Marginal product is?
the change in total product divided by the change in quantity of labor
total product divided by the quantity of labor
always positive
unrelated to total product
the marginal cost curve first declines and then increases because of...?
increasing, then diminishing, marginal utility
the decline in the gap between ATC and AVC as output expands
increasing, then diminishing, marginal returns
constant marginal revenue
The vertical distance between ATC and AVC measures:
marginal cost
total fixed cost
average fixed cost
economic profit per unit
ATC is:
AVC-AFC
MC+AVC
AFC+AVC
(AFC+AVC)+Q
when the marginal cost curve lies:
above the ATC curve, ATC rises
above the AVC curve, ATC rises
below AVC curve, total fixed cost increases
below the ATC curve, total fixed cost falls
the long run ATC curve is often called the firm's....?
planning curve
capital-expansion path
total product curve
production possibilities curve
Curve MR is horizontal because:
product price falls as output increases
the law of diminishing marginal utility is at work
the market demand for this product is perfectly elastic
the firm is a price taker
at a price of $131 and 7 unites of output:
MR exceeds MC, and the firm should expand its output
total revenue is less than total cost
AVC exceeds ATC
the firm would earn only a normal profit
in maximizing profits at 9 units of output, this firm is adhering to which of the following decision rules?
produce where MR exceeds MC by the greatest amount
produce where P exceeds ATC by the greatest amount
Produce where total revenue exceeds total cost by the greatest amount
produce where average fixed costs are zero
suppose price declined from $131 to $100. this firm's...?
Marginal-cost curve would shift downward
economic profit would fall to zero
profit-maximizing output would decline
total cost would fall by more than its total revenue
we know the firm is a price taker because:
its MC curve slopes upward
its ATC curve is U shaped
its MR curve is horizontal
MC and ATC are equal at the profit-maximizing output
the equality that Price (P), Marginal Cost (MC), and minimum Average Total Cost (ATC):
occurs only in constant-cost industries
encourages entry of new firms
means the "right goods" are being produced in the "right ways"
results in a zero accounting profit
when P=MC=lowest ATC for individual firms, in the market:
consumer surplus necessarily exceeds producer surplus
consumer surplus plus producer surplus is at a maximum
producer surplus necessarily exceeds consumer surplus
supply and demand are identical
which of the following pairs are both "competition-like elements" in monopolistic competition?
price exceeds MR; standardized product
entry is relatively easy; only a normal profit in the long run
price equals MC at the profit maximizing output; economic profits are likely in the long run
the firms' demand curve is downsloping; differentiated products
check all that apply to Pure monopoly
sole supplier of a product
one of many suppliers of the same product
easy entry
difficult entry
Unique product
product has many close substitutes
price maker
price taker
a pure monopoly will be less efficient than pure competition
a pure monopoly will be more efficient than a pure competition
check all that apply to Monopolistic competion
the only firm or sole supplier of a product
one of many firms or suppliers of a product
easy entry and exit
difficult entry and exit
standardized product
differentiated product
Price maker
Price taker
efficient
not efficient
check all that apply to oligopoly
one of many suppliers or firms
one of few suppliers or firms
inefficient
check all that apply to Pure competition
one of many firms or suppliers
