Exam 7: Costs

Economists proclaim that competitive firms make zero economic profit in the long run.This shows how

Variable costs are

Learning by doing is represented by

What is one possible reason a firm that produces balloons might outsource its accounting department?

An accountant may amortize the expense of a durable good by dividing the total amount spent on the good by the number of years the good is expected to last.An economist may amortize the expense of a durable and never fully account for the total expense.

Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q.Which of the following statements is TRUE at all levels of production?

In the short run,marginal cost is minimized when

If average cost is positive,

Suppose that each worker must use only one shovel to dig a trench,and shovels are useless by themselves.In the long run,the firm will experience

If there are diseconomies of scale within a given range of output,which of following is (are)TRUE?

In the long run,fixed costs are

In the long run,the expansion path is

Many universities have either a top football program OR a top basketball program.Very few have both.These results suggest the presence of

-The long-run average cost curve may initially slope downward due to

Economic efficiency entails

Which of the following will cause the average cost curve of making cigarettes to shift?

What are the functions for MC and AC if TC = 20q + 10q²?

Long-run average cost is never greater than short-run average cost because in the long run,

Fixed costs are

If the average cost of producing a good is increasing as a firm produces more of the good,then which of the following must be TRUE?