Econ 528 - Study guides, Class notes & Summaries

The production possibilities frontier is the A) maximum output that can be produced at an opportunity cost of zero. B) minimum output that can be produced when resources are used inefficiently. C) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced, given the available factors of production and the state of technology. D) boundary between the combinations of goods and services that can be produced and the combinations...

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays a.) diminishing returns b.) economies of scale c.) diseconomies of scale d.) declining fixed costs correct answers b. ) economies of scale The long-run average cost curve shows A) the lowest average cost of producing every level of output in the long run. B) where the most profitable level of output occurs. C) the average cost of producing where diminishing returns are not prese...

ECON 528 Final Exam Questions And Answers 2024

Value= correct answers =sum(t=1...n)((TRt)-TCt) / (1+i)t where t = time period / # of years i = discount rate = current interest rate firm value is maximized when: correct answers total revenue is maximized total cost for a given output is minimized total cost = correct answers average cost x quantity produced AC x Q Minimizing average cost also minimizes correct answers total cost for a given output Minimizing average cost also maximizes correct answers firm value Mi...

ECON 528 Midterm Exam With Complete Solutions 2024

According to the profit-maximization goal, the firm should attempt to maximize short-run profits since there is too much uncertainty associated with long-run profits. correct answers . False If Melissa owns a software company that incurs no fixed costs, then correct answers her total cost equals her total variable cost In the short run, a firm cannot change the amount of capital it uses. Therefore the cost of capital is a correct answers fixed cost. Because the amount of labor a firm em...

Relative to a perfectly competitive market, a monopoly results in: a. a gain in producer surplus equal to the loss in consumer surplus. b. a gain in producer surplus less than the loss in consumer surplus. c. greater economic efficiency. d. a gain in producer surplus equal to the gain in consumer surplus. correct answers b. a gain in producer surplus less than the loss in consumer surplus. An oligopolistic industry is characterized by all of the following except a. existence of...

The best definition of economics is: A) how goods and services are produced. B) how choices are made under conditions of scarcity. C) how businesses maximize profits. D) how money is used. correct answers B) how choices are made under conditions of scarcity Managerial economics is best defined as the economic study of: A) how businesses can decide on the best use of scarce resources. B) how businesses can make the most profits. C) how businesses can sell the most products. D) how busi...

ECON 528 Final Exam Questions And Answers 2024

ECON 528 Midterm Exam With 100% Correct Answers 2024