If a product has a diminishing, but positive, marginal utility, then total utility
A. increases at a diminishing rate.
B. decreases at a diminishing rate.
C. decreases at an increasing rate.
D. will become negative.
Answer: A
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A company currently sells 10,00 . units at $9/unit and makes $20,00 . accounting profit. Variable costs currently stand at $6 per unit. By how much would variable costs have to increase before the company makes zero accounting profits?
a. $1.00 b. $2.00 c. $3.00 d. $4.00
At the point where diminishing marginal returns set in, the slope of the total product curve is
a. positive and increasing b. positive and decreasing c. negative and increasing d. negative and decreasing e. constant
Which of the following statements is true about monopolistically competitive firms?
A) Unlike perfectly competitive firms, monopolistically competitive firms are able to raise their prices without losing all of their customers. B) Like perfectly competitive firms, monopolistically competitive firms are not able to raise prices without losing all of their customers because they face competition from firms selling similar products. C) Like perfectly competitive firms, monopolistically competitive firms maximize their profits by setting price equal to marginal cost. D) Unlike perfectly competitive firms, monopolistically competitive face perfectly inelastic demand curves.
Which of the following is true?
A) A firm's accounting profit is equal to its economic profit. B) Opportunity costs are the same as explicit costs. C) A firm's net income is the same as its accounting profit. D) If a firm's accounting profits are positive, its economic profits must also be positive.