Economists normally assume that the goal of a firm is to
maximize its total revenue.
maximize its profit.
minimize its explicit costs.
minimize its total cost.
If Darren sells 300 glasses of iced tea at $0.50 each, his total revenues are
$150.
$299.5
$300.
$600.
Trevor’s Tire Company produced and sold 500 tires. The average cost of production per tire was $50. Each tire sold for a price of $65. Trevor’s Tire Company’s total costs are
$7,500.
$25,000.
$32,500.
$67,000.
Ryan is a wheat farmer, but he also spends part of his day teaching guitar lessons. Due to the popularity of his local country western band, Farmer Ryan has more students requesting lessons than he has time for if he is to also maintain his farming business. Farmer Ryan charges $25 an hour for his guitar lessons. One spring day, he spends 10 hours in his fields planting $130 worth of seeds on his farm. He expects that the seeds he planted will yield $300 worth of wheat.
What is the total opportunity cost (Economics Cost) of the day that Farmer Ryan spent in the field planting wheat?
$130
$250
$300
$380
Ryan is a wheat farmer, but he also spends part of his day teaching guitar lessons. Due to the popularity of his local country western band, Farmer Ryan has more students requesting lessons than he has time for if he is to also maintain his farming business. Farmer Ryan charges $25 an hour for his guitar lessons. One spring day, he spends 10 hours in his fields planting $130 worth of seeds on his farm. He expects that the seeds he planted will yield $300 worth of wheat.
Ryan’s accountant would calculate the total cost of his farming to equal
$25.
$130.
$300.
$380.
Ryan is a wheat farmer, but he also spends part of his day teaching guitar lessons. Due to the popularity of his local country western band, Farmer Ryan has more students requesting lessons than he has time for if he is to also maintain his farming business. Farmer Ryan charges $25 an hour for his guitar lessons. One spring day, he spends 10 hours in his fields planting $130 worth of seeds on his farm. He expects that the seeds he planted will yield $300 worth of wheat.
Ryan’s accounting profit equals
$-80.
$130.
$170.
$260.
Ryan is a wheat farmer, but he also spends part of his day teaching guitar lessons. Due to the popularity of his local country western band, Farmer Ryan has more students requesting lessons than he has time for if he is to also maintain his farming business. Farmer Ryan charges $25 an hour for his guitar lessons. One spring day, he spends 10 hours in his fields planting $130 worth of seeds on his farm. He expects that the seeds he planted will yield $300 worth of wheat.
Ryan’s economic profit equals
$-130.
$-80.
$130.
$170.
On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product?
The farmer is able to produce 5,600 bushels of wheat when he hires 4 workers.
The farmer is able to produce 5,800 bushels of wheat when he hires 4 workers.
The farmer is able to produce 6,000 bushels of wheat when he hires 4 workers.
Any of the above could be correct.
For a construction company that builds houses, which of the following costs would be a fixed cost?
the $50,000 per year salary paid to a construction foreman
the $30,000 per year salary paid to the company’s bookkeeper
the $10,000 per year premium paid to an insurance company
All of the above are correct.
In the long run Firm A incurs total costs of $1,050 when output is 30 units and $1,200 when output is 40 units. Firm A exhibits:
diseconomies of scale because total cost is rising as output rises.
diseconomies of scale because average total cost is rising as output rises.
economies of scale because total cost is rising as output rises.
economies of scale because average total cost is falling as output rises.
