ECO Ch 6,7, & 9

Refer to the data. Total fixed cost is: A.) $150.00. B.) $100.00. C.) $50.00. D.) $6.25.

Marginal cost is the: A.)change in average total cost that results from producing one more unit of output. B.) rate of change in total fixed cost that results from producing one more unit of output. C.) change in average variable cost that results from producing one more unit of output. D.) change in total cost that results from producing one more unit of output.

An explicit cost is:

Economies and diseconomies of scale explain:

The law of diminishing marginal utility states that:

Which of the following best expresses the law of diminishing returns?

If a firm wanted to know how much it would save by producing one less unit of output, it would look to:

Refer to the data. The marginal cost of the fifth unit of output is:

Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. Creamy Crisp's implicit costs, including a normal profit, are:

To the economist, total cost includes:

The utility of a good or service:

Gigantic State University raises tuition for the purpose of increasing its revenue so that more faculty can be hired. GSU is assuming that the demand for education at GSU is:

Why do people tend to eat more at all-you-can-eat buffet restaurants than at restaurants where each item is purchased separately?

The concept of price elasticity of demand measures:

Production costs to an economist:

The law of diminishing marginal utility explains why:

Total fixed cost (TFC):

If demand for a product is elastic, the value of the price elasticity coefficient is:

Accounting profits are typically:

The fact that most medical care purchases are financed through insurance:

Marginal utility is the:

Normal profit is:

In which of the following cases will total revenue increase?

The price elasticity of demand coefficient measures:

In the long run:

Other things the same, if a price change causes total revenue to change in the opposite direction, demand is:

Refer to the data. The marginal cost curve would intersect the average variable cost curve at about:

Marginal product:

Refer to the diagram. In the P1P2 price range, demand is:

The Illinois Central Railroad once asked the Illinois Commerce Commission for permission to increase its commuter rates by 20 percent. The railroad argued that declining revenues made this rate increase essential. Opponents of the rate increase contended that the railroad's revenues would fall because of the rate hike. It can be concluded that:

Refer to the data. Diminishing returns begin to occur with the hiring of the _________ unit of labor.

Fixed cost is:

Prashanth decides to buy a $75 ticket to a particular New York professional hockey game rather than a $50 ticket for a particular Broadway play. We can conclude that Prashanth:

Refer to the data. The price elasticity of demand is unity:

The demand for a luxury good whose purchase would exhaust a big portion of one's income is:

If a variable input is added to some fixed input, beyond some point the resulting extra output will decline. This statement describes:

A perfectly inelastic demand schedule:

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

The main determinant of elasticity of supply is the: A.) urgency of consumer wants for the product. B.) amount of time the producer has to adjust inputs in response to a price change. C.) number of close substitutes for the product available to consumers. D.) number of uses for the product.

Supply curves tend to be: A.) perfectly inelastic in the long run because the law of scarcity imposes absolute limits on production. B.) less elastic in the long run because there is time for firms to enter or leave an industry. C.) more elastic in the long run because there is time for firms to enter or leave the industry. D.) perfectly elastic in the long run because consumer demand will have sufficient time to adjust fully to changes in supply.