California State University Fullerton

Marginal Cost is defined as: a. Total cost divided by output b. The change in output due to a one unit change in an input c. Total product divided by the quantity of input d. The change in total cost due to a one unit change in output - Answer d. The change in total cost due to a one unit change in output An implicit cost is defined as: a. the opportunity cost of using a resource that is not explicitly paid out by the firm. b. the amount by which the money spent on an input to prod...

Spot Exchange - Answer an informal relationship between a buyer and seller in which neither party is obligated to adhere to specific terms for exchange contract - Answer a formal relationship between a buyer and seller that obligates the buyer and seller to exchange at terms specified in a legal document. Produce inputs internally(vertical integration) - Answer a situation where a firm produces the inputs required to make its final product. transaction costs - Answer costs a...

1. What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market? a) Industry effect b) Competitive advantage c) Business unit effect d) Competitive position e) Market profitability economics - Answer b) Competitive advantage 2. What is the perceived benefit of a product per unit consumed minus the product's monetary price? a) Value creation b) Competitive advantage c)...

Southwest Airlines begins a ''Bags Fly Free'' campaign, charging no fees for the first and second checked bags. This situation best represents - Answer producer-producer rivalry It is estimated that over 100,000 students will apply to the top 30 MBA programs in the United States this year. Using the concept of net present value and opportunity cost, when is it rational for an individual to pursue an MBA degree. multiple choice A:When the benefits of attending school are gre...

Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called - Answer cost-shifting. Economists use the term "marginal" to describe costs and benefits - Answer that are incremental and thus relevant to decision making. Which is an example of the negative impact of the Law of Diminishing Marginal Returns? - Answer Drinking so many glasses of wine that the last glass you had made you very sick. Early in US histor...

If wages are above equilibrium... - Answer excess quantity supplied surplus of labor wages eventually decrease If wages are below equilibrium... - Answer excess quantity demanded shortage of labor wages eventually increase Determinant of supply - Answer Wages of other occupations nonwage income preference of work nonwage aspect of job number of qualified suppliers With perfect information and mobility, what happens? - Answer People leave market B (decrease in supply)...

If a firm's production is Leontief and the wage rate goes up... - Answer Cost minimizing combination of capital and labor does NOT change The production function for a competitive firm is Q=K^.5L^.5. THe firm sells its output at a price of $10 and can hire labor at a wage of $5. Capital is fixed at 25 units. The profit maximizing quanitiy of labor is - Answer 25 The feasible means of converting raw inputs as steal, labor, and machinery into an output are summarized by - Answer ...

This study was the catalyst for the early 20th century reform of medical education in the United States. What was it? - Answer Flexner Report The dominant factor affecting medical care delivery and finance in the 1960s was - Answer the creation of Medicare and Medicaid. The dominant factor affecting medical care delivery and finance in the 1980s was - Answer prospective payment for hospitals. The dominant factor affecting medical care delivery and finance in the 1990s was - Ans...

Economic Profit - Answer = TR - TC(explicit & implicit) Accounting Profit - Answer = TR - TC(explicit) Implicit Costs - Answer Cost pf resource that you don't pay because you own it; the cost of the resource owned by producer Ex: value of what you give up to read the book such as studying for another class or watching TV Explicit Costs - Answer Direct out of pocket expenditure Ex: Price you paid for the book to the bookseller Marginal Benefit - Answer The change i...

Production Function - Answer Mathematical function that defines the maximum amount of output that can be produced with a given set of inputs. Q= F(K,L) - Q is the level of output - K is the quantity of capital input - L is the quantity of labor input Short-run - Answer period of time where some factors of production(inputs) are FIXED, and constrain a manager's decisions. Long-run - Answer period of time over which all factors of prodcution(inputs) are variable, and can be ad...