Cost, revenue, profit and product

Front

Short run marginal costs eventually increase because of the effects of: increasing marginal product, diminishing marginal product, increasing fixed costs, diseconomies of scale

Back

diminishing marginal product

Front

At 100 units of output, a firm's total cost is $10,000. If the firm's total fixed cost is $4,000, what is its average variable cost?

Back

$60

Front

The most profitable level of output for any firm operating in the short run is the level of output at which:

Back

marginal revenue equals marginal cost

Front

If a new tax on capital increases a firm’s fixed cost of production, which of the following will occur in the short run? Average total cost will increase, Marginal cost will increase, Average variable cost will increase, The profit-maximizing level of output will increase

Back

Average total cost will increase

Front

An entrepreneur has earned enough total revenue to cover her accounting costs, but economic losses are being incurred. What must be true?

Back

Her accounting profits are less than her implicit costs.

Front

When total physical product is at its maximum, marginal physical product must be:

Back

equal to zero

Front

As output of a firm increases, the difference between the firm’s average total cost and its average variable cost gets smaller because the firm’s average fixed cost is decreasing.

Back

average fixed cost is decreasing

Front

At which quantity of labor does marginal cost change from decreasing to increasing? Options: L1, L2, L3, L5

Back

L2

Front

How much annual revenue must Shelby's advertising firm receive so that she earns zero economic profit?

Back

$125,000

Front

A firm produces 400 books and sells each book for $15. If the explicit cost of producing the books is $4,500 and the implicit cost is $1,000, what is the firm’s economic profit?

Back

$500