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Unformatted text preview: A firm will begin to experience diminishing returns at the point where (Points : 1) marginal cost increases. marginal cost decreases. marginal product increases. Both B and C 2. In the short run, (Points : 1) all firms that earn a loss will shut down. if current firms are earning a profit, new firms will enter the industry. firms act to minimize losses or maximize profits. All of the above are correct . 3. Total revenue minus total cost is equal to (Points : 1) the rate of return. marginal revenue. profit. net cost. 4. There are 100 dog kennels in Atlanta. An economist studying the pricing behavior of dog kennels tells you that she is limiting her analysis to a time period that does not allow for any new dog kennels to enter the industry or for any established...
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This note was uploaded on 03/23/2012 for the course ACCT 306 taught by Professor Mikewoodard during the Spring '12 term at DeVry Houston.
- Spring '12