econ 2020 Final -Banerjee Auburn University

question

natural monopolies

answer

Markets that exhibit economies of scale over the entire range of market output are:

question

marginal private benefit becomes equal to the marginal social benefit

answer

If the government assigns private property rights to a common resource, then the:

question

diminishing marginal returns

answer

when the marginal product of an additional worker is less than the marginal product of the previous worker what is taking place?

question

zero

answer

Consumer surplus in a market where monopolist practices perfect price discrimination.

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monopoly decreases the amount of consumers surplus

answer

Comparing single-price monopoly to perfect competition, we see that,

question

is determined by its demand curve

answer

Once a monopolist has determined its output level, it will change price

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A common resource

answer

which of the following is rival and non-excludable?

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quantity increases

answer

When supply and demand both increase

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more; higher

answer

When the price of a good decreases the consumer purchases _______ of the good and moves to a _______ indifference curve.

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they do not intersect.

answer

what statement regarding INDIVIDUALS INDIFFERENCE CURVES ON ORDINARY GOODS IS TRUE.

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average total cost

answer

In the long run, some firms will exit the market if the price of the good is less than

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zero

answer

In a perfectly competitive market, profit is

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shut down

answer

If the price falls below the Avc of production, a competitive firm will

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decrease its output to increase profits

answer

In a perfectly competitive market, if a firm finds it is producing at a level of output such that its marginal cost exceeds(decrease) its price, it will

question

P<AVC

answer

In the short-run, a perfectly competitive firm will shut down if,

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perfectly elastic

answer

In a perfectly competitive industry the demand curve faced by a single firm is

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exit;rise

answer

If firms in a perfectly competitive market are making negative economic profit, firms will begin to _____ the market, and the profit of the remaining firms will __________.

question

the principle of decreasing marginal utility

answer

The decrease in marginal utility as the quantity of the good consumed increases is called:

question

decreases and the quantity demanded decreases

answer

When the price of a good increases the marginal utility per dollar,

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less;higher

answer

A monopoly that does not practice price discrimination produces _________ output than a competitive market would and charges a __________ price than a competitive market would.

question

economies of scale

answer

A natural monopoly emerges in a market when there are

question

less; lower

answer

In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ____ of the good and moves to a _______ indifference curve.

question

monopolistically competitive firm

answer

May make economic profits, but it fails to make economic profits in the long run, because of the entry of new firms.

question

nash equilibrium

answer

Each player is playing his or her best strategy given the strategy choices of all other players.

No player has incentive to change his or her action unilaterally.

question

Monopoly and Monopolistic competition

answer

No barriers to entry

question

oligopoly from monopolistic competition

answer

Each firm has a large share of the market, making the firms independent

Firms face the temptation to collude

There are natural or legal barriers prevent the entry of new firms

question

product differentiation

answer

An example associated with monopolistic competition.

question

easy entry and exit

answer

In the long run, monopolistically competitive firms make zero economic profit

question

average fixed cost

answer

Which short-run curve is NOT U-shaped?

question

Economies of scale

answer

If a company triples its plant size and its average cost DECREASES, then the firm is experiencing:

question

above; rising

answer

If the marginal product curve is ______ the average product curve, then the average product curve is __________.

question

marginal cost is below average variable cost

answer

When the average variable cost is falling, which is true?

1 of 32

question

natural monopolies

answer

Markets that exhibit economies of scale over the entire range of market output are:

question

marginal private benefit becomes equal to the marginal social benefit

answer

If the government assigns private property rights to a common resource, then the:

question

diminishing marginal returns

answer

when the marginal product of an additional worker is less than the marginal product of the previous worker what is taking place?

question

zero

answer

Consumer surplus in a market where monopolist practices perfect price discrimination.

question

monopoly decreases the amount of consumers surplus

answer

Comparing single-price monopoly to perfect competition, we see that,

question

is determined by its demand curve

answer

Once a monopolist has determined its output level, it will change price

question

A common resource

answer

which of the following is rival and non-excludable?

question

quantity increases

answer

When supply and demand both increase

question

more; higher

answer

When the price of a good decreases the consumer purchases _______ of the good and moves to a _______ indifference curve.

question

they do not intersect.

answer

what statement regarding INDIVIDUALS INDIFFERENCE CURVES ON ORDINARY GOODS IS TRUE.

question

average total cost

answer

In the long run, some firms will exit the market if the price of the good is less than

question

zero

answer

In a perfectly competitive market, profit is

question

shut down

answer

If the price falls below the Avc of production, a competitive firm will

question

decrease its output to increase profits

answer

In a perfectly competitive market, if a firm finds it is producing at a level of output such that its marginal cost exceeds(decrease) its price, it will

question

P<AVC

answer

In the short-run, a perfectly competitive firm will shut down if,

question

perfectly elastic

answer

In a perfectly competitive industry the demand curve faced by a single firm is

question

exit;rise

answer

If firms in a perfectly competitive market are making negative economic profit, firms will begin to _____ the market, and the profit of the remaining firms will __________.

question

the principle of decreasing marginal utility

answer

The decrease in marginal utility as the quantity of the good consumed increases is called:

question

decreases and the quantity demanded decreases

answer

When the price of a good increases the marginal utility per dollar,

question

less;higher

answer

A monopoly that does not practice price discrimination produces _________ output than a competitive market would and charges a __________ price than a competitive market would.

question

economies of scale

answer

A natural monopoly emerges in a market when there are

question

less; lower

answer

In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ____ of the good and moves to a _______ indifference curve.

question

monopolistically competitive firm

answer

May make economic profits, but it fails to make economic profits in the long run, because of the entry of new firms.

question

nash equilibrium

answer

Each player is playing his or her best strategy given the strategy choices of all other players.

No player has incentive to change his or her action unilaterally.

question

Monopoly and Monopolistic competition

answer

No barriers to entry

question

oligopoly from monopolistic competition

answer

Each firm has a large share of the market, making the firms independent

Firms face the temptation to collude

There are natural or legal barriers prevent the entry of new firms

question

product differentiation

answer

An example associated with monopolistic competition.

question

easy entry and exit

answer

In the long run, monopolistically competitive firms make zero economic profit

question

average fixed cost

answer

Which short-run curve is NOT U-shaped?

question

Economies of scale

answer

If a company triples its plant size and its average cost DECREASES, then the firm is experiencing:

question

above; rising

answer

If the marginal product curve is ______ the average product curve, then the average product curve is __________.

question

marginal cost is below average variable cost

answer

When the average variable cost is falling, which is true?

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