Test#2 Study Guide

Test#2 will consist of 20 True/False questions each worth 5 points. You will have one hour and 20 minutes to take the test. 

The following topics will be covered on the second test broken down by each module:

Module 18/52

  • Explicit cost
  • Implicit cost
  • Accounting profit
  • Economic profit

Module 18 continued/53

  • Total revenue
  • Profit
  • Marginal revenue

Module 21

  • Long run
  • Short run
  • Marginal product of labor
  • Diminishing returns

Module 22

  • Total cost curve
  • Marginal cost curve
  • Average fixed cost curve

Module 23

  • Scale effects
  • Sunk cost

Module 24

  • Price-takers
  • Market share

Module 25

  • The price-taking firm's optimal output rule
  • The break-even price

Module 26

  • Fixed cost and short-run production
  • The shut-down price in the short-run