Purchase Solution

Basic MicroEconomics

Not what you're looking for?

Ask Custom Question

1) Suppose you know the average total cost and the average variable cost for a given level of output, Q. Which of the following costs can you NOT determine given this information?

a) Total cost
b) Average fixed cost
c) Fixed cost
d) Variable cost
e) You can determine all of the above costs given the information provided

2) If a firm experiences diminishing marginal returns to a factor, it must mean:

a) The factor is of poor quality
b) The firm has some fixed factors
c) The factor is wearing out
d) The firm has decreasing returns to scale

3) If the yen appreciates against the dollar, then which is NOT likely to occur:

a) US exports become relatively cheap in Japan
b) Japanese investors flock to US dollar assets
c) Japanese firms engage in incomplete exchange rate pass-through
d) Japanese exports become relatively more expensive in the US

Purchase this Solution
Solution Summary

Basic MicroEconomics inquiries are assessed for the average total costs.

Solution Preview

1. Answer is (e)
We can determine all.
Total cost = Q*Average total cost
Average fixed cost=Average total cost-Average variable cost
Fixed cost=Q*(Average total cost - ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Main differences between microeconomics and macroeconomics

    How do I create a power point presentation of 5-10 slides including , but not limited to the following . main differences between microeconomics and macroeconomics and example of each phenomenon - Keep it basic.

  • distinction between Microeconomics and Macroeconomics

    56706 Basic distinction between Microeconomics and Macroeconomics (1) What are the main differences between microeconomics and macroeconomics? Provide an example of a microeconomic and macroeconomic phenomenon.

  • Explanation of micro vs macroeconomics

    Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it.

  • Foundations of Microeconomics

    212017 Foundations of Microeconomics Microeconomics is considered to be the study of scarce resources. Here, consumers (both individuals and organizations) must make allocation decisions.

  • differences between microeconomics and macroeconomics

    These three basic trade-offs include which goods/services are to be produced, how to produce them, and who gets them.

  • Microeconomics- Marginals in Economics

    A basic example of marginals is included.

  • Problems with invisible hand

    The most basic principles of microeconomics apply not just to firms, but at the invidual level. All human beings are utility maximizers regardless of the cultural factors and other contexts that define that utility.

  • Ecconomics for the global manager

    Microeconomics is considered to be the study of scarce resources. Here, consumers (both individuals and organizations) must make allocation decisions.

  • Three trade-offs within a specific good/service

    Very basic, just give an example of a good/service and elaborate from there in a micro and macroeconomic view. Resources: Perloff, J. M. (2004). Microeconomics (3rd ed.). New York City, NY: Pearson Addison Wesley.

View More Related Solutions