Which of the following statements is false?a. TC = TFC _+TVC. b. AVC = ATC – AFC. c. AFC _=TFC/Q. d. MC equals the change in ATC divided by the change in Q. e. ATC =TC/Q.

Explicit costs are payments to a. hourly employees. b. insurance companies. c. utility companies. d. all of the above.

Implicit costs are the opportunity costs of using the resources of a. outsiders. b. owners. c. banks. d. retained earnings.

Consider Exhibit 14, which shows the graph of a perfectly competitive firm in the short run. a. If the firm’s demand curve is MR3, does the firm earn an economic profit or incur a loss? b. Which demand curve(s) indicates the firm incurs a loss? c. Which demand curve(s) indicates the firm would shut down? d.

The owner of a restaurant will hire waiters if the a. additional labor’s pay is close to the minimum wage. b. marginal product is at the maximum. c. additional work of the employees adds more to total revenue than to costs. d. waiters do not belong to a union.

A union can influence the equilibrium wage rate by a. featherbedding. b. requiring longer apprenticeships. c. favoring trade restrictions on foreign products. d. all of the above. e. none of the above.

In which of the following market structures is the firm not a price taker in the factor market? a. Oligopoly b. Monopsony c. Monopoly d. Perfect competition

The extra cost of obtaining each additional unit of a factor of production is called the marginal a. physical product. b. revenue product. c. factor cost. d. implicit cost.

To maximize profits, a monopsonist will hire the quantity of labor to the point where the marginal factor cost is equal to a. marginal physical product. b. marginal revenue product. c. total revenue product. d. any of the above. Q409: BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To

A monopsonist in equilibrium has a marginal revenue product of $10 per worker hour. Its equilibrium wage rate must be a. less than $10. b. equal to $10. c. greater than $10. d. equal to $5.