Economics Perfect Competition

What is the goal of a firm?

• to make profits

• to maximize profits

• to maximize revenue

• none of the above

Total Revenue (minus) Explicit and Implicit cost =

• Accounting Profit

• Economic Profit

• Economic Cost

• Total Profit

Select all that apply: Rent would be an example of a

• Implicit cost

• Explicit Cost

• Variable cost

• Fixed cost

Fixed Costs are only fixed in the

• Long run

• Short run

• Period where there is neither a profit or a loss

• none of the above

A firm in the long run will make

• Losses

• Economic Profit

• Profits greater than MC

• none of the above

Marginal =

• Next

• Additional

• Profit

To find TC from ATC, you simply

• Multiply by the cost

• Divide by the quantity

• Multiply by the quantity

• Divide by the cost

MR =

• MC

• NC

• WC

• KFC

If a AFC curve is not present but AVC does not equal the ATC then

• you are in the short run

• you are in the long run

MC crosses the ATC and AVC

• where you draw it

• at its lowest point

• where MR=MC

• None of the above