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Economists assume the principal motivation of producers is
Profit
Profit
Is the difference between total revenue and total cost
The $600 paid in property taxes counts as
An explicit cost.
Assuming the entrepreneur does not pay herself, the $1,000 she could earn as an employee elsewhere is considered
An implicit cost.
A monopoly occurs when
There is only one producer of a good or service.
The perfectly competitive market structure includes all of the following except
Large advertising budgets.
In which of the following types of markets does a single firm have the most market power?
Monopoly.
A perfectly competitive firm is a price taker because
The price of the product is determined by many buyers and sellers.
The market price for T-shirts sold in a perfectly competitive market is determined by
Supply and demand.
The demand curve for each perfectly competitive firm is
Horizontal.
A firm's total revenue can be determined by
Price times quantity.
The short run is the time period
In which some costs are fixed.
A firm maximizes total profit when
Total revenue exceeds total cost by the greatest amount.
Which of the following represents the change in total cost that results from a one-unit increase in production?
Marginal cost.
The difference between the total revenue and total cost curves at a given output is equal to
Total profit.
%50.
200 units.
Short-run profits are maximized at the rate of output where
Marginal revenue is equal to marginal cost.
D.
Economic profits will be zero.
The firm will have above-normal profits.
39.
The firm is experiencing economic losses but should continue to produce.
The shutdown point occurs where price is below the minimum of
AVC.