27 What is the change in total cost equal to?Marginal cost multiplied by quantityMarginal cost


27. what is the change in total cost equal to?

Marginal cost muiplied by quantity

Marginal cost

muiplied change in quantity

Marginal cost muiplied by total cost

Marginal cost divided by total cost

28. Which condition must be satisfied for a competitive firm to shut down in a short run

Total variable cost are greater than total revenue

Total revenue covers total variable costs

Total fixed costs are greater than total revenue

Total revenue is equal to price

29. What will a competitive firm do in the short run if its average variable cost exceeds price?

It will expand production

It will shut down

It will produce to make economic profit

It will prevent other firms from entering the industry

30. what is a characteristics of a monopoly’s demand curve?

It is the same as the marginal revenue curve

It is the same as the market demand curve

It is the same as the supply curve

It is more elastic than the demand curve of a competitive firm

31. Which statement describes a monopoly demand curve?

It is perfectly inelastic

It is perfectly elastic

It is less elastic than a perfectly competitive firms demand curve

It is the same as its marginal revenue curve

32. what is the profit maximization condition for a monopoly?

Where marginal cost is minimized

Where total revenues are maximized

Where price equals marginal cost

Where marginal revenue equals marginal cost

33. What is a characteristic of monopolistic competition?

Firms have equal market power

Many firms sell identical products

Firms avoid advertising

Many firms sell differentiated products

34. How does self-interest influence each prisoners decision in the prisoner’s dilemma?

Neither prisoner will likely confess

One prisoner will confess while the other will not

Both prisoners will likely confess

Authorities will withhold a deal from both prisoners

35. Why is studying the prisoner’s dilemma applicable to business?

It provides insights into why cooperation is individually rational

It is a game in which only two players have a dominant strategy

It challenges the ideas of a single dominant strategy

It demonstrates the value of mapping out a potential strategy given actions of rivals