Concept economic profit 18 which of the following is

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CONCEPT Economic Profit 18 Which of the following is true about the long run average cost curve? The long run average cost curve is comprised of all the lowest points of each of the short run average cost curves because no firm will operate at a level of higher per-unit costs in the long run than in the short run. The long run average cost curve cannot be equal to or lie below any short run average cost curve because in the short run all factors of production can be variable. The long run average cost curve is shaped like a bell and rises because of economies of scale while falling because of diseconomies. The long run average cost curve can be found as the MC from above the shut down point onward.
CONCEPT Long-Run Supply Curve 19
Using the graph above, the firm is best served producing at __________.
CONCEPT Production Function and Constraints 20 Which of the following is true about marginal cost?
Marginal cost is the change in total cost that results from a single unit increase in the quantity produced. Marginal cost can be found at the intersection of a firm's budget constraints and production function. CONCEPT Cost: Total, Marginal and Average 21 Based on the descriptions below of different jobs Nancy has held, which would qualify as an oligopoly? Nancy was a customer service representative for the local water company. The company had exclusive rights to operate as the only company providing water to local residents since the costs to lay competing pipelines were a barrier to entry preventing competition. They were, however, regulated by the government. Nancy was a fruit vendor. In her market there were many buyers and sellers. It was easy and cheap to start a vendor stand. Everyone’s fruits were basically identical. Nancy was an administrative assistant for an oil company with very few other sellers. Other companies had trouble getting into the fossil fuel market. All the fossil fuel companies had the same information, but they had an information advantage over the buyers. Nancy was a telemarketer for a software company with many buyers and sellers. Everyone’s products were fairly unique, but it was very easy to enter the software market. One advantage Nancy’s company had was that it had an informational advantage over many other companies. CONCEPT Oligopoly © 2020 SOPHIA Learning, LLC. SOPHIA is a registered trademark of SOPHIA Learning, LLC. About Contact Us Privacy Policy Terms of Use

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