Unit Test Answers

The chart shows the marginal cost of producing soccer nets for Sabrina’s Soccer. What is the marginal cost of producing a fifth soccer net?

True or False? Higher opportunity costs equal a greater comparative advantage.

To generate higher profits, producers must work to

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores. Which factors directly affect the company’s profit? Check all that apply.a stocking up on soccer cleats and uniformsa rise in the number of soccer leaguesa decrease in the cost of raw materialsthe opening of two sporting goods storesthe push for physical activities in schools

Profit equals the total amount of money made minus

Which best describes how the government sanctions technological monopolies?

This table shows the cost of producing ice cream for several manufacturers.Manufacturer Amount Produced CostThe Dairy 100 gallons $10 Ice Cream, Inc. 100 gallons $15 Frozen Treats 150 gallons $12 Bob & Gary’s 125 gallons $15 Which manufacturer has the absolute advantage?

Which best describes how consumers may benefit from specialization?

Who sets the price in a monopolistic competition?

What can a producer gain by specializing?

Which of these best describes an opportunity cost?

Which aspect of monopolistic competition gives consumers more choice?

The lack of competition within a monopoly means that

Which calculation helps determine which producer has the absolute advantage?

What is the difference between marginal cost and marginal revenue?

South Avenue Publishing produces self-help books. The company’s profit is the

This table shows the number of cookies several bakeries sell each day.Bakery Number of Cookies Sold Mrs. Track’s 90 Chips 100 The Bakeshop 75 Uncle John’s 125 All else being equal, which bakery has the absolute advantage?

How can producers make the most profit? Check all that apply.They can work to increase their marginal cost.They can work to decrease their marginal cost.They can raise prices to increase marginal revenue.They can lower prices to decrease marginal revenue.They can keep marginal costs below marginal revenues.They can keep marginal revenues below marginal costs.

Which best describes the availability of substitutes in a monopoly?

Which best describes how producers benefit from specialization?

When discussing comparative and absolute advantage, which best describes specialization?

Carmen wants to open her own coffee shop. She has narrowed down a list of wholesale retailers and their cost per pound of coffee beans. Whole Sale Company Cost per lb.Café con Leche$8.50Beans Brothers$7.50Colombian Co.$11.25Turkish Coffee Company$6.25Which company has the comparative advantage in cost per pound of coffee?

When an oligopoly exists, how many producers dominate the market?

In the United States, which type of industry is often considered part of an oligopoly?

This table shows the production possibility schedule for several toothpaste companies. Toothpaste company Large tubes Small tubes 1 Sparkling 100 per hour 200 per hour 2 Bright White 100 per hour 250 per hour 3 Fresh! 200 per hour 250 per hour 4 Mmmint 150 per hour 150 per hour Use the numbers to place the companies in order of greatest comparative advantage to least comparative advantage in producing small tubes of toothpaste.