Total profit equals: A. TR-RTF. B. TR-(AVC x Q). C. AR - (AC/Q). D. AR- (TVC/Q). E. TR-(AC xQ). Question 38

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
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Chapter21: Production And Costs
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Question 37
Total profit equals:
A. TR - RTE.
B. TR- (AVC x Q).
C. AR - (AC/Q).
D. AR - (TVC/Q).
E. TR- (AC xQ).
Question 38
Normal profit implies that:
A. economic profit is zero.
B. all factors employed are earning an amount equal to their opportunity costs.
C. firms are earning enough to cover all the costs of production
D. price must be greater than average variable cost.
E. all of the above are correct.
Question 39
Which of the following is NOT a characteristic of perfect competition in the short run?
A. All firms are price takers.
B. All firms produce where average costs are minimised.
C. The equilibrium level of output occurs where marginal cost equalls marginal revenue.
D. All buyers and sellers have perfect knowledge of market conditions.
E. All sellers act independently of each other.
Question 40
The market supply curve for a perfectly competitive industry is:
A. the horizontal sum of the constituent firms' MC curves above minimum MC.
B. the horizontal sum of the constituent firms' MC curves above minimum AVC.
C. the horizontal sum of the constituent firms' MC curves above minimum AC.
D. the horizontal sum of the constituent firms' AVC curves above minimum AVC.
E. the horizontal sum of the constituent firms' AC curves above minimum MC.
Transcribed Image Text:Question 37 Total profit equals: A. TR - RTE. B. TR- (AVC x Q). C. AR - (AC/Q). D. AR - (TVC/Q). E. TR- (AC xQ). Question 38 Normal profit implies that: A. economic profit is zero. B. all factors employed are earning an amount equal to their opportunity costs. C. firms are earning enough to cover all the costs of production D. price must be greater than average variable cost. E. all of the above are correct. Question 39 Which of the following is NOT a characteristic of perfect competition in the short run? A. All firms are price takers. B. All firms produce where average costs are minimised. C. The equilibrium level of output occurs where marginal cost equalls marginal revenue. D. All buyers and sellers have perfect knowledge of market conditions. E. All sellers act independently of each other. Question 40 The market supply curve for a perfectly competitive industry is: A. the horizontal sum of the constituent firms' MC curves above minimum MC. B. the horizontal sum of the constituent firms' MC curves above minimum AVC. C. the horizontal sum of the constituent firms' MC curves above minimum AC. D. the horizontal sum of the constituent firms' AVC curves above minimum AVC. E. the horizontal sum of the constituent firms' AC curves above minimum MC.
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