1. Which one of the following variables is most likely to increase as production effort is increased?
- Marginal revenue
- Total costs
- Net revenue
- Marginal costs
- Average revenue
2. Which one of the following variables is most likely to decline as production effort increases?
- Marginal revenue
- Total costs
- Total production
- Marginal cost
- Total revenue
3. The efficient price of a license fee is determined by the difference between ...
- Total revenue and total cost
- Average revenue and total cost
- Marginal revenue and marginal cost
- Average revenue and marginal cost
- Total revenue and marginal cost
4. Which one of the following statements is false?
- The economically optimal level of production is less than the open-access equilibrium level of production
- Charging a license fee for access to a common resource will reduce the production level below the open-access equilibrium
- The "tragedy of the commons" is more likely to occur as production effort increases
- The economically optimal level of production occurs at the maximum sustainable yield
- A license fee will reduce the incentives for entry into a market
5. Which one of the following is least likely to be considered a public good?
- Wildlife
- A river
- An interstate highway
- A national park
- A golf course