Exam 8: A: Costs and the Supply of Goods

Bart operates a lemonade stand in front of his house. His father works at the Springfield Nuclear Power Plant. Which of the following is most likely to be true?

The difference between zero accounting profit and zero economic profit is that

Figure 8-14 The following question(s) refer(s) to the below cost curves for one very small firm in a large market. -Refer to Figure 8-14. Diminishing returns to the variable factor of production for this firm set in at

Libby has a business using no owned capital and makes an accounting profit of $52,000 a year. Libby 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 Libby's business per year is

In recent years, the number of farms has fallen while the average farm size has increased. What concept may explain this phenomenon?

Which of the following is always true?

Which of the following is the best example of a fixed cost for a business?

The long run is a period of

Figure 8-3 -According to Figure 8-3, at what output would a properly constructed marginal cost curve cross the ATC curve?

Figure 8-6 -At what output does the firm depicted in Figure 8-6 minimize its per-unit cost of production?

What is the difference between accounting profit and economic profit?

As output is expanded, if MC is more than ATC,

The long run is a period of

A fruit packing plant usually shuts down for three months each year. During that period, its

Which of the following is true?

An airline can increase its profit by offering standby customers an unsold seat at a substantial discount just before takeoff because

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

Figure 8-14 The following question(s) refer(s) to the below cost curves for one very small firm in a large market. -Refer to Figure 8-14. This firm minimizes its per-unit costs of production at an output level of

If you paid $100 for a truckload of cabbage on Monday, how much should you be willing to sell it for on Friday, the day before it spoils?

Suppose you value watching a movie at $5. You rent it from your local movie rental store for $3.50 for one night. You do not get a chance to watch it, so you decide to keep it an extra day and pay a late fee of $2. Your decision is