# Econ 101 (ch. 9)

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1. A firm with explicit costs of \$2,000,000, no implicit costs, and total revenue of \$3,000,000 would have:
C. an accounting profit and an economic profit of \$1,000,000
2. At which outpout is the firm operating most efficiently?
Where MC = ATC
3. The marginal cost curve intersects the ATC curve at its
A. minimum point, which is the break-even point
4. A profit-maximizing firm will increase production when
D. price exceeds marginal cost
5. The lowest point on a firm's short-run supply curve is at the
b. shutdown point
6. A firm will operate at that output where MC equals MR
c. both when it is maximizing its profits and when it is minimizing its losses
7. When marginal cost is rising, but is less than average total cost, we are definitely below the
b. break-even point
8. Which statement is true?
A. Accouting profits are greater than economic profits.
B. Accounting profits are euqal to economic profits.
C. Ecnomic profits are greater than accoutning profits.
A. Accouting profits are greater than economic profits.
(this multiple choice question has been scrambled)
9. Statement 1: Price is equal to total revenue divided by output. Statement 2: A firm never maximizes profits.
A. Statement 1 is true, and statement 2 is false.
B. Both statements are true.
C. Both statements are false.
D. Statement 2 is true, and statement 1 is false.
A. Statement 1 is true, and statement 2 is false.
(this multiple choice question has been scrambled)
10. If a firm is producing a level of output at which that output's marginal cost is less than the price of the good, ______
c. higher profits could be obtained with increased production
11. The firm's long-run supply curve runs along its _____ curve.
c. MC
12. A firm will operate at that output at which MC = MR _______
c. in both the short run and the long run
13. Statement 1: The firm's short-run supply curve runs up the marginal cost curve from the shutdown point to the break-even point.
Statement 2: The firm will not accept a price below the break-even pointin the short run.
A. Both statements are false.
B. Both statements are true.
C. Statement 2 is true, and statement 1 is false.
D. Statement 1 is true, and statement 2 is false.
A. Both statements are false.
(this multiple choice question has been scrambled)
14. A business firm is in the short-run _______
a. virtually all the time
15. If the price is between the shutdown point and the break-even point, the firm is in there __________
b. short run taking a loss
16. The most efficient output of a firm is located _______
b. at the break-even point
17. Which one of these markets would definitely not be perfectly competetive?
A. Foreign currency
B. The New York Stock Exchange
C. Wheat
D. HDTVs
D. HDTV's
(this multiple choice question has been scrambled)
18. Perfect competition is _________
b. probably impossible to find
19. Under perfect competition, _________
c. no firm has any influence over price
20. Under perfect competition, theere are ________
a. many firms producing an identical product
21. The perfect competitor is __________
b. a price taker rather than a price maker

### Card Set Information

 Author: Anonymous ID: 147474 Filename: Econ 101 (ch. 9) Updated: 2012-04-13 21:45:45 Tags: econ econ101 101 Folders: Description: chaper 9 workbook Show Answers:

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