The difference between average total costs and average variable costs is :

Select one:

a.

marginal cost.

b.

fixed cost.

c.

None of the statements associated with this question are correct.

d.

average fixed cost.

Economies of scale exist whenever:

Select one:

a.

average total costs increase as output increases.

b.

average total costs increase as output increases and average total costs are stationary as output increases.

c.

average total costs are stationary as output increases.

d.

average total costs decline as output increases.

Total costs ________ with increasing output.

Select one:

a.

initially decrease and then increase

b.

always increase

c.

initially increase and then decrease

d.

always decrease

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e -mail. What is the opportunity cost of attending the concert for John?

Select one:

a.

attending a movie, studying for an economics exam, and answering his e-mail

b.

studying for an economics exam

c.

answering his e-mail

d.

attending a movie

In a perfectly competitive market:

Select one:

a.

no single buyer or seller can significantly affect the market price.

b.

there is a single seller.

c.

there are a few buyers.

d.

there is a cartel.

A firm in a perfectly competitive market has no control over price because

Select one:

a.

the market demand for products produced in perfectly competitive markets is perfectly price inelastic.

b.

no firm may freely enter into and/or exit from the market.

c.

each firm's product perfectly substitutes for every other firm's product.

d.

the government imposes price ceilings on the products produced in perfectly competitive markets.