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57. In perfect competition, the industry demand curve is:
a. downward sloping
b. perfectly inelastic
c. perfectly elastic

58. In perfect competition, the individual firm's demand curve is considered to be:
a. downward sloping
b. perfectly inelastic
c. perfectly elastic

59. At the original market price, set by the industry forces of demand and supply, Firm A's ATC curve is below the price for some levels of output. Firm A is:
a. breaking even
b. suffering an economic loss
c. making an economic profit

60. If the price of Firm A's product is driven down by competition (other firms entering the industry), and the resulting lowered market price is equal to Firm A's ATC's, Firm A is:
a. breaking even
b. suffering an economic loss
c. making an economic profit

61. If the price of Firm A's product is driven down again by competition, so the price is below Firm A's ATC's, Firm A is:
a. breaking even
b. suffering an economic loss
c. making an economic profit

62. If the price of Firm A's product is driven down by competition so that the price is just equal to Firm A's AVC curve, Firm A:
a. is breaking even
b. is making an economic profit
c. should shut down as it has no revenue to make any payments on its fixed costs.
d. should increase production so that the price can be driven back up and make profits.

44. If a firm has long-run average total costs falling steadily as output goes up, we call this:
a. increasing returns
b. diminishing returns
c. economies of scale

45. Which of the following industries benefit from economies of scale?
a. auto
b. steel
c. cereals
d. breweries
e. all of these
f. none of these

46. If a firm begins to have its LRATCs start to increase, it has:
a. increasing returns
b. diminishing returns
c. economies of scale
d. diseconomies of scale

47. Which of the following industries in the U.S. suffer most from diseconomies of scale?
a. auto
b. steel
c. cereals
d. breweries
e. all of these
f. none of these

Ms. Creative used to work as a salaried manager for a Kroger Store, being paid $20 per hour. She decided to start her own grocery store in her neighborhood. Her total expenses for utilities, cost of goods sold, employee wages, and rent for the store were $2,000. She works 70 hours per week in her store, 4 weeks in that month, and does not pay herself wages, but just takes home whatever is left after all other expenses are paid. Her total sales revenues for the month were $10,000.

48. How much were her accounting (explicit) costs?

49. How much were her opportunity (implicit) costs?

50. How much were her economic costs?

51. How much were her accounting profits?

52. How much were her economic profits?

53. Suppose we say that Ms. Creative just wound up "breaking even." What would her total sales revenues be if her economic costs stayed the same?

Answer :

Final answer:

If Ms. Creative's economic costs stayed the same, her Total Sales Revenues would be $10,400.

Explanation:

To calculate the Total Sales Revenues, we need to consider the economic costs and the accounting profits. Economic costs include both explicit costs (such as utilities, cost of goods sold, employee wages, and rent) and implicit costs (such as the opportunity cost of Ms. Creative's time). Accounting profits, on the other hand, only consider the explicit costs.

In this case, Ms. Creative's accounting (explicit) costs are $5,600 and her economic costs are $8,000. Her accounting profits can be calculated as Total Sales Revenues minus accounting costs, which is $10,000 - $5,600 = $2,400.

To calculate the Total Sales Revenues, we need to subtract the economic costs from the accounting profits. Therefore, the Total Sales Revenues can be calculated as $2,400 + $8,000 = $10,400.

Learn more about calculating total sales revenues here:

https://brainly.com/question/28939312

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