A college student is thinking about running an ice-cream truck over the summer. Which of the following would likely be an ongoing expense of the business?
A. The cost of the gasoline used
B. The cost of ice cream scoopers
C. The cost of the truck
D. None of these is an ongoing expense.
Answer: A
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In a perfectly competitive market
A. demand facing the industry is perfectly elastic. B. a firm must lower price to attract more customers. C. the additional revenue from selling one more unit of output is less than price. D. all of the above E. none of the above
Minimum efficient scale
A) is the point at which economies of scale begin for a particular firm. B) is the lowest rate of output per unit of time at which long-run average costs reach a minimum for a particular firm. C) applies only to firms with U-shaped long-run average cost curves. D) is the point at which diseconomies of scale begin for a particular firm.
Which of the following statements is correct about the demand curve of the perfectly competitive industry?
A. The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal. B. The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms. C. The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product. D. The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.
What do stocks represent?
A. Shares of ownership in a corporation and a guaranteed stream of profits B. Shares of ownership in a corporation and an entitlement to its future profits C. Debt contracts with a corporation and regular interest payments on the loan D. Debt contracts with a corporation and variable interest payments on the loan