Economics 2

44 cards

Chapters 5chapters 6chapters 7chapters 8


 
  
Created Dec 8, 2010
by
mgonzales

 

 
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  Side A   Side B
1
for a monopolist the maximizing rate of output occurs where
 
P=MC
2
rising marginal cost result from 
 
falling marginal physical product
3
which of the following is equivalent to ATC
 
(FC+VC 
4
which of the following are factors of production
 
land labor, capital, entrepreneurship
5
a firms total variable cost will depend on
 
the prices of variable resourcesthe production techniques usedthe level of output
6
the change in total output associated with one additional unit of input is
 
the marginal physical product
7
marginal cost
 
is the change in total cost from producing  one additional unit  of output
8
the only cost which do not change with the rate of output are
 
fixed cost
9
cost of production that change with the rate of outputare
 
variable costs
10
a u shaped average total cost curve implies
 
first marginal cost below average total cost and then marginal cost above
11
to the economist total cost includes
 
explicit and implicit costs including a normal profit
12
economies of scale
 
explain why the average total costs decline as output increases in the long run
13
the price charged by a profit maximizing monopolist in the long run occurs
 
at a price on the demand curve above the intersection where mr=mc
14
under perfect competition  in the long run
 
both allocative and productive efficiency are achieved
15
which of the following is consistent with a competitive market
 
zero economic profit in the long run
16
if economic profits are used in a competitve market in  the long run 
 
additional firms will enter the marketthe market supply curve will shift to the rightequilibrium...
17
examples of barriers to entry include
 
patents
18
in the long run competitive equilibrium prices tend to fall tot he minimum of the firms long...
 
average total cost curve
19
the demand curve confronting a competitive firm is
 
horizontal while the market demand is downward sloping
20
the essential characteristic of a perfectly competitive firm is that
 
it is a price taker
21
for  competitive firms
 
price is equal to marginal revenue
22
the law of diminishing returns states that beyond some point ceteris paribus
 
the marginal physical product of a factor of production diminishes as more of that factor is...
23
diminishing returns are the result of 
 
a rising ratio of variable input to fixed input
24
short runs profits are maximized at the rate of output where 
 
marginal revenue is equal to marginal cost
25
at the profit maximizing output for a competitive firm
 
marginal cost=price
26
the marginal cost curve 
 
will be affected by changes in the price of factor inputs
slopes upward to the right as...
27
a competitive firm should expand output when
 
P>MC
28
WHICH OF THE FOLLOWING IS A CHARACTERISTIC OF A PERFECTLY COMPETITIVE MARKET
 
ZERO ECONOMIC PROFIT IN THE LONG RUN
29
IN THE LONG RUN COMPETITIVE EQUILIBRIUM MARGINAL COST 
 
EQUALS THE MINIMUM OF THE ATC
30
THE COMPETITIVE FIRM SHOWN IN THE ADJACENT GRAPH
 
SHORT RUN TAKING A LOSS
31
P=MC FOR FIRMS ONLY IN
 
PERFECTLY COMPETITIVE MARKETS
32
IF A FIRM DECIDES TO PRODUCE NO OUTPUT IN THE SHORT RUN ITS COST WILL BE 
 
ITS FIXED COSTS
33
WHICH OF THE FOLLOWING IS CORRECT
 
A PURELY COMPETITIVE FIRM IS A PRICE TAKER WHILE A MONOPOLIST IS A PRICE MAKER
34
THIS FIRM IN THE THE THE GRAPH IS AN
 
PERFECTLY COMPETITIVE MARKET JUST BREAKING EVEN
35
ALL NATURAL MONOPOLY OCCURS WHEN
 
LONG RUN AVERAGE COSTS DECLINE CONTINUOUSLY THROUGH THE RANGE OF DEMAND
36
WITH RESPECT TO THE PURE MONOPOLIST S DEMAND CURVE IT CAN BE SAID THAT 
 
PRICE EXCEEDS REVENUE AT ALL OUTPUTS GREATER THAN 1
37
A MARKET WITH ONLY THREE OR FOUR DOMINANT FIRMS IS CALLED AN 
 
OLIGOPOLY
38
A MARKET MADE UP OF MANY FIRMS EACH OF WHICH HAS SOME DISTINCT BRAND IMAGE IS CALLED
 
MONOPOLISTIC COMPETITION 
39
TH OPPORTUNITY COST OF WORKING IS THE 
 
VALUE OF LEISURE TIME THAT MUST BE GIVEN UP
40
THE MARGINAL REVENUE PRODUCT OF LABOR IS 3 UNITS PER HOUR  PRODUCT PRICE IS CONSTANT AT...
 
AN ADDITIONAL UNIT OF LABOR SHOULD BE EMPLOYED
41
WHICH OF THE FOLLOWING AFFECTS THE DEMAND OF LABOR
 
THE PRODUCTIVITY OF WORKERS
42
A FIRM SHOULD HIRE WORKERS UNTIL THE
 
MRP IS EQUAL TO THE WAGE RATE
marginal revenue product
43
AN UPWARD SLOPING SUPPLY CURVE OF LABOR INDICATES
 
SUPPLY OF LABOR AND THE WAGE RATES ARE DIRECTLY RELATED
44
DEFINE THE TERM  DERIVED DEMAND 
 
THE DEMAND FOR LABOR AND OTHER FACTORS OF PRODUCTION RESULTS FROM (DEPENDS ON) THE DEMAND FOR...


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