Tackle the Test: Multiple-Choice Questions

1. Question

   What is the marginal revenue of the third unit of output?

   A.

   $8

   B.

   $14

   C.

   $18

   D.

   $44

   E.

   $54

   What is the marginal revenue of the third unit of output?

2. Question

   What is the marginal cost of the first unit of output?

   A.

   $0

   B.

   $14

   C.

   $16

   D.

   $18

   E.

   $30

   What is the marginal cost of the first unit of output?

3. Question

   At what level of output is profit maximized?

   A.

   0

   B.

   1

   C.

   3

   D.

   5

   E.

   7

   At what level of output is profit maximized?

4. Question

   A firm should continue to produce in the long run if its

   A.

   total revenue is less than its total costs.

   B.

   total revenue is greater than its total explicit costs.

   C.

   accounting profit is greater than its economic profit.

   D.

   accounting profit is not negative.

   E.

   economic profit is at least zero.

   A firm should continue to produce in the long run if its

5. Question

   A firm earns a normal profit when its

   A.

   accounting profit equals 0.

   B.

   economic profit is positive.

   C.

   total revenue equals its total costs.

   D.

   accounting profit equals its economic profit.

   E.

   economic profit equals its total explicit and implicit costs.

   A firm earns a normal profit when its