Raj opens up up a lemonade was standing for two hours. He spends $10 because that ingredients and also sells $60 worth of lemonade. In the very same two hours, he can have mowed his neighbor"s lawn because that $40.Raj has actually an bookkeeping profit of _____ and also an financial profit the ____.

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Diminishing marginal product explains why, as a firm"s calculation increases,A) the production role and complete cost curve both gain steeper.B) the production function and full cost curve both obtain flatter.C) the production duty gets steeper, while the total cost curve gets flatter.D) the production role gets flatter, while the full cost curve gets steeper.
A firm is creating 1,000 units at a total cost the $5,000.If it to be to rise production come 1,001 units, its total cost would climb to $5,008. What does this information tell you around the firm?A) Marginal price is $5, and also average variable cost is $8.B) Marginal expense is $8, and average variable cost is $5.C) Marginal price is $5, and average full cost is $8.D) Marginal expense is $8, and average complete cost is $5.
A for sure is producing 20 units through an average complete cost the $25 and also marginal price of $15.If the firm to be to rise production to 21 units, i m sorry of the following must occur?A) Marginal price would decrease.B) Marginal expense would increase.C) Average complete cost would certainly decrease.D) Average full cost would increase.
The federal government imposes a $1,000 per year license fee on every pizza restaurants.Which expense curves change as a result?A) Average total cost and also marginal cost.B) Average complete cost and average solved cost.C) typical variable cost and also marginal cost.D) typical variable cost and average solved cost.
If a higher level that production permits workers to specialization in details tasks, a certain will most likely exhibit ________ that scale and also ________ average total cost.A) economies, fallingB) economies, risingC) diseconomies, fallingD) diseconomies, rising
In the ice-cream market in the short run, ______ includes the price of cream and sugar but not the cost of the factory.
What is the opportunity price of something?A) The cost to create itB) What must be offered up to gain itC) What you pay for itD) the time it bring away to perform something
Your present level of production is 600 devices, every one of which have actually been sold. Who calls, no hope to buy among your music players. The caller provides you $550 because that it.True or False: You have to accept the offer.
Which that the complying with policy alternatives might many effectively enable the government to accomplish its objectives in this situation?A) manage the firm"s pricing behavior.B) use antitrust legislations to rise competition.C) carry out nothing at all.D) rotate the firm into a windy enterprise.
Entry that a brand-new firm imposes a an adverse externality on currently firms since this causes other this firm to shed customers and also profit.
Entry of a new firm conveys a optimistic externality on consumers due to the fact that they obtain some consumer surplus native the introduction of a new product.
Which the the following statements around expenditures on proclaiming is true?A) when a for sure spends a large amount that money top top advertising, advertising deserve to be construed as a signal the quality.B) as soon as a firm spends a small amount of money top top advertising, this signals that the quality of the an excellent is high.C) If a firm knows its product is of short quality, it will be willing to spend large amounts the money top top advertising.
Which of the complying with is a reason advertising can be economically wasteful?A) The most reliable advertising is an extremely expensive and, therefore, wasteful.B) Advertising provides consumers with price and also quality information about products.C) declaring manipulates people"s tastes and can mitigate competition.

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The crucial feature of an oligopolistic market is thatA) each firm produce a various product from other firms.B) a single firm choose a allude on the market need curve.C) each firm take away the industry price as given.D) a small number of firms space acting strategically.
only a couple of sellers; interdependent on one another; ex: tennis balls (Wilson, Penn, Dunlap, Spalding)
If an oligopolistic market organizes itself as a participating cartel, the will create a amount of output that is ________ the competitive level and also ________ the monopoly level.A) less than, more thanB) an ext than, less thanC) much less than, equal toD) same to, more than
If an oligopoly does no cooperate and also each firm choose its own quantity, the industry will create a amount of calculation that is ________ the competitive level and ________ the monopoly level.A) much less than, an ext thanB) more than, much less thanC) less than, same toD) equal to, more than
a case in which economic actors communicating with one another each choose their finest strategy given the strategies the others have chosen
As the variety of firms in one oligopoly grows large, the sector approaches a level of calculation that is ________ the competitive level and also ________ the monopoly level.A) much less than, an ext thanB) an ext than, much less thanC) less than, equal toD) same to, an ext than
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