AnswersEconomicsMicroeconomics

Microeconomics — Test Answers

25 verified answers
21
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Profit equals the total amount of money made minus

A
supply.
B
prices.
C
revenue.
D
expenses.
22
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Equilibrium is defined when

A
supply is limited and demand decreases.
B
supply and demand meet.
C
supply is higher than demand.
D
demand is higher than supply.
23

All else being equal, which bakery has the absolute advantage?

A
Mrs. Track’s
B
The Bakeshop
C
Chips
D
Uncle John’s
24

Which manufacturer has the absolute advantage?

A
Frozen Treats
B
The Dairy
C
Bob & Gary’s
D
Ice Cream, Inc.
25

What most likely will happen if the pie maker continues to make additional pies?

A
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
B
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
C
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
D
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.

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