The formula for average variable cost (AVC) is ?
A. DTVC/Dq
B. q/TVC
C. Dq/DTVC
D. TVC/q
Profit Maximizing Under Perfect Competition And Monopoly
A graph showing all the combinations capital and labor available for a given total cost is the ?
A graph showing all the combinations capital and labor available for a given total cost is the ?
A. expenditure set
B. isocost line.
C. budget constraint
D. isoquant
A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
A. an indifference curves.
B. an isoquant.
C. an isocost line
D. a production functions
Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
A. downward slog to the right
B. U-shaped
C. Horizontal
D. upward slog to the right
If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?
If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?
A. 160; 270
B. 10; 30
C. 10; 3.33
D. 30; 10
Diminishing marginal return implies ?
Diminishing marginal return implies ?
A. decreasing average fixed costs.
B. decreasing marginal costs.
C. decreasing average variable costs.
D. increasing marginal costs.
The costs that depend on output in the short run are ?
The costs that depend on output in the short run are ?
A. total fixed cost only.
B. total variable costs only.
C. both total variable costs and total costs.
D. total costs only
Which statement is False ?
Which statement is False ?
A. Fixed costs are zero if the firms is producing nothing.
B. Fixed costs are the difference between total costs and total variable costs
C. There are no fixed costs in the long run
D. Fixed costs do not depend on the firm’s level of output
Which of the following statements is False ?
Which of the following statements is False ?
A. participants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap
B. In a contestable market, economic profits cannot persist in the long run.
C. In a contestable market forces will guarantee that the firms produce efficiently or be driven out of business
D. For a market to be contestable, the product must be produced with a labor-intensive technology
A major weakness of the kinked demand curve model of oligopoly is that ?
A major weakness of the kinked demand curve model of oligopoly is that ?
A. it assumes that firms believe that their rivals will not respond to any price change they initiate
B. it fails to explain how a firm arrived at its price and output decision initially
C. The model cannot be tested empirically.
D. Real-world pricing strategies are more simple than those assumed in this model