Question 11 pts
Accounting profit is defined as
total sales – (explicit costs + implicit costs).total sales – explicit costs – implicit costs.total opportunity costs.total monetary costs.total implicit costs.
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Question 21 pts
A firm that owns a car rental agency, a modeling agency, a French bakery, and a pet store is
a conglomerate.a perfect competitor.inefficient.vertically integrated.horizontally integrated.
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Question 31 pts
Nonprofit firms, both private and governmental, may differ in behavior from profit-seeking private firms because
private firms do not compete with government firms.government firms are more difficult to manage.government managers seek more capital-intensive means of production.the demand for the products is inherently different.there is no residual claimant.
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Question 41 pts
What is one thing that entrepreneurs do NOT do?
They identify consumer demands.They establish supply and demand.They organize production.They allocate resources.They acquire assets.
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Question 51 pts
The short-run marginal cost curve falls and then rises because of
fixed costs.diseconomies of scale.diseconomies and economies of scale.the principle of diminishing returns.
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Question 61 pts
Ralph’s Travel Agency had accounting profits of $50,000 and implicit costs of $30,000. What were economic profits?
$50,000$30,000$20,000The amount cannot be determined from the information given.
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Question 71 pts
Average fixed cost plus average variable cost equals
marginal cost.total cost.average total cost.total variable cost.marginal fixed cost.
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Question 81 pts
An example of a horizontally integrated firm is one that
uses highly automated assembly line techniques.owns several plants in the same state.owns several plants, each manufacturing the same product.produces a variety of goods and sells them in widely disparate markets.owns several plants, each handling a different stage of production.
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Question 91 pts
Firms exist for all but which one of the following reasons?
To reduce transactions costsTo produce thingsTo organize teamsTo monitor shirkingTo reduce the costs of buying
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Question 101 pts
A firm that owns a wheat farm, a grain elevator, a flour mill, a commercial bakery, and a grocery store chain is
a conglomerate.an imperfect competitor.a monopoly.vertically integrated.horizontally integrated.
