1. Total fixed costs ________ in the short run as the quantity of output increases.
2. it a firm has diseconomies of scale, its average total cost will _______ if it increases the quantity if output it is producing.
3. A firm is earning a positive profit if price is greater than
4. If the wage rate increases, which of the following will not happen?
5. Total cost _______ in the short run as the quantity of output increases.
6. A firm that is a price taker
7. If the long-run average cost drops as the firm proportionally expands it use of all its inputs, the firm has
8. A company has the following costs and revenue: fixed costs = $500, variable costs = $700, and total revenue = $600. Which of the following statements is true?
9. An increase in the mandatory prison term for possession of drugs would reduce use by increasing the _________ of using drugs.
10. A firm is evaluating its production process and finds that a larger factory would allow a more productive layout of machines and the purchase of larger-scale machines that can produce the output more cheaply. The slope of the long-run average cost curve of the point the firm is currently operating is
11. A price taking firm with a loss will
12. A firm should shut down it total revenue is less than
13. A price-taking firm is selling 100 units if a good for the market price. If the marginal cost of the 100th unit is higher than the marginal revenue of that unit,
14. The N.M. Corporation has exactly the same costs of production as last year except for fixed cost, which are $50,000 this year compared to $30,000 last year. Which of the following statements is false?
15. The difference between the average cost and the average variable cost curves is
16. Which cost curve has a slope equal to zero?
17. Your mother yells at you for skipping your Economics class last week. She says, I paid good money for you to take that class, now I expect.......
18. When Cody's Cutting Service goes from three lawn mowers to six workers and six lawn mowers, the number......
19. Which of the following accurately reflects the trends in farming over time?
20. The marginal cost of making the 100th unit is $50 and the average total cost of the 100th unit is $100. What do we know about the average total cost curve at a quantity of 100?