Economics - Practice Test | ExamPrepSheets

(A) short run abnormal profits are competed away by firms leaving the industry

(B) short run abnormal profits are competed away by firms entering the industry

(C) short run abnormal profits are competed away by the government

(D) short run abnormal profits are competed away by greater advertising

(B) short run abnormal profits are competed away by firms entering the industry

(A) Average fixed cost curve

(B) Average variable cost curve

(C) Average total cost curve

(D) Marginal cost curve

(A) Average fixed cost curve

(A) $$frac{1}{{1 - frac{{Delta C}}{{Delta S}}}}$$

(B) $$frac{1}{{1 - frac{{Delta C}}{{Delta Y}}}}$$

(C) $$frac{1}{{1 + frac{{Delta C}}{{Delta S}}}}$$

(D) $$frac{1}{{1 + frac{{Delta C}}{{Delta Y}}}}$$

(B) $$frac{1}{{1 - frac{{Delta C}}{{Delta Y}}}}$$

(A) decrease

(B) remain unchanged

(C) increase

(D) None of these

(C) increase

(A) 1.20

(B) 1.00

(C) 1.25

(D) 1.50

(C) 1.25

Economics - Study Mode