#1
Which of the following represents the relationship between output and inputs in the short run?
Total cost curve
Average fixed cost curve
Marginal cost curve
Total product curve
#2
In economics, 'marginal cost' refers to:
The total cost of producing one additional unit of output
The cost of the last unit of output produced
The average cost of all units produced
The fixed cost of production
#3
The term 'marginal product' refers to the:
Total output produced
Additional output produced by one more unit of input
Average output per unit of input
Total output per unit of input
#4
Which of the following represents the relationship between marginal product and total product?
Total product curve
Average product curve
Total cost curve
Marginal cost curve
#5
What is the relationship between total cost and total variable cost?
Total variable cost is a part of total cost
Total cost is a part of total variable cost
Total cost equals total variable cost
There is no relationship between them
#6
Which of the following is a characteristic of a perfectly competitive market?
High barriers to entry
Firms are price takers
Products are highly differentiated
Firms have significant control over prices
#7
Which of the following represents the relationship between average product and marginal product?
Average product equals marginal product
Average product is always greater than marginal product
Average product is always less than marginal product
There is no consistent relationship between them
#8
In the long run, all costs are:
Fixed
Variable
Opportunity
Sunk
#9
Economies of scale occur when:
Average total cost decreases as output increases
Marginal cost decreases as output increases
Total cost remains constant as output increases
Average variable cost decreases as output increases
#10
What happens to average variable cost as output increases in the short run?
It decreases initially, then increases
It increases initially, then decreases
It remains constant
It increases continuously
#11
What is the relationship between marginal cost and average variable cost?
Marginal cost is always greater than average variable cost
Marginal cost is always less than average variable cost
Marginal cost equals average variable cost
There is no consistent relationship between them
#12
What is the main objective of cost minimization for a firm?
To maximize revenue
To minimize total cost
To minimize average cost
To maximize profit
#13
In the long run, a firm will continue to produce output as long as:
Marginal cost is less than average variable cost
Marginal cost is less than average total cost
Marginal revenue is less than marginal cost
Price is less than marginal cost
#14
What is the relationship between marginal cost and average total cost?
Marginal cost is always greater than average total cost
Marginal cost is always less than average total cost
Marginal cost equals average total cost
There is no consistent relationship between them
#15
Which of the following is NOT a characteristic of perfect competition?
Many buyers and sellers
Homogeneous products
Firms can easily enter or exit the market
Firms have control over prices
#16
What does the law of diminishing marginal returns state?
As more units of a variable input are added to fixed inputs, marginal product eventually increases
As more units of a variable input are added to fixed inputs, marginal product eventually decreases
As more units of a variable input are added to fixed inputs, total product eventually decreases
As more units of a variable input are added to fixed inputs, total product eventually increases
#17
Which of the following is NOT a factor of production?
#18
What is the difference between explicit and implicit costs?
Explicit costs are monetary costs, while implicit costs are opportunity costs
Implicit costs are monetary costs, while explicit costs are opportunity costs
Explicit costs are incurred in the long run, while implicit costs are incurred in the short run
Implicit costs are incurred by firms, while explicit costs are incurred by consumers
#19
In a monopolistically competitive market, firms have some control over price due to:
Perfect information
Product differentiation
Barriers to entry
Homogeneous products