Posted: June 20th, 2022
ECO 561 Week 2 Knowledge check (All 14 MCQ) 1 . Purely competitive firms increase total revenue by· 2 . What are two ways for a competitive firm to determine the optimal level of production, that is, the level of production that will maximize profit or minimize losses?· 3 . Suppose that a firm determines that its marginal revenue is greater than its marginal cost, it would be better to· 4 . It is profitable for a firm to continue employing additional resources as long as· 5 . As additional units are produced, the marginal revenue product falls for all firms because marginal product decreases. For firms operating in industries that are not perfectly competitive, marginal revenue product also falls because· 6 . All things being equal, an increase in demand for a product,· 7 . Marginal cost can be defined as the addition to _____ of one more unit of output.· 8 . If a firm stars small and, over time, builds successively larger plant sizes or adds additional work space in an office, average total costs are most likely to9 . Demand for resources, including labor, depend on its· 10 . The primary difference between increasing- and decreasing-cost industries lies in· 11 . When adding labor or other factors of production, businesses may see their total product rise, but see their per-unit increase in return for each additional unit diminish. This phenomenon·12 . In the short run, firms should shut down if13 . When you are considering the value of a resource in its next best use, you are considering its· 14 . Of the four major market structures–perfectly competitive, monopolistic competition, oligopoly, monopoly–reducing variable costs of production
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