Question 1 If price is between the break-even point and the shutdown point in the long run the firm will: A. operate. B. make a profit. C. stay in business. D. go out of business. Question 2 Adam Smith used a pin factory to demonstrate: A. the advantages of economies of scale. B. diseconomies of scale. C. the long-run average cost curve. D. the advantage of being established. Question 3 When output is 0 total cost equals __________ cost. A. total variable B. total fixed C. marginal D. average variable Question 4 At an output of 1 marginal cost is: A. $0. B. $200. C. $300. D. $400.
Back