WorksheetsQUIZ LAB 5
Total questions: 10
Worksheet time: 10mins
Firm’s decision to operate or shut down in the short run depends on...
Total variable costs
Total fixed costs
Total costs
Average fixed costs
Average costs
When firms decide to shut down in the short run, it will bear losses equal to
Total variable costs
Total fixed costs
Total costs
Average fixed costs
Average costs
Economies of scale happen when a firm's expansion leads to...
Higher fixed costs
Lower fixed costs
Higher variable costs
Lower variable costs
Lower average costs
Firms are having ….. when an increase in input results in the same amount increase of output
Economies of scale
Decreasing return to scale
Increasing return to scale
Constant return to scale
Diseconomies of scale
Long run competitive equilibrium happens when...
P = SRMC = SRAC = LRAC, positive profits
P = SRMC = SRAC = LRAC, zero profits
SRAC = LRAC, positive profits
SRAC = LRAC, zero profits
P = SRAC = LRAC, zero profits
Pareto optimality is related to specific criteria used by economists to judge the performance of economic systems, that is..
Efficiency
Equity
Growth
Stability
Optimality
If the price of X exceeds its marginal costs, then society should…
Do nothing
Produce more X
Produce less X
Increase price of X
Decrease price of X
The choices below are assumptions of a perfect competition market, except…
Firms are price taker
Homogenous products
There’s barrier to entry
Perfect information
Large number of buyer and seller
General equilibrium is reached when equilibrium is established in ….. markets
Input market
Output market
Perfect competition market
Input and output market
Efficient market
Perfectly competitive firms will produce as long as ...
Price is greater than marginal costs
Explicit costs is greater than implicit costs
Long run costs is greater than short run costs
Explicit costs is lower than implicit costs
Earns accounting profits
