Microeconomics, So far!

Question 1

If the demand in a certain market is considered relatively elastic, then what coefficient of elasticity would it have?

Accepted Answer

2

Question 2

What are the three zones of the demand curve, in order?

Accepted Answer

elastic, unit-elastic, inelastic

Question 3

What is the average total cost(ATC) of the fifth unit?

Accepted Answer

48

Question 4

Which of the following best explains the definition of explicit cost?

Accepted Answer

The amount of money it costs to produce

Question 5

What economic system gives government most control over the factors of production?

Accepted Answer

Command

Question 6

Which of the following formulas best describes how to calculate accounting profit?(AC)

Accepted Answer

AC = Total Revenue - Explicit Cost

Question 7

What is the formula for calculating Average Total Cost?

Accepted Answer

Total Cost / Quantity

Question 8

How do you calculate total revenue? (TR)

Accepted Answer

TR = Price times quantity

Question 9

If a firm is experiencing a loss in the short run then they must shut down.

Accepted Answer

False

Question 10

Which of the following formulas best calculates economic profit? (EP)

Accepted Answer

EP = Total Revenue - (explicit cost+ implicit costs), EP = Total Revenue - opportunity costs

Question 11

What is the concept of Marginal Product?

Accepted Answer

The amount of additional output from one more unit of input

Question 12

At what range is considered to be the firms supply curve

Accepted Answer

From min AVC and above

Question 13

At what price does the firm make a positive economic profit?

Accepted Answer

$18

Question 14

At what price, does this Perfectly competitive firm break even (or earn normal profit)

Accepted Answer

$14

Question 15

From the following graph, what will the market quantity be like in the long-run

Accepted Answer

A decrease in Market Quantity

Question 16

price of gas increases by $0.50 because of a tax, and the supply and demand curve is unit-elastic, the tax burden is on?

Accepted Answer

consumer and producer equally

Question 17

What does MC =MR help do in microeconomics?

Accepted Answer

How much to produce

Question 18

If consumer income increases, what happens to price of normal goods in the long run?

Accepted Answer

Remains the same

Question 19

At what price range, would this firm have to shut down?

Accepted Answer

Below $10

Question 20

Which of the following best explains the definition of implicit cost?

Accepted Answer

a cost of what could have been

Question 21

When is the only time when a firm is producing at constant returns to scale?

Accepted Answer

in-long run equilibrium or "break-even"

Question 22

If a market has a relatively inelastic demand, what is likely to be the coefficient of elasticity?

Accepted Answer

.3

Question 23

From the following graph, what will happen to the market quantity in the long run?

Accepted Answer

Market quantity will increase

Question 24

What closely relates to a fixed cost?

Accepted Answer

Rent for a building

Question 25

Which of the following best describes a firm in a perfectly competitive market

Accepted Answer

They are price-takers

Question 26

As per this graph, what is the Fixed cost of production?

Accepted Answer

$40

Question 27

What happens to all firms experiencing profit in the long run?

Accepted Answer

Firms in the long run enter the market and take the positive profits

Question 28

Firms can experience a positive accounting profit while having a negative economic profit (or loss)

Accepted Answer

True

Microeconomics, So far!

Questions 28

Microeconomics, So far!

Questions 28