A. expenditure set
B. isocost line.
C. budget constraint
D. isoquant

A. an indifference curves.
B. an isoquant.
C. an isocost line
D. a production functions

A. downward slog to the right
B. U-shaped
C. Horizontal
D. upward slog to the right

A. 160; 270
B. 10; 30
C. 10; 3.33
D. 30; 10

A. decreasing average fixed costs.
B. decreasing marginal costs.
C. decreasing average variable costs.
D. increasing marginal costs.

A. total fixed cost only.
B. total variable costs only.
C. both total variable costs and total costs.
D. total costs only

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

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. 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

A. equal to what a monopolist would choose in the same industry
B. between that which would prevail under competition and that which a monopolist would choose in the same industry
C. that would prevail under competition
D. between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.