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Q: A firm that owns a wheat farm, a grain elevator, a flour mill, a commercial bakery, and a grocery store chain is
A: vertically integrated.
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Asked 6/20/2013 6:37:14 PM
Updated 6/20/2013 6:53:26 PM
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vertically integrated.
Added 6/20/2013 6:46:44 PM
Rated good by mnm
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Average fixed cost plus average variable cost equals
average total cost


The technical relationship between inputs and outputs, which is needed to understand the difference between the short run and the long run, is called
a production function

When the marginal product curve is declining because of
diminishing returns, the marginal cost curve is rising

The cost of alternatives given up that do not carry dollar costs is
considered an implicit cost


Nonprofit firms, both private and governmental, may differ in behavior from profit-seeking private firms because
there is no residual claimant

Because of diminishing marginal product in the short run, a tripling of the total product (assuming input prices are constant) requires
more than a tripling of total variable cost.

The Southern Tree Trimming Corporation reported an accounting profit of $35,000 and a normal rate of return of 15 percent on capital and enterprise of $30,000. The opportunity cost of labor is $15,500. What is the economic profit?
$15,000

A(n) _______ is organized by an entrepreneur (or group of entrepreneurs) to combine inputs of raw materials, capital, labor services, and technology in order to produce marketable outputs of goods and services.
firm
Added 6/20/2013 6:53:26 PM
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