Economics - Perfect Competition

The time frame in which the quantities of ALL factors of production can be varied is...

• Short run

• Long run

• Sunk Cost

• Medium Run

The total product is...

• Only the minimum quantity of labour

• The past expenditure on something that has no resale value

• The maximum output that a given quantity of labour can produce

The increase in total product that results from a 1 unit increase in the variable input, with all other inputs remaining the same is...

• Sunk Cost

• Marginal Product

• Average Product

The tendency for the marginal product of an additional unit of a factor of production to be less than the marginal product of the previous unit of the factor is...

• Diminishing marginal returns

• Long run

• Total Cost

A total fixed cost is ...

• The cost of all the productive resources that a firm uses

• The cost of a firm's fixed inputs

• The average product of a factor of production

The cost of all the firm's variable inputs is called...

• Total cost

• Very expensive

• Minimum cost

• Total variable cost

Features of a firm's technology that make average total cost fall as output increases - the LRAC curve slopes downward is....

• Economies of scale

• Economies of a city

• Long-run average cost curve

The minimum efficient scale is ...

• The largest output quantity at which the long-run cost reaches its highest level

• The smallest quantity of output at which the long-run average cost reaches its lowest level

• Technology that leads to constant long-run average cost output that increases

True or False?

The features of a firm's technology that make average total cost rise as output increases and the LRAC curve slopes upward is known as 'diseconomies of scale'?

• True

• False

True or False?

The features of a firm's technology that lead to constant long-run average cost as output increases when constant returns to scale are present and the LRAC curve is horizontal is known as 'constant returns to scale'?

• True

• False