Mod 7 Review - Custom Scholars
Home » Flash Cards » Mod 7 Review

# Mod 7 Review

question
To find its profit-maximizing output level, a firm should operate where

MC = MR.
AVC = MC.
AFC = AVC.
TFC = TVC.
answer
MC = MR.
question
A company draws its total cost curve and total revenue curve on the same graph. If the firm wishes to maximize profits, it will select the output at which the

slope of the total revenue curve is greatest.
horizontal distance between the two curves is greatest.
vertical distance between the two curves is greatest.
total cost curve cuts the total revenue curve.
answer
vertical distance between the two curves is greatest.
question
In arriving at the quantity of output and price of its product, a company

generally leaves both quantity and price decisions to consumers.
has no control over either quantity or price.
makes two decisions by setting both optimal output and optimal price.
chooses either output or price, and consumer demand determines the other.
answer
chooses either output or price, and consumer demand determines the other.
question
Marginal revenue is defined as

the change in average revenue from a one-unit change in output.
the change in total revenue from a one-unit change in output.
the change in total revenue from a unit change in price.
the change total cost from a one-unit change in output.
answer
the change in total revenue from a one-unit change in output.
question
A profit-maximizing firm always

produces every unit of output for which MR > MC.
hires labor until the MRP of labor = 0.
sells its output at P = MR.
produces at the output at which MR = 0.
answer
produces every unit of output for which MR > MC.
question
When a firm's fixed cost increases,

variable cost increases.
it would not need to change output.
the firm needs to adjust its price and quantity to restore the profit maximum.
marginal cost increases.
answer
it would not need to change output.
question
If a company plots its total profit curve, it would show

that slope is a constant at a value of one.
that the curve has a negative slope over the entire range of output.
that the slope of the curve is negative, then zero and then becomes positive as output increases.
that the slope of the curve is positive, then zero and then becomes negative as output increases.
answer
that the slope of the curve is positive, then zero and then becomes negative as output increases.
question
Total profit = Total revenue − Total cost (including opportunity cost).
Total profit defined in this way is called

absolute profit.
relative profit.
accounting profit.
economic profit.
answer
economic profit.
question
For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of \$11 and a marginal cost of \$10. It follows that the

production of the 101st unit of output must increase the firm's profit by more than \$1.
production of the 100th unit of output increases the firm's profit by \$1.
firm's profit-maximizing level of output is less than 100 units.
production of the 100th unit of output increases the firm's average cost by \$1.
answer
production of the 100th unit of output increases the firm's profit by \$1.
question
An airline can profit by offering standby customers an unsold seat at a substantial discount just before takeoff because

additional passengers add little to fixed costs.
such passengers add more to profits than do those with reserved seats.
the marginal cost of additional passengers is very small.
additional passengers are needed to balance the load.
answer
the marginal cost of additional passengers is very small.
question
The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which

total revenue is equal to fixed cost.
profit is maximized.
total revenue is equal to total cost.
total revenue is equal to variable cost.
answer
profit is maximized.
question
The optimal number of units to produce is best expressed when

marginal benefit exceeds marginal cost.
marginal cost exceeds marginal benefit.
marginal benefit and marginal cost are equal to zero.
marginal benefit and marginal cost are close to equal.
answer
marginal benefit and marginal cost are close to equal.
question
If a firm finds itself at an output level where MR < MC, then the firm

should increase output.
should raise the price of its product.
should decrease output.
should shut down, since it is losing money.
answer
should decrease output.
question
A firm can use its demand curve to calculate

economic profit.
production costs.
total revenue.
accounting profit.
answer
total revenue.
question
A firm's price is

greater than average revenue.
greater than marginal revenue.
equal to average revenue.
less than marginal cost.
answer
equal to average revenue.
question
Marginal profit is the addition to a firm's total profit from a

one-unit change in its output.
reduction in marginal cost.
reduction in total cost.
\$1 change in its price.
answer
one-unit change in its output.
question
Maureen left her teaching job, which paid \$30,000 per year, and invested \$20,000 of her retirement fund (which was earning 10 percent interest) in a new real estate business. Her accountant predicted a \$60,000 revenue the first year. Her husband, an economist, forecast her profit to be

\$28,000.
\$32,000.
\$60,000.
\$10,000.
answer
\$28,000.
1 of 17
question
To find its profit-maximizing output level, a firm should operate where

MC = MR.
AVC = MC.
AFC = AVC.
TFC = TVC.
answer
MC = MR.
question
A company draws its total cost curve and total revenue curve on the same graph. If the firm wishes to maximize profits, it will select the output at which the

slope of the total revenue curve is greatest.
horizontal distance between the two curves is greatest.
vertical distance between the two curves is greatest.
total cost curve cuts the total revenue curve.
answer
vertical distance between the two curves is greatest.
question
In arriving at the quantity of output and price of its product, a company

generally leaves both quantity and price decisions to consumers.
has no control over either quantity or price.
makes two decisions by setting both optimal output and optimal price.
chooses either output or price, and consumer demand determines the other.
answer
chooses either output or price, and consumer demand determines the other.
question
Marginal revenue is defined as

the change in average revenue from a one-unit change in output.
the change in total revenue from a one-unit change in output.
the change in total revenue from a unit change in price.
the change total cost from a one-unit change in output.
answer
the change in total revenue from a one-unit change in output.
question
A profit-maximizing firm always

produces every unit of output for which MR > MC.
hires labor until the MRP of labor = 0.
sells its output at P = MR.
produces at the output at which MR = 0.
answer
produces every unit of output for which MR > MC.
question
When a firm's fixed cost increases,

variable cost increases.
it would not need to change output.
the firm needs to adjust its price and quantity to restore the profit maximum.
marginal cost increases.
answer
it would not need to change output.
question
If a company plots its total profit curve, it would show

that slope is a constant at a value of one.
that the curve has a negative slope over the entire range of output.
that the slope of the curve is negative, then zero and then becomes positive as output increases.
that the slope of the curve is positive, then zero and then becomes negative as output increases.
answer
that the slope of the curve is positive, then zero and then becomes negative as output increases.
question
Total profit = Total revenue − Total cost (including opportunity cost).
Total profit defined in this way is called

absolute profit.
relative profit.
accounting profit.
economic profit.
answer
economic profit.
question
For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of \$11 and a marginal cost of \$10. It follows that the

production of the 101st unit of output must increase the firm's profit by more than \$1.
production of the 100th unit of output increases the firm's profit by \$1.
firm's profit-maximizing level of output is less than 100 units.
production of the 100th unit of output increases the firm's average cost by \$1.
answer
production of the 100th unit of output increases the firm's profit by \$1.
question
An airline can profit by offering standby customers an unsold seat at a substantial discount just before takeoff because

additional passengers add little to fixed costs.
such passengers add more to profits than do those with reserved seats.
the marginal cost of additional passengers is very small.
additional passengers are needed to balance the load.
answer
the marginal cost of additional passengers is very small.
question
The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which

total revenue is equal to fixed cost.
profit is maximized.
total revenue is equal to total cost.
total revenue is equal to variable cost.
answer
profit is maximized.
question
The optimal number of units to produce is best expressed when

marginal benefit exceeds marginal cost.
marginal cost exceeds marginal benefit.
marginal benefit and marginal cost are equal to zero.
marginal benefit and marginal cost are close to equal.
answer
marginal benefit and marginal cost are close to equal.
question
If a firm finds itself at an output level where MR < MC, then the firm

should increase output.
should raise the price of its product.
should decrease output.
should shut down, since it is losing money.
answer
should decrease output.
question
A firm can use its demand curve to calculate

economic profit.
production costs.
total revenue.
accounting profit.
answer
total revenue.
question
A firm's price is

greater than average revenue.
greater than marginal revenue.
equal to average revenue.
less than marginal cost.
answer
equal to average revenue.
question
Marginal profit is the addition to a firm's total profit from a

one-unit change in its output.
reduction in marginal cost.
reduction in total cost.
\$1 change in its price.
answer
one-unit change in its output.
question
Maureen left her teaching job, which paid \$30,000 per year, and invested \$20,000 of her retirement fund (which was earning 10 percent interest) in a new real estate business. Her accountant predicted a \$60,000 revenue the first year. Her husband, an economist, forecast her profit to be

\$28,000.
\$32,000.
\$60,000.
\$10,000.
answer
\$28,000.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
• 24/7 support
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
• Expert Proofreading
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

## Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

### Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Order your essay today and save 20% with the discount code BEGOOD