Answer to Question #181947 in Macroeconomics for James

Question

QUESTION 8

Profit is:

1. Always positive.
2. What’s left over from revenues after the firm pays all other costs.
3. The residual.
4. Both answers A and B above.
5. Both answers B and C above.

QUESTION 9Mathematically, marginal cost:

1. Cannot exist.
2. Will always be negative.
3. Could never be negative.
4. Is the change in total cost divided by the change in output.
5. Is the change in output compared to the change in total cost.

QUESTION 10

Fixed cost are expenditures that do not change regardless of the level of production:

1. Because fixed inputs do not change in the short run.
2. Because fixed inputs always change in the short run.
3. Only if the firm is experiencing economies of scale.
4. Only if the firm is experiencing diminishing marginal product.
5. Are set on Mars. 

QUESTION 11

The amount of fixed costs varies:

1. In the short run.
2. Whenever pollution occurs.
3. Along with the number of workers hired.
4. According to the specific line of business.
5. In the level of acidity.

Answer 1

8. 2

9. 4

10. 1

11. 3