A firm's opportunity costs ___________________.

include explicit costs and implicit costs
increase when economies of scope exist
do not include implicit costs because implicit costs have no monetary value
equal its explicit costs

Lucinda starts a business consulting company. She makes all the business decisions and bears the risk of running the business. Lucinda expects to receive _____________________.

normal profit
revenue greater than the capital investment
revenue greater than her opportunity cost
economic profit

Total revenue minus the sum of implicit and explicit costs is equal to _______ profit.

economic
opportunity
entrepreneurial
normal

Emma owns a firm that produces raincoats. Currently, Emma produces 25 raincoats a day. Emma cannot produce more raincoats in a day unless she purchases another sewing machine. Emma is _______ efficient.

technologically
entrepreneurially
consumer
economically

All of the following statements are false except _____________________________.

economic efficiency implies technological efficiency
technological efficiency implies the lowest costs of production
economic efficiency implies maximum output with maximum inputs
technological efficiency implies economic efficiency

A major disadvantage of a proprietorship is that ____________________.

the owner's entire wealth is at risk
the firm has perpetual life
the owner has limited liability
the profits are taxed twice

The Herfindahl-Hirschman Index is smaller in _______ market than in _______ market.

a perfectly competitive; a monopolistic
a monopolistic; a monopolistic competitive
an oligopolistic; a perfectly competitive
a monopolistic; a perfectly competitive

Andy wants to purchase a golden retriever. Andy buys newspapers to read the classified advertisements and he buys dog magazines to check out the locations of golden retriever breeders. Andy has incurred the _______ costs of making a purchase.

transaction
private
market
buying

A firm that hires various specialists to work on a range of projects experiences ________________________.

economies of scope
increasing normal profit
increasing economic profit
economies of scale

_______ coordinate most of our economic activity because firms can _______.

Firms and markets; organize efficient team production
Firms and markets; reap economies of scale
Markets; have a principal-agent problem
Firms and not markets; organize efficient team production

Please enter your name and press the SEND button