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ECON 201 Exam 2 With Complete Solution
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ECON 201 Exam 2 With Complete SolutionIn economics, a firm that faces no competitors is known as _______________.
A. an oligopoly
B. a monopoly
C. a perfect competitor
D. an oligopolizor - Answer B. a monopoly
________________________ arises where many firms are competing in a market to sell
similar but differentiated products.
A. Oligopolistic competition
B. Perfect competition
C. Monopolistic competition
D. Monogopolised competition - Answer C. Monopolistic competition
A firm's ___________ consist of expenditures that must be made before production starts
that
are typically, in the short run, _______________ regardless of the level of production.
A. fixed costs; do not change,
B. variable costs; are constantly changing,
C. fixed costs; are consistently changing,
D. variable costs; do not change, - Answer A. fixed costs; do not change,
______________ include all of the costs of production that rise with the quantity
produced.
A. Fixed costs
,B. Variable costs
C. Average costs
D. Average variable costs - Answer B. Variable costs
___________________________ occur when the marginal gain in output diminishes as each
additional unit of input is added.
A. Diminishing variable returns
B. Diminishing average returns
C. Diminishing marginal returns
D. Diminishing marginal costs - Answer C. Diminishing marginal returns
In order to find ____________, the firm's total costs need to be divided by the quantity of
its output.
A. diminishing marginal returns
B. fixed costs
C. variable cost
D. average cost - Answer D. average cost
To find the firm's average variable cost, its variable costs are divided by
____________________.
A. its' fixed costs
B. the quantity of output
C. its' average costs
D. diminishing marginal costs - Answer B. the quantity of output
The term _____________ is used to describe the added cost of producing one more unit.
A. average cost
, B. fixed cost
C. variable cost
D. marginal cost - Answer D. marginal cost
The term __________________ refers to a situation where the quantity of output increases,
but
the average cost of production decreases.
A. diminishing marginal returns
B. marginal cost output
C. economies of scale
D. diseconomies of scale - Answer C. economies of scale
The term "constant returns to scale" refers to a situation where
A. increasing all inputs leaves the average cost of production unchanged.
B. a larger-scale firm is able to produce at a lower cost than a smaller-scale firm.
C. increasing all inputs alters the average cost of production.
D. the quantity of output increases and the average cost of production decreases. -
Answer A. increasing all inputs does not alter the average cost of production.
If a firm is facing _____________________, then as the quantity of output increases, the
average cost of production increases.
A. decreasing returns to scale
B. consent returns to scale
C. economies of scale
D. increasing returns to scale - Answer A. decreasing returns to scale
_____________ is calculated by taking the quantity of everything that is sold and
multiplying it by the sale price.
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