ECON 1002 WEEK 4 QUIZ WITH ANSWERS

Suppose the market price of lobster suddenly increases substantially. We can expect that most lobstermen will: All of the following are characteristics of perfectly competitive markets except: In a firm’s production planning horizon, the “long-run” refers to Assume Firm A has half the fixed costs of Firm B, but they have the same variable costs and total revenue for all quantities. Which of the following statements is true? Suppose a barbershop that has fixed costs equal to $900/month and total costs equal to $4,000/month. This shop will continue to operate in the short run as long its total revenue is greater than: Assume a firm’s average total cost equals $80 and average variable cost equals $70 at the current level of production. If the marginal cost of producing the next unit equals $75, then: