Exam 8: Costs and the Supply of Goods

Which of the following would cause a firm's cost curves to shift upward?

Use the figure to answer the following question(s). Figure 8-10 -In Figure 8-10, which output would minimize the firm's average total cost of production?

If an employer could really hire women who were willing and able to do the same work as men for 20 percent less, profit-seeking employers would have

If the CEO of a large corporation uses the corporate jet to fly friends to the Super Bowl at company expense, this is most clearly an example of

A student bought a used car for $10,000 and resold it one year later for $6,500. Insurance, license, and operating costs for the year were $1,500. What was his economic cost of owning and operating the car for the year if the market rate of interest was 10 percent?

The long-run average total cost curve

Sophia has a business using no owned capital and makes an accounting profit of $52,000 a year. Sophia could have worked for Verizon Wireless with a pay of $35,000 a year, but she would not have had time to run her business. The economic profit from Sophia's business per year is

If a firm's average total costs fall as it produces a larger output,

Use the figure to answer the following question(s). Figure 8-8 -In Figure 8-8, which output minimizes per-unit cost?

If most firms in an industry are earning a 7 percent rate of return on their assets, but your business is earning 9 percent, your rate of economic profit is

Traditionally, men have been more willing to accept jobs that

When total revenue minus total economic cost is greater than zero, the firm is

If high-level executives of a company award themselves sizable bonuses even though the firm they manage is making losses and performing poorly, this event is most likely to arise because of

Which of the following is most likely to be an implicit cost of production?

Which of the following provides the strongest evidence that the corporate form of business structure is relatively efficient, particularly when business firms are large?

If a firm doubles all of its inputs and its output triples, it is said to be experiencing

Which of the following must be true if average total costs are rising?

A car leasing company that expands its size by buying its competitors may run the risk of increasing production costs due to

If a firm has a U-shaped long-run average cost curve,

Use the figure to answer the following question(s). Figure 8-1 -What is the firm's total cost in Figure 8-1 when it produces four units?