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Chapter 5 - Production Costs

Chapter 5 - Production Costs - Practice Test Microeconomics...

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Page 1 of 24 Practice Test Microeconomics: Theory and Policy Chapter 05: Production Costs B. Modjtahedi UCD Students: Ignore the questions about average costs (yellow highlights) Question 1 The minimum a producer would accept for a unit of a product equals: A. The marginal cost of acquiring it. B. The explicit cost of producing it. C. The implicit cost of producing it. D. All of the above. E. None of the above. Question 2 When the decision is to produce and sell something, the marginal cost is: Question 3 A laptop producer is willing to receive no less than $500 for the next unit sold. This is because: Question 4 Economists assume that the objective of a typical firm is to: Question 5 Total profit earned by a firm over a certain period of time is generally defined as: A. Total revenue minus total cost. B. Total cost minus total revenue. C. Price minus marginal cost. D. Price minus average cost. E. None of the above. Question 6 What is the marginal benefit to a firm of producing and selling the next unit of output?
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