OnRamps Unit ?

What is the definition of a firm?

• A company that produces goods or services

• The total revenue earned by a company

• The costs incurred by a company

• The profit made by a company

What are explicit costs and implicit costs?

• Explicit costs are monetary payments, while implicit costs are non-monetary opportunity costs

• Explicit costs are non-monetary opportunity costs, while implicit costs are monetary payments

• Both explicit costs and implicit costs are monetary payments

• Both explicit costs and implicit costs are non-monetary opportunity costs

What is the difference between accounting profit and economic profit?

• Accounting profit includes only explicit costs, while economic profit includes both explicit and implicit costs

• Accounting profit includes both explicit and implicit costs, while economic profit includes only explicit costs

• Accounting profit includes only monetary payments, while economic profit includes both monetary and non-monetary opportunity costs

• Accounting profit includes both monetary and non-monetary opportunity costs, while economic profit includes only monetary payments

What are the factors of production?

• Land/raw materials, labor, capital, technology, entrepreneurship

• Land/raw materials, labor, capital, technology, management

• Land/raw materials, labor, capital, technology, marketing

• Land/raw materials, labor, capital, technology, finance

What are fixed inputs?

• Inputs that do not change with the level of production

• Inputs that change with the level of production

• Inputs that are used in the short run

• Inputs that are used in the long run

What is the Law of Diminishing Marginal Product?

• As more of a variable input is added to a fixed input, the marginal product of the variable input will eventually decrease

• As more of a fixed input is added to a variable input, the marginal product of the fixed input will eventually decrease

• As more of a variable input is added to a fixed input, the average product of the variable input will eventually decrease

• As more of a fixed input is added to a variable input, the average product of the fixed input will eventually decrease

What are average and marginal costs?

• Average costs are the total costs divided by the quantity produced, while marginal costs are the additional costs of producing one more unit

• Average costs are the additional costs of producing one more unit, while marginal costs are the total costs divided by the quantity produced

• Average costs are the total costs divided by the quantity produced, while marginal costs are the total costs

• Average costs are the total costs, while marginal costs are the additional costs of producing one more unit

What is the difference between short run production and long run production?

• Short run production has at least one fixed input, while long run production has no fixed inputs

• Short run production has no fixed inputs, while long run production has at least one fixed input

• Short run production is more efficient than long run production

• Short run production is less efficient than long run production

What is perfect competition?

• A market structure with many buyers and sellers, homogeneous products, and no barriers to entry or exit

• A market structure with few buyers and sellers, differentiated products, and high barriers to entry or exit

• A market structure with many buyers and sellers, differentiated products, and no barriers to entry or exit

• A market structure with few buyers and sellers, homogeneous products, and high barriers to entry or exit

What is the shutdown point?

• The price at which a firm should stop producing in the short run

• The price at which a firm should continue producing in the short run

• The price at which a firm should exit the market in the long run

• The price at which a firm should enter the market in the long run