#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
One seller and many buyers
Few buyers and few sellers
One buyer and one seller
#2
What does the term 'opportunity cost' refer to in economics?
The cost of a particular good or service
The cost of choosing one alternative over another
The total cost of production
The cost of labor
#3
What is a characteristic of a monopolistic competition market structure?
Many buyers and many sellers
One seller and many buyers
Few buyers and few sellers
One buyer and one seller
#4
Which of the following is a characteristic of a perfectly elastic demand curve?
The demand curve is horizontal
The demand curve is vertical
The demand curve is upward sloping
The demand curve is downward sloping
#5
Which of the following is a characteristic of a monopolistic market structure?
Many buyers and many sellers
One seller and many buyers
Few buyers and few sellers
One buyer and one seller
#6
In economics, what does the law of diminishing marginal returns state?
Total output always decreases
Additional inputs lead to decreasing additional outputs
Marginal costs decrease as production increases
Marginal costs increase as production increases
#7
What is the formula to calculate average fixed cost (AFC)?
Total fixed cost divided by quantity produced
Total variable cost divided by quantity produced
Total cost divided by quantity produced
Quantity produced divided by total fixed cost
#8
In the long run, what happens to all inputs in the production process?
All inputs are variable
All inputs are fixed
Some inputs are variable and some are fixed
None of the above
#9
What is the relationship between marginal product (MP) and total product (TP) when MP is decreasing?
MP equals TP
MP is less than TP
MP is greater than TP
MP intersects TP
#10
In economics, what is the formula for calculating total cost (TC)?
TC = AFC + AVC
TC = ATC * Q
TC = TFC + TVC
TC = MC * Q
#11
What is the primary factor that determines the shape of the long-run average cost curve?
The law of diminishing returns
The presence of economies of scale
The level of fixed costs
The size of the market
#12
Which of the following represents economies of scale?
Average total cost decreases as output increases
Average variable cost increases as output increases
Average fixed cost remains constant as output increases
Total cost increases at a decreasing rate as output increases
#13
What is the relationship between marginal cost (MC) and average total cost (ATC) when MC is below ATC?
MC equals ATC
MC is less than ATC
MC is greater than ATC
MC intersects ATC
#14
When does a firm experience diseconomies of scale?
When average total cost decreases as output increases
When average variable cost increases as output increases
When average fixed cost remains constant as output increases
When total cost increases at an increasing rate as output increases
#15
What does the concept of 'marginal analysis' involve?
Analyzing changes in total costs
Comparing the benefits of one additional unit with its additional cost
Studying the relationship between fixed and variable costs
Calculating average costs at different levels of production
#16
In economics, what is the relationship between average variable cost (AVC) and marginal cost (MC) when AVC is rising?
AVC equals MC
AVC is less than MC
AVC is greater than MC
AVC intersects MC
#17
What is the concept of 'diseconomies of scale' in production?
When average total cost decreases as output increases
When average variable cost increases as output increases
When average fixed cost remains constant as output increases
When total cost increases at an increasing rate as output increases