The return to any factor of production that is in fixed supply is
A. producer surplus.
B. factor surplus.
C. pure profit.
D. pure rent.
Answer: D
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Which of the following is NOT a component of private investment, for purposes of GDP accounting?
A) additions to firms' stock of inventories B) newly produced housing C) newly built factories D) purchases by firms of used machinery
Expenditures on advertising ________
A) can lower average total cost if the advertising increases the quantity sold by a large enough amount B) cannot lower average total cost because when a firm advertises it increases its costs C) always lower average total cost because whenever a firm advertises, it increases the quantity sold D) are variable costs so do not affect the average total cost
If two perfectly competitive firms produce the same quantity at the market price, then, at that quantity, they must have the same
a. marginal cost and average total cost b. marginal cost and average fixed cost c. average total cost and average fixed cost d. average fixed cost and average variable cost e. marginal cost
If two partners have a firm with more debt than assets,
a. the business is a success b. the partners are equally liable for the debt c. there is a limit to their personal liability d. each one's liability is limited to the investment made in the business e. the burden of debt is proportionate to the partners' original investment