Which of the following is most likely to be a variable cost?

Question 7 of 19   5.0 Points
Marginal product is:

A. the increase in total output attributable to the employment of one more worker.   

B. the increase in total revenue attributable to the employment of one more worker.   

C. the increase in total cost attributable to the employment of one more worker.   

D. total product divided by the number of workers employed.



Question 8 of 19   5.0 Points
The law of diminishing returns indicates that:

A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.   

B. because of economies and diseconomies of scale a competitive firm's long-run average total cost curve will be U-shaped.   

C. the demand for goods produced by purely competitive industries is downsloping.   

D. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.

Post Merge: 11 years ago

Question 9 of 19   5.0 Points
Which of the following is most likely to be a variable cost?

A. fuel and power payments   

B. interest on business loans   

C. rental payments on IBM equipment   

D. real estate taxes


Question 10 of 19   5.0 Points
If average total cost is declining, then:

A. marginal cost must be greater than average total cost.   

B. the average fixed cost curve must lie above the average variable cost curve.   

C. marginal cost must be less than average total cost.   

D. total cost must also be declining.


Question 11 of 19   5.0 Points
The selling of stock is debt financing for a corporation.
 A. True
 B. False

Post Merge: 11 years ago

Question 12 of 19   5.0 Points
Average fixed costs diminish continuously as output increases.
 A. True
 B. False

Question 13 of 19   5.0 Points
Patents and copyrights were established by the government to reduce oligopoly and monopoly power.
 A. True
 B. False

Post Merge: 11 years ago

Question 14 of 19   5.0 Points
Prices in oligopolistic industries are predicted to fluctuate widely and frequently compared to other market structures.
 A. True
 B. False


Question 15 of 19   5.0 Points
The positive view of advertising suggests that it contributes to economic efficiency in the economy.
 A. True
 B. False


Question 16 of 19   5.0 Points
Price fixing is illegal under Section 1 of the Sherman Act.
 A. True
 B. False


Question 17 of 19   5.0 Points
Rent-seeking behavior refers to activities designed to transfer income or wealth to a particular firm or resource supplier at someone else's or society's expense.
 A. True
 B. False


Question 18 of 19   5.0 Points
A purely competitive firm is a price maker, but a monopolist is a price taker.
 A. True
 B. False