1. The level of an economic activity should be increased to the point where the

ID: 1177950 • Letter: 1

Question

1. The level of an economic activity should be increased to the point where the _________is zero.

A. marginal cost

B. average cost

C. total cost

D. marginal profit

2. If demand is elastic, a price cut:

A. Lowers total revenue, but increases the quantity sold.

B. Lowers total revenue, and lowers the quantity sold.

C. Raises total revenue, but lowers the quantity sold.

D. Raises total revenue, and raises the quantity sold.

3. Which of the following is NOT a source of Decreasing Returns to Scale.

A. Problem of coordination and control.

B. Entrepreneurial capacity and control.

C. Inflexibility.

D. Cannot make fast decisions.

E. Specialization in the use of capital and labor.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.