The term minimum efficient scale refers to:
a. the output corresponding to the minimum point of the short-run average-total-cost curve.
b. the total of all efficient points along the long-run average-cost curve.
c. the output corresponding to the highest point of the short-run average-total-cost curve.
d. the minimum point of the long-run average-cost curve, or the output level at which the cost per unit of output is the lowest.
e. the maximum point of the long-run average-cost curve, or the output level at which the cost per unit of output is the highest.
QUESTION 2For a perfectly competitive firm, average revenue is:
a. equal to marginal cost at all levels of output.
b. equal to marginal revenue at all levels of output.
c. equal to price at all levels of output.
d. characterized by both (b) and (c).
QUESTION 3The horizontal and vertical axes of the Lorenz curve respectively measure:
a. total income and total expenditure as cumulative percentages.
b. total income and total population as cumulative percentages.
c. total population and total expenditure as cumulative percentages.
d. total expenditure and total income as cumulative percentages.
e. total population and total income as cumulative percentages.
QUESTION 4If you have a comparative advantage in producing a good, it implies:
a. you have a lower marginal cost of producing that good.
b. you have a higher marginal cost of producing that good.
c. you have a lower total cost of producing that good.
d. you have a higher total cost of producing that good.
QUESTION 5As the confectionary, Mrs. Fields' Cookies, gained popularity in California and decided to expand its operations to Utah, it was able to achieve economies of scale. This means that:
a. property taxes were lower in its new location in Utah.
b. transport and communication systems were more developed in Utah.
c. wages were higher in Utah compared to California.
d. expansion of output and firm size led to specialization among the workers.
e. government policies were more favorable in Utah.
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