MSU ECON 101 Final Exam Questions With Correct Answers

MSU ECON 101 Final Exam Questions With
Correct Answers


Perfect Competition - CORRECT ANSWER✔✔-many firms, identical
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products


Monopoly - CORRECT ANSWER✔✔-one firm, no similar products
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Profit - CORRECT ANSWER✔✔-Total Revenue - Total Cost
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Total Revenue - CORRECT ANSWER✔✔-Price x Quantity
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Accounting Profit - CORRECT ANSWER✔✔-Total Revenue - Explicit Costs
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Explicit Costs - CORRECT ANSWER✔✔-out-of-pocket costs
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Economic Profit - CORRECT ANSWER✔✔-Total Revenue - (Explicit +
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Implicit)


Implicit Costs - CORRECT ANSWER✔✔-opportunity costs of using
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resources already owned by the firm
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, Private Enterprise - CORRECT ANSWER✔✔-ownership of businesses by
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private individuals |




Fixed Costs - CORRECT ANSWER✔✔-short term, expenditures that don't
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change regardless of the level of production
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Example: rent, machinery costs | | |




Variable Costs - CORRECT ANSWER✔✔-the more you produce, greater
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the variable cost
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Example: labor, raw materials | | |




Total Costs can be broken down into: - CORRECT ANSWER✔✔-Fixed
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costs and variable costs
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More output = greater total cost
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Diminishing Marginal Returns - CORRECT ANSWER✔✔-at a given level
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of fixed costs, each additional input contributes less & less to overall
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production |