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1 | |
The primary assumption for the behavior of firms is that they seek to |
| | A) | maximize sales. |
| | B) | minimize costs. |
| | C) | maximize profits. |
| | D) | maximize market share. |
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2 | |
In determining the profit (revenue minus cost) maximizing level of output an economist always looks to _____ cost for that side of the equation |
| | A) | marginal |
| | B) | average variable |
| | C) | average fixed |
| | D) | average total |
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3 | |
The costs of production that are not dependent on output are called |
| | A) | fixed costs. |
| | B) | total costs. |
| | C) | marginal costs. |
| | D) | variable costs. |
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4 | |
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif:: ::/sites/dl/free/0072345772/33371/guell_mcquiz_5_1.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (3.0K)</a>]]> | | In the collection of figures above the Total Product of Labor curve is most likely to look like |
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| | A) | A |
| | B) | B |
| | C) | C |
| | D) | D |
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5 | |
In the collection of figures above the Total Cost curve is most likely to look like |
| | A) | A |
| | B) | B |
| | C) | C |
| | D) | D |
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6 | |
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif:: ::/sites/dl/free/0072345772/33371/guell_mcquiz_5_2.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (1.0K)</a>]]> | | In the cost curves above the Marginal Cost is likely to be |
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| | A) | 1 |
| | B) | 2 |
| | C) | 3 |
| | D) | 4 |
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7 | |
In the cost curves above the Average Total Cost is likely to be |
| | A) | 1 |
| | B) | 2 |
| | C) | 3 |
| | D) | 4 |
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8 | |
In the cost curves above the Average Variable Cost is likely to be |
| | A) | 1 |
| | B) | 2 |
| | C) | 3 |
| | D) | 4 |
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9 | |
In the cost curves above the Average Fixed Cost is likely to be |
| | A) | 1 |
| | B) | 2 |
| | C) | 3 |
| | D) | 4 |
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10 | |
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif:: ::/sites/dl/free/0072345772/33371/guell_mcquiz_5_3.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (1.0K)</a>]]> | | In the collection of figures above which one(s) could represent marginal revenue. |
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| | A) | A |
| | B) | B |
| | C) | C |
| | D) | A and C |
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11 | |
In the collection of figures above which one(s) could represent marginal revenue. |
| | A) | A |
| | B) | B |
| | C) | C |
| | D) | A and D |
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12 | |
In the collection of figures above, which one represents marginal revenue when there are no competitors. |
| | A) | A |
| | B) | B |
| | C) | C |
| | D) | D |
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13 | |
In the collection of figures above, which one represents marginal revenue when there are many competitors. |
| | A) | A |
| | B) | B |
| | C) | C |
| | D) | D |
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14 | |
The shutdown condition suggests that a firm should |
| | A) | produce where MC=MR. |
| | B) | produce where AVC is minimized. |
| | C) | never produce. |
| | D) | not produce if the price is less than AVC. |
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15 | |
The profit maximizing firm will produce where MC=MR but only at prices |
| | A) | above ATC. |
| | B) | below ATC. |
| | C) | below AVC. |
| | D) | above AVC. |
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16 | |
A firm in an industry with many competitors has a marginal revenue that is |
| | A) | positively related to output. |
| | B) | negatively related to output. |
| | C) | unrelated to output. |
| | D) | vertical. |
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2003 McGraw-Hill Higher Education