Pre-Test ISC UAS Ekonomika Pengantar I

At all levels of production beyond the point where the marginal cost curve crosses the average variable cost curve, average variable cost

• depends on the shape of the marginal cost curve

• rises

• remains unaffected

• falls

Assume that a given firm experiences fixed cost and decreasing marginal product of labor with the addition of each worker regardless of the current output level. Average variable cost will be

• U-shaped

• always rising

• constant

• always falling

A perfectly competitive market

• may not be in the best interests of society, whereas a monopoly market promotes general economic well-being

• and a monopoly market are equally likely to promote general economic well-being

• promotes general economic well-being, whereas a monopoly market may not be in the best interests of society

• is less likely to promote general economic well-being than a monopoly market

Profit-maximizing firms enter a competitive market when existing firms in that market have

• total revenues that exceed total variable costs

• average total costs that exceed average revenue

• average total costs less than market price

• total revenues that exceed fixed costs

Monopoly firms have

• downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve

• horizontal demand curves, so they can sell only a limited quantity of output at each price

• downward-sloping demand curves, so they can sell as much output as they desire at the market price

• horizontal demand curves, so they can sell as much output as they desire at the market price