The demand curve can be derived by: (A) Summarizing the quantities demanded at various prices. (B) Analyzing changes in consumer preferences. (C) Calculating income effects only. (... The demand curve can be derived by: (A) Summarizing the quantities demanded at various prices. (B) Analyzing changes in consumer preferences. (C) Calculating income effects only. (D) Examining the market supply curve. Economic profit is defined as: (A) Total revenue minus explicit costs. (B) Total revenue minus implicit costs. (C) Total revenue minus explicit and implicit costs. (D) Total costs minus accounting profit. Opportunity cost includes: (A) Only explicit costs. (B) Only implicit costs. (C) Both explicit and implicit costs. (D) Neither explicit nor implicit costs. Accounting profit differs from economic profit because: (A) It includes implicit costs. (B) It excludes implicit costs. (C) It includes opportunity costs. (D) It excludes explicit costs. The production function relates: (A) Inputs to total cost. (B) Inputs to outputs. (C) Revenue to profit. (D) Costs to revenue. Marginal cost is defined as: (A) Total cost divided by quantity produced. (B) The additional cost of producing one more unit of output. (C) Total variable cost minus fixed costs. (D) The cost of the first unit of output. Economies of scale occur when: (A) Long-run average total cost rises as output increases. (B) Long-run average total cost decreases as output increases. (C) Fixed costs rise with increased production. (D) Variable costs remain constant. Diseconomies of scale arise when: (A) Long-run average total cost increases with output. (B) Long-run average total cost decreases with output. (C) Fixed costs increase with production. (D) Variable costs decrease with production. The marginal cost curve intersects the average total cost curve at: (A) The minimum of the marginal cost curve. (B) The minimum of the average total cost curve. (C) The maximum of the average total cost curve. (D) The maximum of the marginal cost curve.
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The image contains a series of economics-related questions, primarily focusing on concepts like demand curves, economic profit, opportunity costs, production functions, and cost curves. Each question presents multiple-choice options that require an understanding of fundamental economic principles.
Answer
12. Summarizing the quantities at various prices. 13. Total revenue minus all costs. 14. Both explicit and implicit costs. 15. Excludes implicit costs. 16. Inputs to outputs. 17. Additional cost per unit. 18. Cost decreases with output. 19. Cost increases with output. 20. Minimum average total cost.
The answers are: 12. Summarizing the quantities demanded at various prices. 13. Total revenue minus explicit and implicit costs. 14. Both explicit and implicit costs. 15. It excludes implicit costs. 16. Inputs to outputs. 17. The additional cost of producing one more unit of output. 18. Long-run average total cost decreases as output increases. 19. Long-run average total cost increases with output. 20. The minimum of the average total cost curve.
Answer for screen readers
The answers are: 12. Summarizing the quantities demanded at various prices. 13. Total revenue minus explicit and implicit costs. 14. Both explicit and implicit costs. 15. It excludes implicit costs. 16. Inputs to outputs. 17. The additional cost of producing one more unit of output. 18. Long-run average total cost decreases as output increases. 19. Long-run average total cost increases with output. 20. The minimum of the average total cost curve.
More Information
The economic profit takes into account both explicit and implicit costs, contrasting it with accounting profit, which considers only explicit costs. The intersection of the marginal cost and average total cost curves is significant as it indicates the most efficient scale of production.
Tips
Common mistakes involve confusing accounting and economic profit. Remember that economic profit includes opportunity costs.
Sources
- Demand Curves: What Are They, Types, and Example - Investopedia - investopedia.com
- Profit Maximization and Supply – Intermediate Microeconomics - open.oregonstate.education
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