Explain the behavior from the profit-seeking private firms

Question

1.Firms exist for all but which one of the following reasons?

1. To reduce transactions costs
2. To reduce the costs of buying
3. To organize teams
4. To produce things
5. To monitor shirking

2. Nonprofit firms, both private and governmental, may differ in behavior from the profit-seeking private firms because

1. government firms are more difficult to manage.
2. the demand for the products is inherently different.
3.  there is no residual claimant.
4. government managers seek more capital-intensive means of production.
5. private firms do not compete with government firms.

3. The long-run decision is to select

1. the desired short-run AC curve.
2. the desired long-run AC curve.
3. the desired long-run MC curve.
4. the plant size to go with the fixed quantity of labor.
5. the desired quantity of labor to go with fixed capital.

4. A firm exists to:

1. organize information.
2. make money.
3. make resources.
4. transform products into commodities.
5. transform inputs into marketable outputs.

5. Last spring, Coil Spring Co. reported that average fixed costs had increased, but average variable costs were unchanged. This indicates that

1. marginal costs are less than average variable cost but greater than average cost.
2. output is declining.
3. fixed costs have increased.
4. marginal costs have increased.