To compute profit or loss

subtract total cost from total revenue

How does a perfectly competitive market differ from the monopolistic competitive market?

differentiated products in a monopolistic competitive market

crowded kitchen space reducing the productivity of new employees is an example of

law of diminishing marginal return

Companies should produce when

marginal revenue equals marginal cost

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Unit 3 Economics Class Review

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Business Types and Market Structures

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Questions 20

Answers

1
To compute profit or loss
subtract variable cost from total cost
multiply price and quantity
subtract total cost from total revenue
subtract marginal cost from marginal revenue
2
example of a variable cost
rent
raw materials
property tax
business tax
3
How does a perfectly competitive market differ from the monopolistic competitive market?
Perfect competitive market has high barriers to entry
differentiated products in a monopolistic competitive market
Fewer sellers in a monopolistic competitive market
cartels are only possible in the perfect competitive market
4
single producer has complete control of the market
monopolistic competition
perfect competition
monopoly
oligopoly
5
crowded kitchen space reducing the productivity of new employees is an example of
total revenue
loss
law of diminishing marginal return
law of equilibrium wages
6
business legally distinct from its owners
sole proprietorship
partnership
corporation
7
owners of a corporation
stockholders
board of directors
employees
the CEO
8
a person's wage rate in terms of what it buys
real wage
equilibrium wage
money wage
minimum wage
9
example of a fixed cost
labor
rent
electricity
ingredients used for production
10
corporations can borrow money by
issuing bonds
borrowing from the government
selling stock
11
makes most of the decisions in a corporation
investors
board of directors
founders of the company
stockholders
12
In which market structure are sellers "price takers"?
monopolistic competition
monopoly
perfect competition
oliogopoly
13
Which is an example of price discrimination?
decreasing prices to sell surplus items
lower prices for seniors
holiday sale prices at stores
businesses that open only during certain seasons
14
double taxation is a disadvantage for
sole proprietorships
partnerships
corporations
15
price of labor
equilibrium rate
cost rate
price rate
wage rate
16
three to five companies dominate a market
perfect competition
oligopoly
monopolistic competition
monopoly
17
marginal revenue is the same as
market price
total revenue
marginal cost
total cost
18
What is calculated when fixed cost is added to variable cost?
total revenue
total cost
marginal cost
marginal revenue
19
Companies should produce when
marginal revenue equals marginal cost
total revenue is greater than marginal revenue
total revenue is greater than total cost
Marginal cost is greater than total cost
20
business organization combining two or more people's specializations
sole proprietorship
corporation
partnership

Unit 3 Economics Class Review Flashcards | StudBud