In economics, a firm that faces no competitors is referred to as _________________.
A. an oligopoly
B. a monopoly
C. a perfect competitor
D. an oligopolizor
B. a monopoly
________________________ arises where many firms are competing in a market to sell
similar but differentiated product...
Best Grades | Must Pass | Latest Update | Correct Answers | 2024/ 2025
ECON 201 Exam 2 Questions and Correct
Answers | Latest Update
In economics, a firm that faces no competitors is referred to as _________________.
A. an oligopoly
B. a monopoly
C. a perfect competitor
D. an oligopolizor
B. a monopoly
________________________ arises where many firms are competing in a market to sell
similar but differentiated products.
A. Oligopolistic competition
B. Perfect competition
C. Monopolistic competition
D. Monogopolised competition
C. Monopolistic competition
A firm's ___________ consist of expenditures that must be made before production starts that
typically, over the short run, _______________ regardless of the level of production.
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A. fixed costs; do not change,
B. variable costs; are constantly changing,
C. fixed costs; are consistently changing,
D. variable costs; do not change,
A. fixed costs; do not change,
______________ include all of the costs of production that increase with the quantity
produced.
A. Fixed costs
B. Variable costs
C. Average costs
D. Average variable costs
B. Variable costs
____________________________ occur when the marginal gain in output diminishes as each
additional unit of input is added.
A. Diminishing variable returns
B. Diminishing average returns
C. Diminishing marginal returns
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D. Diminishing marginal costs
C. Diminishing marginal returns
In order to determine ____________, the firm's total costs must be divided by the quantity of
its output.
A. diminishing marginal returns
B. fixed costs
C. variable cost
D. average cost
D. average cost
In order to determine the average variable cost, the firm's variable costs are divided by
_______________________.
A. its' fixed costs
B. the quantity of output
C. its' average costs
D. diminishing marginal costs
B. the quantity of output
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The term _____________ is used to describe the additional cost of producing one more unit.
A. average cost
B. fixed cost
C. variable cost
D. marginal cost
D. marginal cost
The term __________________ describes a situation where the quantity of output rises, but
the average cost of production falls.
A. diminishing marginal returns
B. marginal cost output
C. economies of scale
D. diseconomies of scale
C. economies of scale
The term "constant returns to scale" describes a situation where
A. expanding all inputs does not change the average cost of production.
B. a larger-scale firm can produce at a lower cost than a smaller-scale firm.
C. expanding all inputs changes the average cost of production.
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