross earnings. profit. net earnings. net worth. retained earnings. Total revenue minus the sum of explicit and implicit costs defines Total revenue minus the sum of explicit and implicit costs defines gross earnings. profit. net earnings. net worth. retained earnings. gross earnings. profit. net earnings. net worth. retained earnings. A profit-maximizing price taker must decide Question 14 options: only on what price to charge, taking output as fixed. both what price to charge and how much to produce. only on how much to produce, taking price as fixed. only on which industry to join, taking price and output as fixed. only on how much revenue it wishes to collect. A profit-maximizing price taker must decide A profit-maximizing price taker must decide only on what price to charge, taking output as fixed. both what price to charge and how much to produce. only on how much to produce, taking price as fixed. only on which industry to join, taking price and output as fixed. only on how much revenue it wishes to collect. only on what price to charge, taking output as fixed. both what price to charge and how much to produce. only on how much to produce, taking price as fixed. only on which industry to join, taking price and output as fixed. only on how much revenue it wishes to collect. If the law of diminishing marginal returns holds true, then eventually both the marginal cost curve and the average total cost curve must If the law of diminishing marginal returns holds true, then eventually both the marginal cost curve and the average total cost curve must become vertical lines. reach a maximum and begin to fall. reach a minimum and begin to increase. become horizontal lines. have a slope of 45 degrees. become vertical lines. reach a maximum and begin to fall. reach a minimum and begin to increase. become horizontal lines. have a slope of 45 degrees. $116. more than $116. greater than $30. less than or equal to $20. $30. Refer to the table above. The average fixed cost of producing 5 bicycles is A decrease in the price that a price taker receives for its output will cause the firm to

Explanation / Answer

1) $116 2)shut down and leave the industry. 3)its marginal cost. 4)$400 5)marginal returns. 6)total revenue is less than the cost of the variable factors of production. 7)decrease output to earn a higher profit or a smaller loss 8)Marginal cost is a variable cost. 9)rises when the average total cost curve lies above the average variable cost curve.

10)marginal cost decreases as the firm increases output.

11)marginal cost decreases as the firm increases output.

12)$20

13) gross earning

14)only on how much to produce, taking price as fixed.

15)

have a slope of 45 degrees.

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