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  3. Liberty ECON 213 Quiz 9 Answers Complete Solutions

Contents

  • 1 Liberty ECON 213 Quiz 9 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
    • 1.1 STATUS
      • 1.1.1 Question 7
      • 1.1.2 Question 8
      • 1.1.3 Question 9
      • 1.1.4 Question 10
      • 1.1.5 Question 11
      • 1.1.6 Question 12
      • 1.1.7 Question 13
      • 1.1.8 Question 14
      • 1.1.9 Question 15
      • 1.1.10 Question 16
      • 1.1.11 Question 17
      • 1.1.12 Question 18
      • 1.1.13 Question 19
      • 1.1.14 Question 20

Liberty ECON 213 Quiz 9 Answers Complete Solutions

 

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Question 1

When marginal revenue equals marginal cost:

Question 2

Dave’s Batting Cages is located in Boston, Massachusetts. During the first year of operation, Dave’s Batting Cages incurred many costs. In that year, Dave spent $5,000 on labor, $2,000 on maintenance, and $1,000 on electricity. Dave took out a loan to open his business, in which he would have earned $1,500, and his previous job, which he could get back at any time, paid him $50,000. If Dave’s Batting Cages received $80,000 in revenues, what were the economics profits?

Question 3

An example of an implicit cost is:

Question 4

Total revenue minus total cost equals:

Question 5

If the shortrun market supply curve and the demand curve intersect above the longrun market supply curve, firms will experience _________ economic profits, meaning the price is _________ the minimum point on the average total cost curve.

Question 6

If the shortrun supply curve and the demand curve intersect below the longrun supply curve, firms will experience _________ economic profits, meaning the price is _________ the minimum point on the average total cost curve.

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Question 7

In the short run, a competitive firm may choose to operate at a loss:

Question 8

Which of the following lists the three main characteristics of a competitive market?

Question 9

If firms in a competitive market are making zero economic profits, the longrun market supply curve:

Question 10

The accompanying table represents the quantity produced, the total revenue, and the total cost of a firm operating in a perfectly competitive market. Refer to this table to answer the questions that follow.

Assuming that all firms have the same cost structure, the price is:

Question 11

According to the accompanying figure, the longrun market supply curve would be a horizontal line:

Question 12

Kimberly owns a cupcake shop in Newport Beach, California. The market for cupcakes is very competitive. At Kimberly’s current production level, her marginal cost is $25 and her marginal revenue is $29. To maximize profits, Kimberly should:

Question 13

According to the accompanying figure, if the price is $5, the firm is making

Question 14

Refer to the accompanying graph to answer the questions that follow.

If the firm is maximizing profits, total cost is represented by the area:

Question 15

An example of an explicit cost is:

Question 16

Refer to the accompanying figure. A firm would shut down in the short run if the price is:

Question 17

The accompanying table represents the quantity produced, the total revenue, and the total cost of a firm operating in a perfectly competitive market. Refer to this table to answer the questions that follow.

Profits are maximized when producing:

Question 18

When talking about economic profits in a perfectly competitive market, the difference between the long run and the short run is that, in the short run, firms:

Question 19

A farmer’s market is close to being a perfectly competitive market. Which characteristic of a perfectly competitive market do most farmer’s markets violate?

Question 20

If Nicole’s KnickKnacks is a perfectly competitive firm and is making zero economic profits:

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