chap 7 econ

A ________ is an organization that combines inputs of labor, capital, land, and raw or finished component materials to produce outputs.

• Firm

• Private Enterprise

• Factor of Production

Explicit costs are out-of-pocket costs. Choose BOTH explicit costs below:

• Resources the owner contributes

• Wages

• Resources the firm already owns.

• Rent

Implicit costs are the opportunity cost of using resources that the firm already owns.

Choose BOTH implicit costs below:

• Using rooms of your home for offices

• Wages

• Rent

• Depreciation of company equipment

If a firm has $60,000 in total revenue with total costs of $54,000 what is the profit?

• $6,000

• $54,000

• $60,000

• $114,000

If a firm has $60,000 in total revenue with explicit costs of $30,000 and implicit costs of $20,000, what is the profit?

• $0

• $10,000

• $20,000

• $30,000

Many interchangeable lemonade stands all trying to sell lemonade is:

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Only one firm, like Standard Oil, selling oil with NO competition is:

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Many hotels selling similar (not identical) products represent:

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Few Social Media sites that sell identical or similar products:

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

7 scarves are sold for $11 each. $77 represents:

• Accounting Profit

• Economic Profit

• Revenue

• Implicit Costs