# 1. there are 100 dog kennels in atlanta. an economist studying the

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1. There are 100 dog kennels in Atlanta. An economist studying the pricing behavior of dog kennels tells you that she is limiting her analysis to a time period that does not allow for any new dog kennels to enter the industry or for any established dog kennels to leave the industry. The time period this economist referred to is the (Points : 1) A market period.B industry run.C long run.D short run.

2. If Microsoft is earning a rate of return greater than the return necessary for the business to continue operations in the long run, then (Points : 1) A total costs exceed total revenue.B total costs exceed a normal rate of return.C the normal rate of return is zero.D the firm is earning an economic profit.

3. As long as price is sufficient to cover ________, the firm is better off by operating rather than by shutting down. (Points : 1) A marginal costB average fixed costC average variable costD marginal revenue
4. If revenues exceed ________, operating profit is ________. (Points : 1) A total cost; negativeB fixed cost; positiveC variable cost; negativeD variable cost; positive

5. Economic costs (Points : 1) A include both a normal rate of return on investment and the opportunity cost of each factor of production.B are equal to the direct costs of hiring all factors of production.C are the opportunity cost of each factor of production minus any interest charges paid on borrowed funds.D are equal to total revenue minus accounting profit.
6. Total variable costs (Points : 1) A initially increase as output increases and then decrease.B always decrease with output.C always increase with output.D initially decrease and then increase with output.
7. Average fixed costs (Points : 1) A are the costs associated with producing an additional unit of output.B provide a per unit measure of costs.C fall as output rises.D reach their minimum at the output level where the average fixed cost curve is intersected by the marginal cost curve.
8. The explanation for why marginal cost is positive and rising in the short run is ________ marginal product of labor in the production process. (Points : 1) A a zeroB a constantC an increasingD a diminishing

9. When a large amount of output is produced per unit of the input, the input is said to exhibit (Points : 1) A high productivity.B low productivity.C marginal productivity.D derived productivity.
10. When Burger Barn hires one worker, 20 customers can be served in an hour. When Burger Barn hires two workers, 50 customers can be served in an hour. The marginal product of the second worker is ________ customers served per hour. (Points : 1) A 15B 30C 40D 67.5

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