Question 1 (1 point) If the price elasticity of supply is less than one, this me

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Question 1 (1 point)

If the price elasticity of supply is less than one, this means that the

Question 1 options:

change in quantity supplied is greater than the change in price.

percentage change in quantity supplied is greater than the percentage change in price.

change in quantity supplied is less than the change in price.

percentage change in quantity supplied is less than the percentage change in price.

percentage change in quantity supplied is less than the change in price.

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Question 2 (1 point)

  

Refer to the table above. The average fixed cost of producing 5 bicycles is

Question 2 options:

$116.

more than $116.

greater than $30.

less than or equal to $20.

$30.

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Question 3 (1 point)

The price elasticity of supply is always

Question 3 options:

zero or a positive number.

one.

greater than one.

a positive number only because it is customary to take its absolute value.

between zero and one.

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Question 4 (1 point)

If a price taker produces an output level where price is less than marginal cost, then the firm should

Question 4 options:

raise its price.

pay less to its fixed factors of production.

decrease output to earn a higher profit or a smaller loss.

increase output to earn a higher profit or a smaller loss.

leave its output decision unchanged.

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Question 5 (1 point)

When the marginal return to the variable factor of production is diminishing, the marginal cost curve is

Question 5 options:

upward-sloping.

vertical.

parallel to the vertical axis.

downward-sloping.

horizontal.

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Question 6 (1 point)

Profit maximization is the primary objective of

Question 6 options:

private firms.

the government.

the military.

labour unions.

political parties.

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Question 7 (1 point)

  

Refer to the graph above. If the market price is $16, at the profit maximizing output, total variable cost is

Question 7 options:

$50.

$40.

$10.

$9.

$1.

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Question 8 (1 point)

If the marginal cost of adding an extra unit of output exceeds average total cost,

Question 8 options:

average variable cost must be decreasing as output increases.

average fixed cost must be increasing as output increases.

average total cost must be increasing as output increases.

average total cost must be decreasing as output increases.

average fixed cost must be constant.

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Question 9 (1 point)

  

Refer to the graph above. If the firm is a price taker and is producing the level of output at the minimum average total cost of production, this firm should

Question 9 options:

expand its output.

reduce its output.

not change its output.

expand its output if the market price is higher than $9.

contract its output if the market price is equal to $9.

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Question 10 (1 point)

  

Refer to the graph above. Total fixed cost at 5 units of output is

Question 10 options:

approximately $0.50.

approximately $1.00.

approximately $2.00.

approximately $10.00.

impossible to determine.

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Question 11 (1 point)

Whenever the marginal cost curve lies above the average total cost curve,

Question 11 options:

average variable cost is decreasing.

average total cost is decreasing.

average fixed cost is increasing.

average total cost is increasing.

average fixed cost must be constant.

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Question 12 (1 point)

The price equals marginal cost rule for profit maximization is a specific example of which of the following core principles?

Question 12 options:

Scarcity.

Cost-benefit.

Comparative advantage.

Equilibrium.

Efficiency.

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Question 13 (1 point)

If factors of production are relatively immobile, then the price elasticity of supply will tend to be

Question 13 options:

larger.

perfectly elastic.

smaller.

elastic.

unaffected.

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Question 14 (1 point)

In general, as the price of a good rises, suppliers of the good will produce

Question 14 options:

more.

less.

the same amount.

either the same amount or less.

an indeterminate amount; it is impossible to know.

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Question 15 (1 point)

The question "Can I make more money if I sell one more unit?" is the basis of all ________ decisions.

Question 15 options:

demand

supply

government

public-sector

utility

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If the price elasticity of supply is less than one, this means that the Question 1 options: change in quantity supplied is greater than the change in price. percentage change in quantity supplied is greater than the percentage change in price. change in quantity supplied is less than the change in price.

Explanation / Answer

1-percentage change in quantity supplied is less than the percentage change in price.

3-between zero and one

2- less than or equal to $20.

4- decrease output to earn a higher profit or a smaller loss.

5- upward-sloping.

6- PRIVATE FIRMS

8- average total cost must be increasing as output increases.

9- not change its output.

10-approximately $0.50

11- average total cost is increasing.

12-Equilibrium

13-SMALLER

14- MORE

15-supply

                   

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