Question:

Which would be an implicit cost for a firm? The cost:

A.

Of worker wages and salaries for the firm.

B.

Paid for leasing a building for the firm.

C.

Paid for production supplies for the firm.

D.

Of wages foregone by the owner of the firm.

Answer» d. Of wages foregone by the owner of the firm.

Question:

For a monopolist, marginal revenue is always less than price because

A.

as output increases, the price of all units must fall to sell the additional unit

B.

because at lower prices, profit margins fall

C.

in order to sell additional quantities, the additional units much be sold at a lower price

D.

because monopolist is a price maker

Answer» a. as output increases, the price of all units must fall to sell the additional unit

Question:

A production possibility curve is concave to the point of origin because of

A.

increasing marginal rate of transformation (mrt)

B.

increasing marginal opportunity cost (moc)

C.

both of the above

D.

decreasing marginal rate of transformation

Answer» c. both of the above

Question:

In monopolistic competition in long run equilibrium, the price will be equal to:

A.

the marginal cost

B.

marginal revenue

C.

average variable cost

D.

average total cost

Answer» d. average total cost