MCQS: 1. A firm is said to be earning normal profit whenever: A. Accounting profit is zero. B. Economic profit is positive. C. Accounting profit is positive. D. Total revenue equals explicit and...

Extracted text: MCQS: 1. A firm is said to be earning normal profit whenever: A. Accounting profit is zero. B. Economic profit is positive. C. Accounting profit is positive. D. Total revenue equals explicit and implicit costs. 2. If a 10% increase in inputs results in a 20% increase in output, then the firm is said to exhibit: A. Diseconomies of scale B. Diminishing marginal returns to scale C. Constant returns to scale D. Economies of scale 3. Economists have traditionally attempted to avoid the trap of: A. Thinking in terms of total utility. B. Computing marginal utility C. Making interpersonal utility comparisons. D. None of the above. 4. According to the water-diamond paradox A. Water has a lower MU than Diamond. B. Water has a higher TU than Diamond. C. Prices reflect MU and not TU D. All of the above.