Liberty University ECON 213 Quiz 9 Complete Solutions Correct Answers Key

Preview (4 of 10 Pages)

100%

Liberty University ECON 213 Quiz 9 Complete Solutions Correct Answers Key - Page 1 preview image

Loading page ...

Liberty University ECON 213 quiz 9complete solutions correct answers keyTwo versionsQuestion 1 In the long run, if a firm is making a loss, it will:Question 2 Refer to the accompanying figure. This firm’s shortrun supply curve is represented bythe:Question 3 In competitive markets:Question4JimandLisaownadoggroomingbusinessinChamplain,NewYork,calledJLGroomers.Therearemanybuyersandmanysellersinthedoggroomingservicemarket.JLGroomers experiences normal cost curves, with the marginal cost (MC) curve crossing averagevariable cost (AVC) at $14 and average total cost (ATC) at $22. JL Groomers will always shut downif the market price is:Question 5 Dave’s Batting Cages is located in Boston, Massachusetts. During the first year ofoperation, Dave’s Batting Cages incurred many costs. In that year, Dave spent $5,000 on labor,$2,000 on maintenance, and $1,000 on electricity. Dave took out a loan to open his business, inwhich he would have earned $1,500, and his previous job, which he could get back at any time,paid him $50,000. Dave’s Batting Cages incurred _________ in explicit costs.Question 6 Refer to the accompanying figure to answer the questions that follow. If the price is $3,the firm is making:Question 7 A firm’s willingness to supply its product in the long run is represented on a graph bythe:Question 8 The accompanying table represents the quantity produced, the total revenue, and thetotal cost of a firm operating in a perfectly competitive market. Refer to this table to answer thequestions that follow. Profits are maximized when producing:Question 9 Firms will be indifferent about shutting down or producing if the price they charge is:Question 10 The accompanying table represents the quantity produced, the total revenue, and thetotal cost of a firm operating in a perfectly competitive market. Refer to this table to answer thequestions that follow. When profits are maximized, profits are equal to:Question 11 If firms in a competitive market are making positive economic profits, you would

Liberty University ECON 213 Quiz 9 Complete Solutions Correct Answers Key - Page 2 preview image

Loading page ...

Liberty University ECON 213 Quiz 9 Complete Solutions Correct Answers Key - Page 3 preview image

Loading page ...

expect firms to:Question 12 A firm will shut down in the longrun if the:Question 13 Which of the following lists the three main characteristics of a competitive market?Question 14 Refer to the accompanying figure. A firm would be suffering a loss but still beproducing if the price is:Question 15 Charlie’s Churros is a perfectly competitive firm that sells desserts in Houston, Texas.Charlie’s Churros currently is taking in $40,000 in revenues, and has $15,000 in explicit costs and$25,000 in implicit costs. Charlie’s Churros’ accounting profits are:Question 16 Tom’s Campgrounds is a firm conducting business in a competitive market. Tomrealizes he is making a loss and is trying to decide whether to shut down or stay open. He shouldstay open:Question 17 If Dirk’s Doughnuts is a perfectly competitive firm and is currently incurring economiclosses of $500:Question 18 One reason why the longrun supply curve may slope upward in a competitive marketis that:Question 19 If Nicole’s KnickKnacks is a perfectly competitive firm and is making zero economicprofits:Question 20 Refer to the accompanying set of graphs to answer the questions that follow. Whichgraph would result in firms exiting a perfectly competitive market in the long run?Version BQuestion 1 In a competitive market, if one firm raises its price relative to the other firms in themarket, consumers are willing to go to another firm because:Question 2 Refer to the accompanying table. A firm participating in a competitive market withthese costs would be indifferent about producing or shutting down if the price is:Question 3 Refer to the accompanying figure. Point _________ corresponds to the profitmaximizingquantity that a competitive firm would produce.

Liberty University ECON 213 Quiz 9 Complete Solutions Correct Answers Key - Page 4 preview image

Loading page ...

Question4Refertotheaccompanyingfigure. Afirmwouldbesufferingalossbutstillbeproducing if the price is:Question 5 Refer to the accompanying table. A firm participating in a competitive market withthese costs would be making a profit if the price is:Question 6The city of Tustin, California, has spent $10 million ona project to build a newcommunity college. It will cost the city $40 million to finish the project. When making the decisionto continue the project, the city’s chief economist tells the city council to ignore the $10 millionbecause:Question 7 A firm’s willingness to supply its product in the short run is represented on a graph bythe:Question 8 A firm’s shortrun supply curve is equal to the firm’s:Question 9 Refer to the accompanying figure to answer the questions that follow. If the price is $3,the firm is making:Question10Whentalkingabouteconomicprofitsinaperfectlycompetitivemarket,thedifference between the long run and the short run is that, in the short run, firms:Question 11 Dave’s Batting Cages is located in Boston, Massachusetts. During the first year ofoperation, Dave’s Batting Cages incurred many costs. In that year, Dave spent $5,000 on labor,$2,000 on maintenance, and $1,000 on electricity. Dave took out a loan to open his business, inwhich he would have earned $1,500, and his previous job, which he could get back at any time,paid him $50,000. Dave’s Batting Cages incurred _________ in explicit costs.Question 12 Refer to the accompanying figure. A firm would be making positive profits if theprice is:Question 13 All firms, no matter what type of firm structure they are producing in, make theirproduction decisions based on the point where their:Question 14 A firm characterized as a pricetaker:Question 15 A good economist will ignore _________ and focus on _________ when it comes tomaking the right decisions.Question 16 The accompanying table represents the quantity produced, the total revenue, and the

Preview Mode

This document has 10 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Liberty University Econ 213 Problem Set 2 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 3 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 8 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 6 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 11 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 2 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 10 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 7 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 1 Complete Solutions Correct Answers Key

Liberty University ECON 213 Quiz 4 Complete Solutions Correct Answers Key

Company

Explore

Study Tools