Ekonomi dan Organisasi Industri

Economists in the field of industrial organization study how ____

• central banking policies affect financial markets

• externalities and public goods affect the environment

• firms’ demand for labor and individuals’ supply of labor affect resource markets

• firms’ decisions about prices and quantities depend on market conditions

Peter owns a shoe-shine business. His accountant most likely includes which of the following costs?(i) shoe polish (ii) rent on the shoe stand (iii) wages Peter could earn delivering newspapers (iv) interest that Peter’s money was earning before he spent his savings to set up the shoeshine business

• (i), (ii), (iii), and (iv)

• (i) only

• (i) and (ii) only

• (iii) and (iv) only

Ryan sells 200 plastic pens at $0.50 each. His total costs are $25. His profits are _____

• $25

• $75

• $175

• $100

If the total cost curve gets steeper as output increases, the firm is experiencing _____ .

• increasing marginal product

• economies of scale

• diminishing marginal product

• diseconomies of scale

The average-total-cost curve is unaffected by diminishing marginal product.

• True

• False

Which of the following statements is correct?

• Assuming that explicit costs are positive, economic profit is greater than accounting profit.

• Assuming that explicit costs are positive, accounting profit is equal to economic profit.

• Assuming that implicit costs are positive, economic profit is positive.

• Assuming that implicit costs are positive, accounting profit is greater than economic profit

When a firm is making a profit-maximizing production decision, which principle is most important?

• The cost of something is what you give up to get it.

• A country's standard of living depends on its ability to produce goods and services.

• Governments can sometimes improve market outcomes.

• Prices rise when the government prints too much money.

Economists normally assume that the goal of a firm is to ______ .

• (i) sell as much of its product as possible.

• (ii) set the price of the product as high as possible.

• (iii) maximize profit.

Which of the following expressions is correct?

• economic profit = total revenue - implicit costs

• accounting profit = total revenue - implicit costs

• economic profit = accounting profit + explicit costs

• accounting profit = economic profit + implicit costs

Analyzing the behavior of the firm enhances our understanding of _____ .

• how consumers allocate their income to purchase scarce resources

• how financial institutions set interest rates

• what decisions lie behind the market supply curve

• whether resources are allocated fairly