CORRECT WELL DETAILED

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CORRECT WELL DETAILED

ANSWERS|LATEST

UPDATE!!!!2025/2026|GUARANTEED

What is the change in total cost equal to in the marginal cost equation? - ANSWER Marginal cost multiplied by change in quantity.

Fixed costs equal: - ANSWER Total costs minus variable costs

Economic profit is distinct from accounting profit because - ANSWER Economic profit incorporates both explicit and implicit costs.

Total costs include: - ANSWER Variable costs plus fixed costs

Marginal costs consider - ANSWER The increase in total cost arising from an extra unit of production.

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.

Which statement is true about productivity? - ANSWER The value of marginal product of labor equals wage in a competitive firm.

A production function expresses the relationship between: - ANSWER Quantity of resource inputs and product/service outputs.

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Opportunity costs include: - ANSWER The income the entrepreneur could have earned working for an employer.

Economists and decision makers study and then make decisions or judgments based on

(select best ANSWER): - ANSWER Marginal analysis.

The primary reason that the marginal cost curve declines and then increases is: - ANSWER Firms experience increasing marginal product, then diminishing marginal product.

When do marginal costs eventually rise? - ANSWER With the quantity of output.

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.

A competitive firm is characterized by: - ANSWER Trading of identical products.

Competitive firms experience marginal revenue that is: - ANSWER Equal to price.

In the short-run, a competitive firm would continue to produce under the following

circumstance: - ANSWER Total revenue exceeds total variable costs.

What fundamental shape does a demand curve take in a competitive market? - ANSWER Horizontal.

For a perfectly competitive firm which condition is true? - ANSWER The demand curve is the same as the marginal revenue curve.

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