Final Exam Review - Economics

Which of the following is a possible cause of diseconomies of scale?

• similar businesses in the area

• easy access to suppliers

• greater distance between senior staff and shop floor workers

• abundance of skilled labour

What of the following is a feature of a monopoly?

• There is plenty of competition

• Price is set freely by the consumers

• The product sold is unique

• There are very few barriers to entry

The term "economies of scale" refers to ...

• the average costs of production decreasing as a firm expands

• the average costs of production rising as a firm expands

• the average costs of production remaining the same as a firm expands

• the average costs of production at first decreasing, then increasing, as a firm expands

A market dominated by a few large firms is called:

• Oligopoly

• Labour Market

• Monopoly

• Government intervention

Total Costs / Quantity = _____

• Marginal Cost
• Average Total Cost
• Implicit Cost
• Explicit Cost

Change in Total Revenue/Change in Quantity
ΔTR/ΔQ = _____

• Marginal cost
• Marginal Revenue
• Profit
• Marginal Profit

 Total Revenue - Total Cost = _____

• Profit/Loss

• Revenue
• Marginal Revenue
• Variable Revenue

Costs that do not change when the quanity of output produced changes?

• Fixed Costs
• Variable Costs
• Explicit Costs
• Implicit Costs

The market value of all the inputs a firm uses in production.

• Implicit Costs
• Explicit Costs
• Total Costs
• Marginal Costs

Time period in which one of the costs is fixed?

• Long Run
• Short Run