27. what is the change in total cost equal to?
Marginal cost muiplied by quantity
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