Economics- Short Quiz On Business Costs And Market Structure

10 Questions | By NorrisJ | Updated: Mar 22, 2022 | Attempts: 99

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A short quiz on selected topics.

Questions and Answers

1.

A business, in the long run, must have ______________to avoid shutdown.
- A.
  
  Employees
- B.
  
  Sales
- C.
  
  Good products
- D.
  
  Profit
2.

In the short run, businesses have...
- A.
  
  Fixed and variable costs.
- B.
  
  Revenue and losses.
- C.
  
  Redesign of products.
- D.
  
  Changing fixed expenses.
3.

Total Costs, in the short run, consists of...
- A.
  
  Revenue and expenses.
- B.
  
  Taxes and insurance.
- C.
  
  Fixed and variable costs.
- D.
  
  Government regulation- state and local.
4.

Total revenue is made up of...
- A.
  
  Sales minus expenses.
- B.
  
  Number sold times the price.
- C.
  
  Fixed and variable costs.
- D.
  
  Many unrelated items in the books.
5.

The law of diminishing marginal returns says that, at some point in the production process,
- A.
  
  Costs will begin to increase uncontrollably.
- B.
  
  Adding additional inputs will bring less additional output.
- C.
  
  Fixed costs will become variable costs.
- D.
  
  Your rent will increase.
6.

Marginal Cost is the added expense of...
- A.
  
  Increasing production to the maximum.
- B.
  
  Adding edges to your production site.
- C.
  
  Fixed costs.
- D.
  
  Producing one more unit of production.
7.

Which market structure has the most open "entry" into the business market?
- A.
  
  Perfect Competition.
- B.
  
  Monopolistic Competition.
- C.
  
  Oligopoly.
- D.
  
  Monopoly.
8.

The soft drink market is an example of which type of market structure?
- A.
  
  Perfect Competition.
- B.
  
  Monopolistic Competition.
- C.
  
  Oligopoly.
- D.
  
  Monopoly.
9.

Pepsico makes soft drinks, Frito Lay products, Quaker products, Pizza Hut, the Yum brands, Tropicana products, KFC, to name a few. It would be considered to be...
- A.
  
  A monopoly.
- B.
  
  A perfect competitor. a perfect competitor.
- C.
  
  An monopolistic competitor.
- D.
  
  An oligopolistic food conglomerate.
10.

When Pepsico added Dole pineapple to its products, and also owned Tropicana, this could be an example of...
- A.
  
  Horizontal expansion.
- B.
  
  Vertical expansion.
- C.
  
  Monopoly.
- D.
  
  Conglomerate expansion.