WGU C211 Global Economics for Managers Test Bank |300+ Questions and Verified Answers| 100% Correct (Latest 2023/ 2024)
WGU C211 Global Economics for Managers
Test Bank |300+ Questions and Verified
Answers| 100% Correct (Latest 2023/ 2024)
Q: Economic profit is distinct from accounting profit because:
Answer:
Economic profit incorporates both explicit and implicit costs.
Q: Total costs include:
Answer:
Variable costs plus fixed costs.
Q: Marginal costs consider:
Answer:
The increase in total cost arising from an extra unit of production.
Q: What response best describes the relationship between marginal costs and total costs?
Answer:
Whenever marginal cost is less than average total cost, average total cost is falling.
Q: Which statement is true about productivity?
Answer:
The value of marginal product of labor equals wage in a competitive firm.
Q: A production function expresses the relationship between:
Answer:
Quantity of resource inputs and product/service outputs.
Q: Opportunity costs include:
Answer:
The income the entrepreneur could have earned working for an employer.
Q: Economists and decision makers study and then make decisions or judgments based on
(select best answer):
Answer:
Marginal analysis.
Q: The primary reason that the marginal cost curve declines and then increases is:
Answer:
Firms experience increasing marginal product, then diminishing marginal product.
Q: Which of the following statements is accurate?
Answer:
Marginal costs eventually rise with the quantity of output.
Q: Consider the following example: A perfectly competitive firm finds that at current
production levels marginal cost is greater than marginal revenue. What action should this firm
take in order to pursue the maximization of profit?
Answer:
Decrease the target output.
Q: A competitive firm is characterized by:
Answer:
Trading of identical products.
Q: Competitive firms experience marginal revenue that is:
Answer:
Equal to price.
Q: In the short-run, a competitive firm would continue to produce under the following
circumstance:
Answer:
Total revenue exceeds total variable costs.
Q: What fundamental shape does a demand curve take in a competitive market?
Answer:
Horizontal.
Q: For a perfectly competitive firm which condition is true?
Answer:
The demand curve is the same as the marginal revenue curve.
Q: Which condition is true for perfectly competitive firms in the long-run?
Answer:
They will exit the market if total revenue is less than total costs.
Q: Which statement is true concerning marginal costs?
Answer:
Marginal costs typically decline and then increase with the quantity of output.
Q: What rule is used by perfectly competitive firms to determine shut-down in the shortrun?
Answer:
Price is less than average variable costs.
Q: What is true of perfectly competitive firms in the long-run?
Answer:
Economic profits will not be achievable.
Q: What two market structures have common profit characteristics in the long run?
Powered by https://learnexams.com/search/study?query=