Ch 9 & 10 JTCC Review

Front

Economic cost can best be defined as

Back

a payment that must be made to obtain and retain the services of a resource.

Front

An explicit cost is

Back

a money payment made for resources not owned by the firm itself.

Front

Which of the following is a short-run adjustment? A local bakery hires two additional bakers. Six new firms enter the plastics industry. The number of farms in the United States declines by 5 percent. BMW constructs a new assembly plant in South Carolina.

Back

A local bakery hires two additional bakers.

Front

Accounting profits equal total revenue minus

Back

total explicit costs.

Front

Based on the information about Maria’s Mexican Cantina, what can we conclude?

Back

has operated in the long run, even though it chose to keep the building input fixed.

Front

Implicit costs are

Back

opportunity costs of self-employed resources.

Front

The basic characteristic of the short run is that

Back

the firm does not have sufficient time to change the size of its plant.

Front

The amount of calendar time associated with the long run

Back

varies from industry to industry.

Front

In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies?
Options: pure monopoly, oligopoly, monopolistic competition, pure competition

Back

oligopoly

Front

An industry comprising 40 firms, each with about 2-3 percent of the total market for a differentiated product, is an example of

Back

monopolistic competition.