[{"id":213301,"question":"The short run supply curve for a competitive industry is derived by.","choices":[{"text":"Horizontally summing the marginal cost curves for each firm in the industry","value":"A"},{"text":"Horizontally summing the average variable cost curves for each firming the industry","value":"B"},{"text":"Vertically summing the marginal cost curves for each firm in the industry","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213300,"question":"Along the long run supply curve all of the following can vary except.","choices":[{"text":"The level of profits","value":"A"},{"text":"The number of firms in the industry","value":"B"},{"text":"Input prices","value":"C"},{"text":"The level of input usage","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213299,"question":"Skills that can be transferred to other employers are called.","choices":[{"text":"General skills","value":"A"},{"text":"Specific skills","value":"B"},{"text":"Non pecuniary skills","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213298,"question":"In the short run a competitive firm's supply curve is.","choices":[{"text":"Its average variable cost cure to the right of the marginal cost curve.","value":"A"},{"text":"Its marginal cost curve above the average variable cost curve.","value":"B"},{"text":"It marginal cost curves above its average cost curve.","value":"C"},{"text":"The horizontal summation of the marginal cost curves","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213297,"question":"In the short run if price falls the firm will respond by","choices":[{"text":"Shutting down","value":"A"},{"text":"Equating average variable cost to marginal revenue","value":"B"},{"text":"Reducing output along its marginal cost curve as long as marginal revenue exceed average variable cost","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213296,"question":"For a competitive firm the demand curve","choices":[{"text":"A horizontal","value":"A"},{"text":"Coincides with the marginal revenue curve","value":"B"},{"text":"Coincides with the average revenue curve","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213295,"question":"The competitive firm maximizes its profit by operating where","choices":[{"text":"Average costs are at a minimum","value":"A"},{"text":"Total revenue is at a maximum","value":"B"},{"text":"Profit per unit is at a maximum","value":"C"},{"text":"Marginal cost equals price","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213294,"question":"The statement that marginal cost = marginal revenue leads to profit maximization of loss minimization is true.","choices":[{"text":"All the time","value":"A"},{"text":"Only in the long run","value":"B"},{"text":"Only if \"marginal cost is rising at the point of equality.","value":"C"},{"text":"Only if average total cost is falling at the point of equality","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213293,"question":"In the short run no firm operates with a loss unless","choices":[{"text":"Variable cost equals fixed cost","value":"A"},{"text":"Variable cost falls short of fixed cost","value":"B"},{"text":"Total revenue covers variable costs","value":"C"},{"text":"Total revenue covers fixed cost","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213292,"question":"The demand for labor will be more elastic if","choices":[{"text":"There are few substitutes for labor","value":"A"},{"text":"There is a shor time under consideration","value":"B"},{"text":"Labor is a large percent of the total cost of production","value":"C"},{"text":"The demand for the product is relatively inelastic","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213291,"question":"The demand for labor slopes down and to the right because of.","choices":[{"text":"The law of demand","value":"A"},{"text":"The iron law of wages","value":"B"},{"text":"The law of diminishing marginal returns","value":"C"},{"text":"Economies of scale","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213290,"question":"Which of the following statements abut the relationship between marginal cost and average cost is correct.","choices":[{"text":"When MC is falling AC is falling","value":"A"},{"text":"AC equals MC and MC'S lowest point","value":"B"},{"text":"When MC exceeds Ac, Ac must be rising","value":"C"},{"text":"When Ac exceed MC, MC must be rising","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213289,"question":"the ouput where diminishing return to production begin is also the ouput where","choices":[{"text":"Marginal cost is at a minimum.","value":"A"},{"text":"Average total cost is at a minimum","value":"B"},{"text":"Average variable cost is at a minimum","value":"C"},{"text":"Marginal and average","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213288,"question":"If average fixed cost is 40 and average variable cost is 80 for a given output we the know that average total cost is.","choices":[{"text":"40","value":"A"},{"text":"<sup>120</sup>","value":"B"},{"text":"80","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213287,"question":"Average fixed cost","choices":[{"text":"Is U shaped","value":"A"},{"text":"Declines over the entire output range.","value":"B"},{"text":"Is a long run concept only","value":"C"},{"text":"Is influenced by diminishing returns to production","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213286,"question":"A firm's long run average total cost lineis","choices":[{"text":"Identical to its long run marginal cost line","value":"A"},{"text":"Also its long run supply curve","value":"B"},{"text":"In fact the average total cost curve of the optimal plant","value":"C"},{"text":"Tangent to all the curve of short run average total cost","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213285,"question":"If a firm triples all inputs and output triples as well the firm is subject to","choices":[{"text":"Constant returns to scale","value":"A"},{"text":"Increasing returns to scale","value":"B"},{"text":"Economies of scale","value":"C"},{"text":"Both b and c","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213284,"question":"If a simultaneous and equal percentage decrease in the use of all physical inputs leads to a larger percentage decrease in physical output a firm's production function is said to exhibit.","choices":[{"text":"Decreasing returns to scale","value":"A"},{"text":"<div>Constant returns to scale</div>","value":"B"},{"text":"Increasing returns to scale","value":"C"},{"text":"Diseconomies of scale","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213283,"question":"A negatively sloped isoquant implies","choices":[{"text":"Products with negative marginal utilities","value":"A"},{"text":"Products with positive marginal utilities","value":"B"},{"text":"Inputs with negative marginal products","value":"C"},{"text":"Inputs with positive marginal products","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213282,"question":"The demand for labor is the same as the","choices":[{"text":"Marginal revenue product","value":"A"},{"text":"Marginal physical product","value":"B"},{"text":"Marginal cost","value":"C"},{"text":"Wage","value":"D"},{"value":"E"}],"correctAnswer":2}]