question archive For a competitive firm, it should shut down if:(1 Point) P > ATC
For a competitive firm, it should shut down if:(1 Point) P > ATC
Subject:EconomicsPrice: Bought3
For a competitive firm, it should shut down if:(1 Point)
P > ATC.
P > AVC.
P < ATC.
P = ATC.
P < AVC.
2
In firm's production theory, the distinction between long run and short run is(1 Point)
three months, or one business quarter.
the time it takes for firms to change all inputs in the production process.
the time it takes for firms to change only their variable inputs.
More information is required to answer this question.
3
James owns a small pottery factory. He can make 1,000 pieces of pottery per year and sell them for €100 each. It costs James €30,000 for the raw materials to produce the 1,000 pieces of pottery. He has invested €100,000 in his factory and equipment: €50,000 from his savings and €50,000 borrowed at 10 per cent. (Assume that he could have loaned her money out at 10 per cent, too.) James can work at a competing pottery factory for €40,000 per year. The economic profit at James pottery factory(1 Point)
€65,000.
€35,000.
€20,000.
€30,000.
4
The following is cost information for the Creamy Crisp Donut Company:
Entrepreneur's potential earnings as a salaried worker = $50,000
Annual lease on building = $22,000
Annual revenue from operations = $380,000
Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Refer to the data. Creamy Crisp's economic profits are(2 Points)
$86,000.
$24,000.
$94,000.
$56,000
5
The marginal product of the second worker is(1 Point)
50 units of output.
24 units of output.
negative.
36 units of output.
6
Total economic profit is(1 Point)
total revenue minus total explicit cost.
marginal revenue minus marginal cost.
total revenue divided by total cost.
marginal revenue divided by marginal cost.
None of the options are correct
7
If you know that with 8 units of output, average fixed cost is $16.50 and average variable cost is $82.25, then total cost at this output level is:(1 Point)
$626s.
$970.
$750.
$880.
$790
8
Mr. Ali is running a medium scale business and found diminishing returns after a specific stage, he was worried because he used good amount of labor for better production. The reason of diminishing return in his production process is(1 Point)
The firm's production capacity extending
The firm use optimal production
The firm use some fixed inputs and some variable
None of the above is accurate
