1. Firms exist for all but which one of the following reasons?;To reduce transactions costs;To produce things;To organize teams;To monitor shirking;To reduce the costs of buying;Question 2. Nonprofit firms, both private and governmental, may differ in behavior from profit-seeking private firms because;A) there is no residual claimant.;B) the demand for the products is inherently different.;C) government managers seek more capital-intensive means of production.;D) government firms are more difficult to manage.;E) private firms do not compete with government firms.;Question 3. The long-run decision is to select;the desired long-run AC curve.;the desired short-run AC curve.;the desired long-run MC curve.;the desired quantity of labor to go with fixed capital.;the plant size to go with the fixed quantity of labor.;Question 4. A firm exists to;make money.;organize information.;make resources.;transform inputs into marketable outputs.;transform products into commodities.;Question 5. Last spring, Coil Spring Co. reported that average fixed costs had increased, but average variable costs were unchanged. This indicates that;A) marginal costs are less than average variable cost but greater than average cost.;B) fixed costs have increased.;C) output is declining.;D) marginal costs have increased.;Question 6. In the short run;all inputs are variable.;some inputs are variable and some are fixed.;all inputs are fixed.;the time period cannot exceed one year.;Question 7. Which of the following is most likely to be an implicit cost of production?;Wages paid to skilled workers;Payments for inputs purchased from other companies;Interest paid on a loan;Rental income from real property;Rental income not received from use of a self-owned piece of land;Question 8. Ralph's Travel Agency had accounting profits of $50,000 and implicit costs of $30,000. What were economic profits?;$50,000;$30,000;$20,000;The amount cannot be determined from the information given.;Question 9. An example of a horizontally integrated firm is one that;owns several plants, each handling a different stage of production.;produces a variety of goods and sells them in widely disparate markets.;owns several plants, each manufacturing the same product.;owns several plants in the same state.;uses highly automated assembly line techniques.;Question 10. Because of diminishing marginal product in the short run, a tripling of the total product (assuming input prices are constant) requires;a tripling of marginal cost.;a tripling of total cost.;less than a tripling of total variable cost.;increased average fixed cost.;more than a tripling of total variable cost.
Paper#18104 | Written in 18-Jul-2015Price : $27