1. \"Opportunity cost\" is (Points : 2.5) the potential profit from a new ventur
ID: 1159687 • Letter: 1
Question
1. "Opportunity cost" is (Points : 2.5) the potential profit from a new venturewhat the resource could earn in the highest paying alternative use
the amount of profit a firm is losing by not maximizing its profit
what a resource is being paid in its current use
none of the above Question 2.2. In the rational range of a production function, as use of the variable input increases, (Points : 2.5) total product decreases
marginal product decreases but is positive
total product increases at an increasing rate
average product increases at a decreasing rate
none of the above. Question 3.3. A production function describes the relationship between units of a variable input used in combination with a bundle of fixed factors and (Points : 2.5) marginal physical product
total product
value of the total product
marginal cost
none of the above Question 4.4. A difference between economic profits and accounting profits would arise in the case of (Points : 2.5) production efficiency
taxes paid
hired labor
land rent paid
opportunity cost Question 5.5. Output per unit of the fixed factor of production is called (Points : 2.5) average product
total product
total fixed cost
marginal cost
average fixed cost Question 6.6. Which of the following is NOT an assumption of perfect competition? (Points : 2.5) large number of buyers
large number of sellers
perfect knowledge
differentiated product
ease of entry Question 7.7. At the initial phase (i.e., at the lowest output levels) of a production function, output (Points : 2.5) increases at a decreasing rate
decreases at an increasing rate
decreases at a decreasing rate
increases at an increasing rate
is constant Question 8.8. For a perfectly competitive, profit maximizing firm, an increase in the fixed costs, ceteris paribus, would cause the (Points : 2.5) firm to use less of the variable input
price of the product to increase
firm to increase production to cover the additional costs
profits of the firm to fall
firm to reduce its output level Question 9.9. At prices above the shut-down price, (Points : 2.5) the firm will produce
the firm will always earn economic profits
the firm will always suffer economic losses
the firm will shut down
none of the above Question 10.10. If the price of the product increases, ceteris paribus, the profit maximizing firm will use ________ of the variable input and produce ________ of output.
(Points : 2.5) more; more
the same amount; the same amount
less; less
more; less
none of the above 1. "Opportunity cost" is (Points : 2.5) the potential profit from a new venture
what the resource could earn in the highest paying alternative use
the amount of profit a firm is losing by not maximizing its profit
what a resource is being paid in its current use
none of the above
Explanation / Answer
1) Ans is B. Opportunity cost is the second best alternate forgone
2) ans is B. In second stage/ rational stage MP is positive but decreases and TP increases at a decreasing rate
3)ans is B. Production function is a technical relationship between input and output.
4)ans is E. Opportunity cost is the part of internal cost
5)ans is A. Average product is the ratio of total product/No. Of worker
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.