ECON 201 WVU ACTUAL EXAM 2026 65
COMPLETE QUESTIONS AND ANSWERS
ADVANCED PREPARATION KIT TRUSTED
RESOURCE GRADED A+
⩥ . ______________ include all of the costs of production that increase
with the quantity produced. Answer: variable cost
⩥ In order to determine the average variable cost, the firm's variable
costs are divided by
_______________________.. Answer: the quantity of output
⩥ The term _____________ is used to describe the additional cost of
producing one more unit.. Answer: Marginal cost
⩥ The term __________________ describes a situation where the
quantity of output rises, but the
average cost of production falls.. Answer: economies of scale
⩥ The term "constant returns to scale" describes a situation where.
Answer: expanding all inputs does not change the average cost of
production
, ⩥ In microeconomics, the term _____________________ is
synonymous with economies of scale.. Answer: increasing returns to
scale
⩥ . According to the definition of profit, if a profit-maximizing firm will
always attempt to produce its desired
level of output at the lowest possible cost, then it will. Answer: do so
regardless of what type of competition exists in a market.
⩥ Marcella operates a small, but very successful art gallery. All but one
of the following can be classified
as a variable cost arising from the physical inputs Marcella requires to
operate her business. Which is it?. Answer: physical space for the gallery
⩥ Whatever the firm's quantity of production, _____________ must
exceed total costs if it is to earn a
profit.. Answer: total revenue
⩥ Fixed costs are important because, at least in the ___________, the
firm _______________.. Answer: short run, can't alter them
⩥ . ____________ tells a firm whether it can earn profits given the price
in the market.. Answer: average cost
COMPLETE QUESTIONS AND ANSWERS
ADVANCED PREPARATION KIT TRUSTED
RESOURCE GRADED A+
⩥ . ______________ include all of the costs of production that increase
with the quantity produced. Answer: variable cost
⩥ In order to determine the average variable cost, the firm's variable
costs are divided by
_______________________.. Answer: the quantity of output
⩥ The term _____________ is used to describe the additional cost of
producing one more unit.. Answer: Marginal cost
⩥ The term __________________ describes a situation where the
quantity of output rises, but the
average cost of production falls.. Answer: economies of scale
⩥ The term "constant returns to scale" describes a situation where.
Answer: expanding all inputs does not change the average cost of
production
, ⩥ In microeconomics, the term _____________________ is
synonymous with economies of scale.. Answer: increasing returns to
scale
⩥ . According to the definition of profit, if a profit-maximizing firm will
always attempt to produce its desired
level of output at the lowest possible cost, then it will. Answer: do so
regardless of what type of competition exists in a market.
⩥ Marcella operates a small, but very successful art gallery. All but one
of the following can be classified
as a variable cost arising from the physical inputs Marcella requires to
operate her business. Which is it?. Answer: physical space for the gallery
⩥ Whatever the firm's quantity of production, _____________ must
exceed total costs if it is to earn a
profit.. Answer: total revenue
⩥ Fixed costs are important because, at least in the ___________, the
firm _______________.. Answer: short run, can't alter them
⩥ . ____________ tells a firm whether it can earn profits given the price
in the market.. Answer: average cost
