Econ 3 Test

Front

The Business entity that has limited liability as an advantage and its growing into a bureaucracy as a disadvantage is a:

Back

Corporation

Front

The business entity that has easy to organize as an advantage and conflict of authority as a disadvantage is a :

Back

Partnership

Front

When a firm is experiencing diminishing returns:

Back

total product is increasing at a decreasing rate.

Front

When a firm is experiencing increasing returns:

Back

the firm can only be in Stage 1 of the production process.

Front

When a firm is experiencing diminishing returns

Back

marginal product is decreasing

Front

When the total product curve is increasing at a decreasing rate

Back

marginal product can be either greater then equal to or less than average product

Front

When an average product is rising

Back

the firm is in stage 1

Front

In a firm where there is only one variable input, as the average product falls, average variable cost rises.

Back

as the average product falls, average variable cost rises

Front

As a firm produces greater amounts of output, what can be inferred? Options: average fixed cost is constant, total variable cost and total cost have the same marginal cost, the fixed cost and variable cost curves run parallel to each other, marginal cost always declines.

Back

total variable cost and total cost have the same marginal cost

Front

As long as average total cost is decreasing

Back

Average variable cost is less than average total cost