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WorksheetsCHAPTER 13
Total questions: 12
Worksheet time: 6mins
According to the law of supply,
A. Firms’ production levels are not correlated with the price of a good.
B. The supply curve slopes downward.
C. Firms are willing to produce a greater quantity of a good when the price of the good is higher
D. None of the above are correct.
Industrial organization is the study of how
A. Labor unions organize workers in industries.
B. Profitable firms are in organized industries.
C. industries organize for political advantage.
D. firms’ decisions regarding prices and quantities depend on the market conditions they face.
Economists normally assume that the goal of a firm is to
(i) sell as much of their product as possible.
(ii) set the price of their product as high as possible.
(iii) maximize profit.
A.(i) and (ii)
B. (ii) and (iii)
C. (iii) only
D. All of the above are correct.
The amount of money that a firm receives from the sale of its output is called
A. total gross profit.
B. total net profit.
C. Total revenue.
D. Net revenue.
The amount of money that a firm pays to buy inputs is called
A. total cost
B. variable cost.
C. marginal cost.
D. fixed cost.
Profit is defined as
A. net revenue minus depreciation.
B. total revenue minus total cost.
C. marginal revenue minus marginal cost.
Which of the following can be added to profit to obtain total revenue?
A. net profit
B. capital profit
C. operational profit
D. Average variable cost
E.total cost
Economists normally assume that the goal of a firm is to
(i) make profit as large as possible even if it means reducing output.
(ii) make profit as large as possible even if it means incurring a higher total cost.
(iii) make revenue as large as possible.
A. (i) and (ii)
B. (i) and (iii)
C. (ii) and (iii)
D. None of the above are correct
Total revenue equals
Total output multiplied by price per unit of output.
Total output divided by profit.
(Total output multiplied by sales price) – inventory surplus.
(total output multiplied by sales price) – inventory shortage.
Those things that must be forgone to acquire a good are called
Substitutes.
Opportunity costs.
Explicit costs
Competitors.
Explicit costs
Require an outlay of money by the firm.
Include all of the firm’s opportunity costs.
Include income that is forgone by the firm’s owners.
All of the above are correct.
To an economist, it is conceivable that the objective that motivates an individual entrepreneur to start a business arises from
An innate love for the type of business that he or she starts.
A desire to earn a profit.
an altruistic desire to provide the world with a good product
All of the above are correct.
