economics

1.

1 point

under what conditions does maximum production lead to maximum profit?

all costs are stability

all costs are fixed, and price stability

all the above

2.

1 point

how does diminishing marginal utility differ from diminishing marginal product?

DMR refers to the supply side of the market

DMR refers to the demand side of the market

3.

1 point

what measure of utility generally falls as consumption rises?

marginal costs

marginal utility

total utility

4.

1 point

Given Q=16-2P, and assuming supply crosses demand at the midpoint. At equilibrium what would consumers be willing and able to pay?

5.

1 point

what is the ratio of marginal to average product called?

AP/MC

MP/AP

PA/PA

6.

1 point

when average product is maximized, what is true of MP?

MP=AP

PA/AP

AP+ATP

7.

1 point

In the long run, if a business gets more cost effective as it grows in capacity, what is it called?

economies of scale

economics

economies of pale

8.

1 point

what technique would producers likely attempt that would lead to a reduced consumers surplus?

9.

1 point

Given Q=16-2P, and assuming supply crosses demand at the midpoint. At equilibrium what is the consumer surplus?

10.

1 point

what is meant by the phrase "pricing is done at the margin"?

prices in competitive markets are set in proportion to the marginal utility of the first item consumed in the market

prices in competitive markets are set in proportion to the marginal utility of the last item consumed in the market

11.

1 point

which stage of production should generally be avoided?

stage 4

stage 3

stage 2

stage 1

12.

1 point

what is the condition for utility maximization?

MUn/Pn

pn/mn

mu2/p2

13.

1 point

which measure of costs rises with output?

total variable costs

total fixed costs

total costs

14.

1 point

what is the limit to ones buying power known as?

value added

budget constraint

income

15.

1 point

what is another name for this condition? (utility maximization)

consumer optimization

consumer surplus

16.

1 point

which measure of cost never changes?

total variable costs

total fixed costs

total costs

17.

1 point

Given Q=16-2P, and assuming supply crosses demand at the midpoint. At equilibrium what is total revenue?

18.

1 point

What measure of utility generally rises with consumption?

total utility

marginal utility

19.

1 point

what economic conditions are necessary for the strategy to be employed?

c) both A &B

b) price discrimination

a) distinguish subgroups

20.

1 point

when total product is maximized, what is true of marginal product?

MP = MP/P

MP = 0 Marginal profit = 0

MP = 1

21.

1 point

what is the area above the supply curve but below the equilibrium price called?

producers equity

producers supply

producers surplus

producers this

22.

1 point

at which points does the marginal cost intersect the average variable and average total costs?

minimum values

minimum effect

minimum profit

23.

1 point

which total cost measures are affected by marginal costs?

total variable costs

total costs

both total costs & total variable costs