For the statements below, answer: True or false and justify your choice. 
A. If firms’ revenues just cover all its opportunity cost, then total revenue equals its explicitly cost. 
B. Total production will be maximum when marginal production is maximum
C. Average fixed cost is u-shaped
D. Total cost and total variable cost curves increase in a parallel way
E. Fuller utilization of fixed factors is one way of increasing returns to scale.

42) Suppose a firm is trying to decide whether or not to temporarily shut down to minimize total loss. If price equals average variable cost, then A) total variable cost equals total fixed cost. B) total revenue equals total variable cost, and the loss equals total fixed cost. C) total revenue equals total fixed cost, and the loss equals total variable cost. D) total cost equals total variable cost. E) total fixed cost is zero.

1. Which one of the following is the least-likely to be subject to exploitation as a common property resource?

A. The atmosphere

B. An open-ocean fishery

C. A public park

D. A parking lot

E. A river

2. What is the typical shape of a total product curve?

A. An S-shape

B. A U-shape

C. An inverted U-shape

D. A constantly increasing line

E. A constantly decreasing line

3. The open access equilibrium for a common property resource occurs at the point where...

A. Average revenue equals marginal cost

B. Total social benefits are maximized

C. Total private benefits are maximized

D. Marginal revenue equals marginal cost

E. Marginal revenue equals total costs

4. The economic optimum production level for a common property resource occurs where ...

A. Total revenue equals total costs

B. Average revenue equals marginal cost

C. Average revenue equals average cost

D. Marginal revenue equals total costs

E. Marginal revenue equals marginal cost

5. The open access equilibrium is usually ...

A. Economically efficient but ecologically unsustainable

B. Economically efficient and ecologically sustainable

C. Economically inefficient but ecologically sustainable

D. Neither economically efficient nor ecologically sustainable

E. Highly profitable for resource users

6. Which one of the following variables is most likely to increase as production effort is increased?

A. Net revenue

B. Marginal costs

C. Marginal revenue

D. Total costs

E. Average revenue

7. Which one of the following variables is most likely to decline as production effort increases?

A. Marginal cost

B. Total revenue

C. Marginal revenue

D. Total costs

E. Total production

8. The efficient price of a license fee is determined by the difference between ...

A. Marginal revenue and marginal cost

B. Average revenue and marginal cost

C. Total revenue and total cost

D. Average revenue and total cost

E. Total revenue and marginal cost

9. Which one of the following statements is false?

A. The economically optimal level of production is less than the open-access equilibrium level of production

B. The economically optimal level of production occurs at the maximum sustainable yield

C. Charging a license fee for access to a common resource will reduce the production level below the open-access equilibrium

D. The