T-Shirt Enterprises is selling in a purely competitive market. Its output is 300 units, which sell for $1 each. At this level of output, marginal cost is $1 and average variable cost is $1.50. The firm should:

Produce zero units of output More test answers on https://studyhippo.com/micro-test-answers/

To achieve economic efficiency that reduces the number of resources used but increases the number of socially optimal outputs requires a triple equality. The three components that must be equal are which of the following? Price Marginal cost Average variable cost Average fixed cost Minimum average total cost Minimum marginal revenue

Price Marginal cost Minimum average total cost More test answers on https://studyhippo.com/econ-150-chp-13-extra-credit/

Which of the following is true? A) If price falls below average variable cost the firm will shut down in the short run. B) Total revenue and marginal revenue are the same in perfect competition. C) Economic profit per unit is found by subtracting MC from price. D) Economic profit is always positive in the long run.

A If price falls below average variable cost the firm will shut down in the short run More test answers on https://studyhippo.com/microeconomics-final-test-answers/

Suppose a profit-maximizing firm in a competitive market produces rubber bands. When the market price for rubber bands falls below the minimum of its average total cost, but still lies above the minimum of average variable cost, in the short run the firm will experience _________________ but will continue to _____________________

loses; produce rubber bands More test answers on https://studyhippo.com/econ-practice-test-3/

The efficient scale of the firm is the quantity of output that a. maximizes marginal product. b. maximizes profit. c. minimizes average total cost. d. minimizes average variable cost.

C. Minimizes average total cost. More test answers on https://studyhippo.com/econ-test-answers/

as the level of output increases, the difference between the value of average total cost and average variable cost

decrease because average fixed cost decreases as output increases More test answers on https://studyhippo.com/chapter-11-econ-hw/

Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:What was Carter Co.’s weighted average variable cost?

64 More test answers on https://studyhippo.com/accounting-2-final-2/

Ch.2 Quiz #1 Describe the graph the depicts the description: 1. Total variable costs 2. Average variable costs 3. Total fixed costs 4. Average fixed costs

1. 45 degree diagonal line starting from 0 2. Horizontal line 3. Horizontal line 4. Gradual downward sloping line never touching axis lines. More test answers on https://studyhippo.com/acct-302-midterm-1-56294/

Provided price exceeds minimum average variable cost, a competitive firm maximizes profit or minimizes loss in the short-run by producing the BLANK at which price or marginal revenue equals marginal cost.

Output More test answers on https://studyhippo.com/combined-micro-chapter-8/

In order to determine the average variable cost, the firm’s variable costs are divided by _______________________.

the quantity of output More test answers on https://studyhippo.com/microeconomics-7-2/

Average Variable Cost test questions and answers | Get Access To Average Variable Cost Flashcards and exam tests

Average Variable Cost Decision Making Industrial Organization Managerial Economics Principles Of Economics: Macroeconomics Principles Of Economics: Microeconomics

"Chapter 13: Monopolistic Competition and Oligopoly" Mega set – Flashcards 67 terms

Brooke Sharp

67 terms

Preview

Average Variable Cost Long Run Average Cost Principles Of Economics: Macroeconomics Principles Of Economics: Microeconomics

Chapter 11 Econ HW – Flashcards 56 terms

Niamh Mitchell

56 terms

Preview

Average Total Cost Average Variable Cost Long Run Average Cost Principles Of Economics: Microeconomics

micro ch 11 Test Questions – Flashcards 25 terms

Darren Farr

25 terms

Preview

Agricultural Economics Average Variable Cost Behavioral Economics Managerial Economics Principles Of Economics: Macroeconomics Principles Of Economics: Microeconomics

ECON 2306 Test 2 Study Guide – Flashcards 65 terms

Donna Chou

65 terms

Preview

AP Economics Average Total Cost Average Variable Cost Managerial Economics Principles Of Economics: Microeconomics

Chapters 5-9 Macroeconomics – Flashcards 164 terms

Trina Garrison

164 terms

Preview

AP Economics Average Variable Cost Behavioral Economics Diminishing Marginal Utility Peanut Butter And Jelly Principles Of Economics: Macroeconomics Principles Of Economics: Microeconomics

micro econ exam 2 – Flashcards 96 terms

Larry Charles

96 terms

Preview

AP Economics AP Microeconomics Average Total Cost Average Variable Cost Long Run Average Cost Managerial Economics

Microeconomics Chapter 9 Answers – Flashcards 38 terms

Roy Johnson

38 terms

Preview

Average Total Cost Average Variable Cost Managerial Economics Principles Of Economics: Macroeconomics Principles Of Economics: Microeconomics

Econ Chapter 8 Test Questions – Flashcards 102 terms

Claire Forth

102 terms

Preview

AP Microeconomics Average Variable Cost Microeconomics Principles Of Economics: Microeconomics

chapter 5 – Flashcard 20 terms

Bettina Hugo

20 terms

Preview

AP Microeconomics Average Total Cost Average Variable Cost Economics Managerial Economics Principles Of Economics: Macroeconomics Principles Of Economics: Microeconomics

Chapter 12 – Practice Problems – Flashcards 48 terms

Brooke Sharp

48 terms

Preview

Average Variable Cost Flashcards, test questions and answers

We've found 10 Average Variable Cost tests

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards