In the short run, when a firm produces zero output, variable cost equals
A. Total cost.
B. Marginal cost.
C. Zero.
D. Fixed cost.
Answer: C
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Gross investment is equal to ________
A) net investment plus depreciation B) net investment divided by depreciation C) net investment minus depreciation D) net investment times depreciation
What is the profit maximizing condition for a vertically integrated firm?
A) Net marginal revenue equals the sum of the marginal costs of the intermediate inputs. B) Marginal revenue equals the marginal cost of the final output. C) Net marginal revenue equals the marginal cost of each intermediate good. D) The sum of net marginal revenues equals the marginal cost of the final output.
Which of the following is considered a microeconomic issue?
A. The unemployment rate in the US from 1980-2014. B. Apple releases a new version of the iPhone. C. France’s growth rate in the last year. D. All of these are examples of microeconomic issues.
In the IO perspective it is important to enter an industry with
a. Low supplier power b. Low threat from substitutes c. Low levels of rivalry between firms d. All of the above