Exam 21: Acosts and the Supply of Goods

Figure 8-2 -The average variable cost (AVC)and average total cost (ATC)for a firm are indicated in Figure 8-2.If the marginal cost curve were constructed,at what output would it cross the AVC curve?

The opportunity costs associated with the use of resources owned by a firm are usually

Which of the following would increase a firm's average total costs?

Which of the following would most likely cause a firm's cost curve to shift downward?

Larger firms will often have lower minimum per-unit costs than smaller firms because

Long-run diseconomies of scale exist over the range of output for which the long-run average cost curve is

"A good business decision maker will never sell a product for less than it costs to produce." This statement is

Which of the following is most likely to be true of economic and accounting profits?

An activity known as shirking is least likely to occur when

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

The long-run average total cost (LRATC)curve

Figure 8-2 -According to Figure 8-2,at what output would a properly constructed marginal cost curve cross the ATC curve?

Normal profit is a term for

Marginal cost is defined as the increase in total cost resulting from an increase in

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

Economies of scale imply that within some range a firm can increase the size of operation and

Which of the following is a difference between corporations and partnerships?

Use the table below to answer the following question. Average total cost is at a minimum when output is

The short-run average total cost (ATC)curve of a firm will tend to be U-shaped because

You purchased an automobile two years ago for $10,000.Its current market price is $5,000,and the expected market value one year from now is $4,500.If the interest rate is 10 percent,how much will it cost you to keep the car for an additional year (over and above operation and maintenance costs)?