exam competitive firms practice

total revenue minus total cost equals?
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total revenue minus total cost equals?
profit
You own and are the only employee of a company that writes computer software that gamblers use to collect sports data. Last year your total revenue was $90,000. Your costs for equipment, rent, and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a $40,000 a year return.

During the year, your economic costs were?
a. 90,000
b. 100,000
c. 40,000
d. 60,000
A.
You own and are the only employee of a company that writes computer software that gamblers use to collect sports data. Last year your total revenue was $90,000. Your costs for equipment, rent, and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a $40,000 a year return.

Your accounting profit last year was?
a. 60,000
b. 30,000
c. 40,000
d. 10,000
c.
You own and are the only employee of a company that writes computer software that gamblers use to collect sports data. Last year your total revenue was $90,000. Your costs for equipment, rent, and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a $40,000 a year return.

Your economic profit last year was?
a. 10,000
b. 0
c. -10,000
d. -40,000
B.
5. In the long run, a firm
A. has no fixed factors of production.
B) can vary all inputs, but it cannot change the mix of inputs it uses.
C) can shut down, but it cannot exit the industry.
D) must make positive economic profits.
a.
Fixed costs
A) are total costs minus average variable costs.
B) depend on a firm's level of output.
C) do NOT exist in the long run.
D) are zero if a firm produces no output.
c.
Economists usually assume that ________ is a fixed input in the ________ run.
A) labor; short
B) capital; long
C) capital; short
D) labor; long
c.
Economists usually assume that labor is ________ input in the ________ run.
A) a fixed; short
B) a fixed; long
C) part fixed and part variable; long
D) a variable; short
d.
The Lawn Ranger, a landscaping company, has total costs of $5,000 and total variable costs of $1,000. The Lawn Ranger's total fixed costs are
A) $4,000.
B) $0.
C) $6,000.
D) indeterminate because the firm's output level is unknown.
c.
The Lawn Ranger, a landscaping company, has total costs of $7,000 and total fixed costs of $5,000. The Lawn Ranger's total variable costs are
A) $5,000.
B) $3,000.
C) $2,000.
D) indeterminate because the firm's output level is unknown.
C.
Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $6 and its total variable cost is $400. The total cost of producing 100 widgets is ________ . A)$306. B)$400. C)$600. D)$1,000.dFirms can ________ their ________ costs in the short run. A) not change; fixed B) change; fixed C) change; overhead D) not change; variableaMarginal cost is the A)increase in AVC resulting from producing one more unit of output. B)increase in total cost resulting from producing one more unit of output. C)equivalent of average total cost. D)average cost of production divided by output.b.