Chapter 2.3 Quiz

Marginal benefit measures the advantages of producing one additional unit of a good

• True
• False

A company that controls all of a market...

• cannot exist in a market economy
• has a monopoly 
• must compete for business
• has an oligopoly

if an entrepreneur's variable cost for each unit produced is $1.35, how much would the fixed cost increase if 30 additional units were demanded each day?

• $202.50 per week
• $40.50 per week
• $40.50 per day
• none of these

the supply curve for a market economy shows that as the price of a good or service rises, suppliers are willing to produce more of the good or service

• True 
• False

The price at which the supply and demand curves for a good or service intersect is the equivalent price

• True 
• False

When there are many different suppliers producing similar goods 

• there is a monopoly 
• there is no competition
• buyers can shop  around for the best deal
• supply will never equal demand

When the quantity of a good or service produced increases, variable costs remain the same

• True 
• False

At the equilibrium price, supply is...

• at its highest point
• at a minimum
• greater than demand
• equal to demand

Fixed costs must be paid even if a company has no sales.

• True
• False

A demand curve shows that the quantity consumed 

• is not affected by price
• increases as price decreases
• increases as price increases
• decreases as price decreases