Exam 10: Organizing Production

Last Tuesday you purchased 100 shares of Jitters Coffee Company, a corporation, for $25.00 per share. Unfortunately, the company went bankrupt later that same day. If the company still owed $1 million in debts after all assets have been liquidated and there are 1 million stockholders, what would be your personal loss from the remaining debt?

Under ________ there are many firms selling identical products.

Which of the following pairs of market types are both characterized by having a large number of firms?

Tara, a pharmacist, is planning on opening her own pharmacy. Tara currently earns $50,000 a year at her job. She has calculated that it will cost her $6,000 in rent and utilities and $25,000 for an assistant per year to run her pharmacy. What is the amount of opportunity cost that Tara incurs in running her own pharmacy?

A market structure in which one firm produces a good or service that has no close substitutes is called

The return that an entrepreneur can expect to earn, on average, is called

The average return for supplying entrepreneurial ability is the entrepreneur's

Paul and Wayne are starting a consulting firm together. Their liability is limited; therefore, their firm is an example of a

Firms organize production by using a mixture of two systems: (1) command systems and (2) incentive systems.

In September 2008, Toyota Motor's share of the U.S. auto sales market was 15 percent, Ford's market share was 12.1 percent, GM's was 29.1 percent, Honda's was 10 percent, Nissan's share was 6.2 percent, and Chrysler's market share was 11.1 percent. What type of market structure would the market for autos represent?

"The concentration measures for the United States calculated by the Department of Commerce understate the degree of concentration in the newspaper industry." Do you agree? Explain.

The type of firm that is most numerous is the

Which of the following is TRUE?

Which of the following statements does NOT correctly characterize normal profit?

A major disadvantage of a proprietorship is that the ________.

The limited liability enjoyed by Jitters Coffee Company Corporation is a benefit that protects

A firm has achieved technological efficiency whenever it has

-The above table shows the market shares for all the landscaping services in a suburban area. A merger between firms E and F would

The Herfindahl-Hirschman Index measures an industry's concentration of

Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself. Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's economic profit is equal to