Which product it most likely to be price elastic? milk housing clothing automobi

Question

Which product it most likely to be price elastic? milk housing clothing automobiles One major advantage of the limited liability associated with the ownership of corporate stock is that: stock ownership is not subject the free rider problem. stock ownership is not associated with the exclusion principle. stock ownership creates unlimited profit sharing among the firm's owners. the personal assets of stockowners are protected from liability claims. Economic costs can best be defined as: any contractual obligation that results in a flow of money expenditures from a business to its resource suppliers. any contractual obligation to labor or material suppliers. compensation which must be received by resource owners to assure their continued supply of the resource all costs exclusive of payments to fixed factors of production. Normal profit is: determine by subtracting implicit costs from total revenue. determine by subtracting explicit costs from total revenue. the return to the entrepreneur. the average profitability of an Industry over the preceding 10 years. The basic characteristic of the short-run is that: barriers to entry prevent new firms from entering the Industry. the firm does not have sufficient time to change the sue of its plant. the firm does not have Sufficient time to cut Its rate of output to zero. the firm does not have time to change the amount of any of the resources it uses. The basic difference between the short run and the long run is that: all costs are fixed in the short run, but all costs are variable in the long run. the law of diminishing returns applies in the short run but not in the long run. at least one resource Is fixed In the short run, while all resources are variable in the long run. economies of scale may be present in the short run, but not in the long run. Marginal cost can be described as the: rate of change in total fixed costs that results from producing one more unit of output. change in total cost that results from producing one more unit of output. change in average variable cost that results from producing one more unit of output. change in average total cost that results from producing one more unit of output. Average fixed cost: equals marginal cost when average total cost is at its minimum. may be found for any output by adding average variable cost and average fixed cost together. graphs as a U-shaped curve. declines continually as output increases.

Explanation / Answer

1.Which product is most likely to be price elastic?

D. Automobiles

2.One major advantage of the limited liability associated with the ownership of corporate stock is that:

D. The personal assets of stockowners are protected from liability claims.

3. Economic costs can best be defined as:

C. compensation which must be received by resource owners to assure their continued supply of the resource.

4. Normal Profit Is:

C. the return to the entrepreneur when economic profits are zero.

5. the basic characteristics of the short run is that:

B. the firm does not have sufficient time to change the size of its plant

6. the basic difference between the short run and long run is that

C. at least one resource is fixed in the short run, while all resources are variable in the long run.

7. Marginal cost can be described as the:

B. change in total cost that results from producing one more unit of output.

Marginal cost can also be defined as the change in total variable cost resulting from a one unit change in output, because the only part of total cost that rises with output is variable cost.

8. Average fixed cost:

D. declines continually as output increases

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