The question Can I make more money if I sell one more unit?

Questio Show more Question 1 (1 point) If the price elasticity of supply is less than one this means that the Question 1 options: change in quantity supplied is greater than the change in price. percentage change in quantity supplied is greater than the percentage change in price. change in quantity supplied is less than the change in price. percentage change in quantity supplied is less than the percentage change in price. percentage change in quantity supplied is less than the change in price. Save Question 2 (1 point) Refer to the table above. The average fixed cost of producing 5 bicycles is Question 2 options: $116. more than $116. greater than $30. less than or equal to $20. $30. Save Question 3 (1 point) The price elasticity of supply is always Question 3 options: zero or a positive number. one. greater than one. a positive number only because it is customary to take its absolute value. between zero and one. Save Question 4 (1 point) If a price taker produces an output level where price is less than marginal cost then the firm should Question 4 options: raise its price. pay less to its fixed factors of production. decrease output to earn a higher profit or a smaller loss. increase output to earn a higher profit or a smaller loss. leave its output decision unchanged. Save Question 5 (1 point) When the marginal return to the variable factor of production is diminishing the marginal cost curve is Question 5 options: upward-sloping. vertical. parallel to the vertical axis. downward-sloping. horizontal. Save Question 6 (1 point) Profit maximization is the primary objective of Question 6 options: private firms. the government. the military. labour unions. political parties. Save Question 7 (1 point) Refer to the graph above. If the market price is $16 at the profit maximizing output total variable cost is Question 7 options: $50. $40. $10. $9. $1. Save Question 8 (1 point) If the marginal cost of adding an extra unit of output exceeds average total cost Question 8 options: average variable cost must be decreasing as output increases. average fixed cost must be increasing as output increases. average total cost must be increasing as output increases. average total cost must be decreasing as output increases. average fixed cost must be constant. Save Question 9 (1 point) Refer to the graph above. If the firm is a price taker and is producing the level of output at the minimum average total cost of production this firm should Question 9 options: expand its output. reduce its output. not change its output. expand its output if the market price is higher than $9. contract its output if the market price is equal to $9. Save Question 10 (1 point) Refer to the graph above. Total fixed cost at 5 units of output is Question 10 options: approximately $0.50. approximately $1.00. approximately $2.00. approximately $10.00. impossible to determine. Save Question 11 (1 point) Whenever the marginal cost curve lies above the average total cost curve Question 11 options: average variable cost is decreasing. average total cost is decreasing. average fixed cost is increasing. average total cost is increasing. average fixed cost must be constant. Save Question 12 (1 point) The price equals marginal cost rule for profit maximization is a specific example of which of the following core principles? Question 12 options: Scarcity. Cost-benefit. Comparative advantage. Equilibrium. Efficiency. Save Question 13 (1 point) If factors of production are relatively immobile then the price elasticity of supply will tend to be Question 13 options: larger. perfectly elastic. smaller. elastic. unaffected. Save Question 14 (1 point) In general as the price of a good rises suppliers of the good will produce Question 14 options: more. less. the same amount. either the same amount or less. an indeterminate amount; it is impossible to know. Save Question 15 (1 point) The question Can I make more money if I sell one more unit? is the basis of all ________ decisions. Question 15 options: demand supply government public-sector utility Save Show less

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