which of the following best defines OC?

• it is the cost of producing those goods most desired by a given economy

• it is the cost of the input mix that will lead to the greatest rate of growth for a given company

• is it the amount of one product that must be given up in order to produce an additional unit of another product

• it is the use of the least-cost method of production

which of the following explains why a PPC is often represented as concave (bowed out) from the origin?

• the law of demand

• constant returns to scale

• decreasing OC

• increasing OC

assume that consumers consider popcorn and pretzels to be subs. a significant decrease in the supply of popcorn will affect the pretzel market by

• increasing the demand for pretzels and therefore the supply of pretzels

• increasing the demand for pretzels and therefore the price of pretzels

• decreasing the demand for pretzels and therefore the price of pretzels

• increasing the supply for pretzels and therefore the price of pretzels

in the market depicted in the diagram above (4/2012), if the government imposes a price ceiling of $1.00 per gallon on gasoline, which of the following will result?

• a surplus of 6 bill gallons

• a shortage of 6 bill gallons

• a surplus of 12 bill gallons

• a shortage of 12 bill gallons

• neither a surplus nor a shortage, bcz the price ceiling would not be effective

assume that Clark spends his entire income on the purchase of two goods, X and Y. if his income and the P of good X and Y all double, Clark will

• double the purchase of goods X and Y

• buy more of good X and less of good Y

• buy less of good X and more of good Y

• buy the same amounts of goods X and Y

suppose that a firm begins to hire workers for a newly completed plants with a fixed amount of machinery. as the firm hires additional workers, one would expect the marginal product to

• fall initially but eventually rise

• rise initially but eventually fall

• rise consistently due to diminishing return

• rise consistently due to the ads of specialization

in the SR, which of the following costs must continuously decrease as output produced increases

• total variable cost

• total fixed cost

• AVC

• AFC

• ATC

if the firm produces 10 units of output, its economic profits will equal (8/2012)

• 0

• 50

• 100

• 150

which of the following is most likely to occur if the firm increases production beyond 10 units (9/2012)

• consumers would be willing to purchase more than 10 units at the price of $20 per unit

• the firm would definitely experience a loss

• the firm would have to lower its price to sell more than 10 units

• the firm's average cost of production would initially increase

• the firm profits would increase

which of the following statements about a constant-cost perfectly competitive industry in long-run equilibrium must be true

• an increase in demand will cause no change in the long run E price

• an increase in demand will cause no change in the long run E quantity

• the long run S curve is upward sloping

• the long run S curve is perfecly inelastic

• the total cost of production remains the same as output increases