Econ 212 || ALL SOLVED!!
Economic Rent correct answers Payment of use of any resource above opportunity cost
Disadvantage of Corporate form of business organization correct answers Double taxation
Economic profit can be calculated as correct answers Total revenue-explicit costs-implicit
cost
In a partnership legal responsibility for all debts is correct answers Shared by partners
Implicit costs are measured by correct answers The value of the next best alternative use of
inputs
Interest is paid to correct answers Owners of capital
The greater the risk of non-payment of a loan the correct answers Higher expected rate of
interest
Businesses demand funds because correct answers They make investments that they believe
will increase productivity and profitability
A share of stock in a corporation is correct answers Legal claim to a share of companies
future profits
Economists generally define the short run as being correct answers Period of time in which at
least one of the firms inputs,usually plant size, is fixed
Concept of the production function implies that a firm using resources inefficiently will
correct answers Obtain less output than the theoretical production function shows
Average physical product by dividing total product by the correct answers Quantity of
variable input
Marginal productivity of labor will eventually decrease as more workers are employed
because correct answers On average each worker will have fewer inputs to work with
A fixed cost is a cost that correct answers Does not vary with the level of output
At the output rate at which diminishing marginal product begin, a firm will experience
correct answers Increasing marginal costs
The planning horizon is defined as correct answers The long run during which all inputs are
variable
Depreciation correct answers Is NOT a reason for economies of scale
Due to extremely large fixed costs an electricity plant may experience correct answers
Economies of scale
Economic Rent correct answers Payment of use of any resource above opportunity cost
Disadvantage of Corporate form of business organization correct answers Double taxation
Economic profit can be calculated as correct answers Total revenue-explicit costs-implicit
cost
In a partnership legal responsibility for all debts is correct answers Shared by partners
Implicit costs are measured by correct answers The value of the next best alternative use of
inputs
Interest is paid to correct answers Owners of capital
The greater the risk of non-payment of a loan the correct answers Higher expected rate of
interest
Businesses demand funds because correct answers They make investments that they believe
will increase productivity and profitability
A share of stock in a corporation is correct answers Legal claim to a share of companies
future profits
Economists generally define the short run as being correct answers Period of time in which at
least one of the firms inputs,usually plant size, is fixed
Concept of the production function implies that a firm using resources inefficiently will
correct answers Obtain less output than the theoretical production function shows
Average physical product by dividing total product by the correct answers Quantity of
variable input
Marginal productivity of labor will eventually decrease as more workers are employed
because correct answers On average each worker will have fewer inputs to work with
A fixed cost is a cost that correct answers Does not vary with the level of output
At the output rate at which diminishing marginal product begin, a firm will experience
correct answers Increasing marginal costs
The planning horizon is defined as correct answers The long run during which all inputs are
variable
Depreciation correct answers Is NOT a reason for economies of scale
Due to extremely large fixed costs an electricity plant may experience correct answers
Economies of scale
