Question 46 Total revenue minus both explicit and implicit costs is called accou

Question

Question 46

Total revenue minus both explicit and implicit costs is called

accounting profit.

economic profit.

average total cost.

total cost.

3 points   

Question 47

Which of the following firms is likely to have the greatest market power?

a farmer

a local electronics retailer

a grocery store

an electric company

3 points   

Question 48

If a monopolist can sell 7 units when the price is $4 and 8 units when the price is $3, then marginal revenue of selling the eighth unit is equal to

$4.

-$4.

$3.

$24.

3 points   

Question 49

If marginal cost is below average total cost, then average total cost

is constant.

is rising.

is falling.

may rise or fall depending on the size of fixed costs.

3 points   

Question 50

If the price elasticity of demand for a good is 1, then a 3 percent decrease in price results in a

3 percent increase in the quantity demanded.

1 percent increase in the quantity demanded.

0.1 percent increase in the quantity demanded.

4 percent increase in the quantity demanded.

accounting profit.

economic profit.

average total cost.

total cost.

Explanation / Answer

Question 46: - b) economic profit.

Question 47: - d) an electric company

Question 48: - b) -$4 [$28 - $32]

Question 49: - c) in falling

Question 50: - a) 3 percent increase in the quantity demanded.

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