Econ Test 2

Which of the following constitutes an implicit cost to the Johnston Manufacturing Company?

Implicit and explicit costs are different in that

Accounting profits equal total revenue minus

An explicit cost is

Accounting profits are typically

Economic profits are calculated by subtracting

Normal profit is

Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were

The basic characteristic of the short run is that

To economists, the main difference between the short run and the long run is that

Marginal product is

Marginal product

Fixed cost is

Marginal cost is the

Suppose that, when producing 10 units of output, a firm's AVC is $22, its AFC is $5, and its MC is $30. This firm's

A purely competitive seller is

Which idea is inconsistent with pure competition?

Which of the following is a reason why individual firms under pure competition would not find it gainful to advertise their product?

Which of the following statements is correct?

A competitive firm in the short run can determine the profit-maximizing (or loss-minimizing) output by equating

The MR = MC rule applies

The MR = MC rule can be restated for a purely competitive seller as P = MC because

Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation

A purely competitive firm's short-run supply curve is

Suppose you find that the price of your product is less than minimum AVC. You should

If a purely competitive firm shuts down in the short run,

In the short run, a purely competitive firm will always make an economic profit if

Which market model assumes the least number of firms in an industry?

In which market model would there be a unique product for which there are no close substitutes?

Mutual interdependence would tend to limit control over price in which market model?

In which two market models would advertising be used most often?

In which market model are the conditions of entry into the market easiest?

Local electric or gas utility companies mostly operate in which market structure?

The fast-food restaurant industry in a large city would be an example of which market model?