Question

In: Economics

The part of corporate profits that is paid to the shareholders of a corporation is A....

The part of corporate profits that is paid to the shareholders of a corporation is

A. retained earnings. B. business revenue. C. dividends. D. shareholders.

2. If Dell, a computer company, is determining whether to build a new plant in Texas or in New Mexico, it is making a(n) ________ decision.

A.short-run

B. immediate-run

C. variabl-input

D. long-run

3. If marginal product is negative, then

A.average profit is rising.

B.total product is rising.

C.total product is falling.

D.marginal cost is falling.

4. Marginal cost is equal to average variable cost

A.when marginal cost is at its minimum value.

B.when average variable cost is getting smaller

C.when average variable cost is getting larger.

D.when average variable cost is at its minimum value.

5. - The long-run average cost curve

A.is a curve which is tangent to each member of a set of short-run average cost curves.

B.is always a downward sloping straight line.

C.is identical to the marginal cost curve.

D.should always be horizontal.

6. Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?

A.constant returns to scale

B.diminishing marginal product

C.economies of scale

D.diseconomies of scale

Solutions

Expert Solution

1. Dividends is the part of corporate profits that is paid to shareholders of a corporation . Hence,option(C) is correct.

2. If Dell is determining whether to build a new plant in Texas or in New Mexico , it is making a long run decision. Hence,option(D) is correct.

3. If marginal product is negative , then total product is falling. Hence,option(C) is correct.

4. Marginal cost is equal to the average variable cost , when average variable cost is at it minimum value because MC cuts ATC , AVC at their respective minimum values. Hence,option(D) is correct.

5. The long run average cost curve is a curve which is tangent of a set of short run average cost curves. Hence,option(A) is correct.

6. Due to extremely large fixed costs ,an electricity generating plant probably experiencing economies of scale. Hence,option(C) is correct.

Rahul Sunny answered 2 years ago

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