Question 1

A normal profit for a self-employed entrepreneur is I. an opportunity cost.
II)  part of the implicit rental rate of the funds invested in the business.

Accepted Answer

A)   only I
B)   only II
C)   both I and II
D)   neither I nor IIE) B) and D)
F) A) and B)

Question 2

Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best defines "economies of scope"?

Accepted Answer

A)   As output expands the cost of producing a good decreases.
B)   As output expands the cost of producing a unit of a good decreases.
C)   Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases.
D)   Costs increase as firms seek to find more consumers.E) None of the above
F) A) and D)

Question 4

Which of the following statements is CORRECT?

Accepted Answer

A)   Command systems are used only in the military.
B)   An incentive system is a method of organizing production that uses a market-like mechanism inside the firm.
C)   Selling organizations usually don't use incentive systems.
D)   A production line is a good example of how an incentive system works.E) A) and C)
F) None of the above

Question 5

A high four-firm concentration ratio implies

Accepted Answer

A)   an absence of product differentiation.
B)   a presence of product differentiation.
C)   an absence of competition.
D)   a presence of competition.E) B) and D)
F) A) and C)

Exam 10: Organizing Production

Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.

Correct Answer
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A high four-firm concentration ratio implies

Correct Answer
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Which of the following best defines "economies of scope"?

Correct Answer
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Which of the following statements is CORRECT?

Correct Answer
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A normal profit for a self-employed entrepreneur is I. an opportunity cost. II) part of the implicit rental rate of the funds invested in the business.

Correct Answer
verified

Exam 10: Organizing Production

Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.

Correct AnswerverifiedShow Answer

A high four-firm concentration ratio implies

Correct AnswerverifiedShow Answer

Which of the following best defines "economies of scope"?

Correct AnswerverifiedShow Answer

Which of the following statements is CORRECT?

Correct AnswerverifiedShow Answer

A normal profit for a self-employed entrepreneur is I. an opportunity cost. II) part of the implicit rental rate of the funds invested in the business.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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