question
Microeconomics
answer
Which of the following refers to the study of the economic behavior of individual decision- making units, such as individual consumers, resource owners, and business firms, in a free- enterprise system?
question
The modern theory of the firm postulates that the primary objective of managers is to maximize
answer
the value of the firms output
question
Which of the following areas of economic theory is the single most important element of managerial economics?
answer
Microeconomics
question
The last stage in the five-step decision process described in the text is to
answer
implement the decision
question
which theory of profit holds that a firm's profits can differ from zero only in the short run?
answer
Frictional theory
question
Business have responded to incentives for ethical behavior by doing all of the following except
answer
lobbying for the abolition of laws that require ethical behavior
question
Assume that corn and wheat are substitutes in production; that is, the same inputs can be used to produce either one of these two commodities. Also assume that the laws of supply and demand apply in both markets. If the demand for one of these commodities increases, what will likely happen in the other market?
answer
supply will decrease
question
Which of the following developments in the housing market will help increase housing prices?
answer
decline in supply
question
which of the following is a feature of perfectly competitive market?
answer
There are many buyers and sellers
question
Assuming that price is above the equilibrium price, which of the following is correct?
answer
There will be downward pressure until the price reaches the equilibrium price
question
If automobile manufacturers are producing cars faster than people want to buy them,
answer
there is an excess supply and price can be expected to decrease.
question
At the equilibrium price
answer
quantity demanded equals quantity supplied
question
The demand function for a product is defined as Q = 24 - 2P. If price is equal to 6, then the price elasticity of demand is
answer
unit elastic
question
Value of the firm is given by
answer
present value if all expected future profits
question
Which of the following has the highest net present value if the discount rate is 5%
answer
$500 NOW
question
A decline in the supply will cause a change in
answer
the level of quantity demanded
question
In which scenario will both the equilibrium price and quantity increase at the same time?
answer
When demand increases
question
If the price of a good decreases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
answer
an increase in supply
question
Which of the following is correct about imports of goods and services from abroad?
answer
Imports of goods and services decreases the price for domestic consumers
question
How is dutch auction conducted
answer
Starts with a high price. Price is reduced until one participant accepts
question
The price of a firm's product increases from $5 to $6. As a result, the quantity demanded of the product declines from 600,000 to 500,000. The arc price arc price elasticity of demand for the good is equal to
answer
-1
question
as the economy emerged from the most recent recession, household income rose by 6 percent. Over the same period, total expenditures on beef increased by 3 percent. Assuming that all other economic variables were held constant
answer
beef must be a normal good
question
If a good is inferior, then
answer
the income of elasticity of demand will be negative
question
Linear demand curve at the midpoint is
answer
unitary elastic
question
The increase in price of good A from $1 to $2 caused a decrease in quantity of good B demanded from 10 to 5. Cersei's paribus, the arc cross price elasticity between these two goods is
answer
-1.00
question
Refer to the graph of the short-rub total fist and total variables cost curves. At what level of output is marginal cost increasing
answer
8
question
Refer to the short run per unit cost curves graph. Which of the four curves represents average total cost?
answer
Curve A
question
A firm that has total fixed costs of $20,000 sells. it's output for $150 per unit and has an average variable cost of $200. If the firm's cost and revenue curves are linear, how much output must the firm produce to break even?
answer
The firm cannot beak even
question
Refer to the monopoly market graph. The monopolist can maximize profit by producing
answer
4 Units of output
question
A perfectly competitive firm is selling 300 units of output per week at a price of $100. Average total cost is $94, average variable cost is $89, and average marginal cost is $97. From this information, it is clear that the firm
answer
Can increase its profit by producing less output a week
question
Which type of market structure does not typically have a negatively sloped market curve
answer
all of the above
question
When a perfectly competitive industry is not in the long run equilibrium, all firms in the industry
answer
may earn negative or positive economic profits
question
If an input is owned and used by a firm, then its
answer
explicit cost is zero
question
Linear demand curve above the midpoint is
answer
elastic
question
The long run average cost curve is at a minimum at a level of output where
answer
the firm is experiencing constant returns to scale
question
Which of the following will not decrease the demand for a commodity?
answer
The commodity's price increases
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
