Category: Profit Maximizing Under Perfect Competition And Monopoly

A. Fixed costs are zero if the firms is producing nothing.
B. Fixed costs are the difference between total costs and total variable costs
C. There are no fixed costs in the long run
D. Fixed costs do not depend on the firm’s level of output

A. the efficient output level will be produced in the long run
B. firms will only earn a normal profit
C. firms realize all economies of scale
D. firms will be producing at minimum average cost

A. In monopolistic competition, there are too many firms and each firm produce a slightly different product at a scale that is less than optimal
B. In monopolistic competition there are too few firms and each firm produce a slightly different product at scale that is greater than optimal
C. in monopolistic competition there is the correct number of firm and each firm produces a slightly different product at an optimal scale.
D. In monopolistic competition there are too many firms and each firm produce a slightly different product at the optimal scale

A. the difference between total revenue and total costs.
B. anything greater than the normal opportunity cost of investing
C. the opportunity costs of all inputs
D. a rate of profit that is just sufficient to keep owners and investors satisfied

A. fixed costs exceed revenues.
B. it is suffering a loss.
C. variable costs exceed revenues
D. total costs exceed revenues

A. downward sloping to the right
B. U-shaped
C. Horizontal
D. upward sloping to the right

A. a concentrated industry.
B. a cartel
C. price leadership
D. an oligopoly.

A. decreasing average fixed costs.
B. decreasing marginal costs.
C. decreasing average variable costs.
D. increasing marginal costs.

A. Is the rate of return on investments over the interest rate on risk-free government bonds.
B. is the rate that is just sufficient to keep owners or investors satisfied.
C. is the difference between total revenue and total costs
D. is zero in a perfectly competitive industry.

A. expenditure set
B. isocost line.
C. budget constraint
D. isoquant