Unt Econ 1100 Exam 2: Dadres Questions With Correct Answers 2024

The downward-sloping portion of a LRAC curve implies: {Ans: economies of scale exist over that range of the curve.}Based on the information in the table below, this firm has total fixed costs equal to: {Ans: $45}Suppose at the profit-maximizing/loss-minimizing level of output P = $6, ATC = $7, and AVC = $5. A firm in this situation will: {Ans: minimize its losses by continuing to produce where MR = MC in the short run.}Industry output is efficient when: {Ans: MB = MC for each firm.}A decrease in market demand for output produced in a perfectly competitive industry: {Ans: leads to a decrease in the individual firm's marginal revenue.}The long run is a period for which: {Ans: all inputs and all costs are variable.}An efficient level of an output exists when: {Ans: marginal benefit is equal to marginal cost.}When output sells for a price that is higher than its marginal cost to the seller (the minimum price the seller is willing to accept), the seller: {Ans: enjoys a producer surplus.}Which of the following is not an example of government response to a market failure? {Ans: A privately-owned business that does not allow