90%(21)19 out of 21 people found this document helpful
This preview shows page 6 - 9 out of 12 pages.
QUESTION:13[QUESTION BANK ID:54588]TYPE:MULTIPLE CHOICECORRECTAs a manufacturer increases output, which of the following costs should decrease?<< HIDE ANSWERSAAverage total costBAverage fixed costCMarginal costDAverage variable costQUESTION:14[QUESTION BANK ID:110594]TYPE:MULTIPLE CHOICECORRECT
How much of a good will consumers who wish to maximize their net benefit (value less cost) purchase?<< HIDE ANSWERSQUESTION:15[QUESTION BANK ID:130030]TYPE:MULTIPLE CHOICECORRECTIf the market for a certain product experiences an increase in demand, which of the following results is expected to occur?<< HIDE ANSWERSQUESTION:16[QUESTION BANK ID:41576]TYPE:MULTIPLE CHOICECORRECTWhat is the definition of market equilibrium?<< HIDE ANSWERS
QUESTION:17[QUESTION BANK ID:89965]TYPE:MULTIPLE CHOICECORRECTA brewery is considering two potential production investments. Option A costs an initial $2 million and will involve constant marginal cost of $5 Option B costs an initial $4 million and will involve constant marginal cost of $3 In order to make the calculations simple, assume that the annual capital cost is 10% of the total investment. At what production quantity per year would the brewery be indifferent between these two investment opportunities?<< HIDE ANSWERSA20,000B100,000C200,000D150,000QUESTION:18[QUESTION BANK ID:62803]TYPE:MULTIPLE CHOICECORRECTA pencil manufacturer is in a perfectly competitive market. The firm can sell as much as it wants at a price of $1.50 per pencil. At some production levels, its average variable costs are less than $1.50, but there is no production level where its average total cost is equal or less than $1.50. What would be your recommendation to the pencil manufacturer.<< HIDE ANSWERS