Econ Ch. 14,15,16 - Assignment Essays

question

Which of the following is not a characteristic of a competitive firm

answer

Free entry is limited

question

Which of the following is not a characteristic of a perfectly competitive firm

answer

Firms have difficulty entering the market

question

Which of the following statements best reflects a price taking firm

answer

If the firms were to change more than the going price it would sell none of its goods

question

Free entry means that

answer

No legal barrier prevents a firm from entering an industry

question

If a competitive firm is currently producing a level of output which marginal cost exceeds marginal revenue then

answer

A one unit decrease in output will increase the firms profit

question

Table 14-1 for a firm operating in a competitive market, the price is

answer

question

Table 14-1 for a firm operating in a competitive market, the marginal revenue is

answer

question

Table 14-4 a firm operating in a competitive market and facing the total costs listed in the table will not produce an output level beyond

answer

6 units

question

Figure 14-1 if the market price is p1, in the short run, the perfectly competitive firm will earn

answer

Positive economic profits

question

Figure 14-1 if the market price is p2, in the short run, the perfectly competitive firm will earn

answer

Zero economic profits

question

Figure 14-1 if the market price is p3, in the short run, the perfectly competitive firm will earn

answer

Negative economic profits but will try to remain open

question

Figure 14-1 if the market price is p4 in the short run the perfectly competitive firm will earn

answer

Negative profits and will shut down

question

Figure 14-9 when the market is in the long run equilibrium at point a and panel be the firm represented in panel a will

answer

Have zero economic profit

question

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where

answer

Marginal cost equals price while monopolist produces were price exceeds marginal cost

question

A perfectly competitive market

answer

Promote the general economic well-being was a monopoly market may not be in the best interest of society

question

The simplest way for a monopoly to arise is for a single firm to

answer

On a key resource

question

Encouraging firms to invest in research and development and individuals to engage in creative endeavors such as writing novels is one justification for

answer

Government created monopolies

question

A natural monopoly occurs when

answer

There are economies of scale over the relevant range of output

question

For profit maximizing monopolists

answer

P>MR=MC

question

Figure 15-3How much output will the monopolist produce

answer

question

Figure 15-3 what are measures the monopolists profit

answer

(B-G)*K

question

When we compare economic welfare in a monopoly market to a competitive market the profits earned by the monopolist represent

answer

A transfer of benefits from consumer to producer

question

Anti-trust laws have economic benefits that are with the cost if they

answer

Prevent mergers that would decrease competition and raise the cost of production

question

Splitting up a monopoly is often justified on the ground that

answer

Competition is inherently efficient

question

One problem with regular new monopolist on the basis of cost is that

answer

It does not provide an incentive for the monopolist to reduce its cost

question

Which of the following statements is not correct

answer

Both monopolistic competition and perfect competition or characterized by product differentiation

question

Two types of in perfectly competitive markets are

answer

Monopolistic competition and oligopoly

question

I am perfectly competitive firms are characterized by

answer

Price making ability

question

Monopolistically competitive industry is characterized by

answer

Many firms differentiated products and free entry

question

Each firm and a monopolistically competitive firm face is a downward sloping demand curve because

answer

The firms product is different from those offered by other firms in the market

question

For a monopolistically competitive firm at the profit maximizing quantity of output

answer

Price exceeds marginal cost

question

Monopolistically competitive firm is currently producing 10 out units of output at this level of output the firm is charging a price equal to $10 has marginal revenue equal to six dollars has marginal cost equal to six dollars and as average total cost equal to $12 from this information we can infer that

answer

The profits of the firm are negative, firms are likely to leave this market in the long run, the farm is currently maximizing its profits

question

For a profit maximizing monopolistically competitive firm price exceeds marginal cost in

answer

Both the short run and the long run

question

An important difference between the situation faced by a profit maximizing monopolistically competitive firm in the short run in the situation face by that same firm in the long run is that in the short run

answer

Price me exceed average total cost but in the long run price equals average total cost

question

Figure 16-1 in order to maximize profit, the firm will charge a price of

answer

$18

question

Figure 16-1 suppose the average total cost is $18 when Q equals 12. What is the profit maximizing price and resulting profit

answer

P= $18 profit = $0

question

Figure 16-1 suppose atc= $18 when q=$12 then the

answer

Firm is in a long run equilibrium when it produces 12 units of output

question

The relationship between advertising and product differentiation is

answer

Positive: the more differentiated product, the more firm is likely to spend on advertising

question

Critics of advertising argue that advertising

answer

Creates demand for products that people otherwise do not want or need

question

Which of the following is a commonly cited benefit of advertising

answer

Advertising can be a signal of the quality of a product

question

In general game theory is the study of

answer

How people behave in strategic situations

question

A feature that distinguishes an old couple list industry from other types of firms is the tension between

answer

Cooperation and self interest

question

In agreement between to duopoliststo function as a monopolist usually break down because

answer

Each duopolist wants a larger share of the market in order to capture more profit

question

Table 17-2 pittsville demand schedule for gas. MC= $2 per gallon. If the market for gasoline and Pittsville is perfectly competitive than the equilibrium price of gasoline is

answer

Two dollars and the equilibrium quantity is 800 gallons

question

Table 17-2 if there are exactly to sellers of gasoline and if they successfully clued them which of the following outcomes as most likely

answer

Each seller will sell 200 gallons in charge of price of six dollars

question

Which of the following statements is correct

answer

When oligopoly firms collude they're behaving as a cartel

question

In the prisoners dilemma game self interest leads

answer

To a breakdown of any agreement that the prisoners might have had made before the being questioned, to an outcome that is not particularly good for either prisoner, each prisoner to confess

question

Table 17-11 increasing the size of a store in parking lot it's a dominant strategy for

answer

Both stores

question

Table 17-11 if both stores follow dominant strategy, homes are us annual profit will be

answer

.75 Million

question

Table 17-11 The owners of the stores should agree to

answer

Refrain from increasing the store and parking lot sizes

question

Anti-trust laws in general are used to

answer

Prevent oligopolist from acting in ways that make markets less competitive

question

Economist claimed that the resale price maintenance agreement is not anti-competitive because

answer

If a supplier has market power it will be likely to exert that power throughout wholesale price rather than retail price

1 of 52

question

Which of the following is not a characteristic of a competitive firm

answer

Free entry is limited

question

Which of the following is not a characteristic of a perfectly competitive firm

answer

Firms have difficulty entering the market

question

Which of the following statements best reflects a price taking firm

answer

If the firms were to change more than the going price it would sell none of its goods

question

Free entry means that

answer

No legal barrier prevents a firm from entering an industry

question

If a competitive firm is currently producing a level of output which marginal cost exceeds marginal revenue then

answer

A one unit decrease in output will increase the firms profit

question

Table 14-1 for a firm operating in a competitive market, the price is

answer

question

Table 14-1 for a firm operating in a competitive market, the marginal revenue is

answer

question

Table 14-4 a firm operating in a competitive market and facing the total costs listed in the table will not produce an output level beyond

answer

6 units

question

Figure 14-1 if the market price is p1, in the short run, the perfectly competitive firm will earn

answer

Positive economic profits

question

Figure 14-1 if the market price is p2, in the short run, the perfectly competitive firm will earn

answer

Zero economic profits

question

Figure 14-1 if the market price is p3, in the short run, the perfectly competitive firm will earn

answer

Negative economic profits but will try to remain open

question

Figure 14-1 if the market price is p4 in the short run the perfectly competitive firm will earn

answer

Negative profits and will shut down

question

Figure 14-9 when the market is in the long run equilibrium at point a and panel be the firm represented in panel a will

answer

Have zero economic profit

question

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where

answer

Marginal cost equals price while monopolist produces were price exceeds marginal cost

question

A perfectly competitive market

answer

Promote the general economic well-being was a monopoly market may not be in the best interest of society

question

The simplest way for a monopoly to arise is for a single firm to

answer

On a key resource

question

Encouraging firms to invest in research and development and individuals to engage in creative endeavors such as writing novels is one justification for

answer

Government created monopolies

question

A natural monopoly occurs when

answer

There are economies of scale over the relevant range of output

question

For profit maximizing monopolists

answer

P>MR=MC

question

Figure 15-3How much output will the monopolist produce

answer

question

Figure 15-3 what are measures the monopolists profit

answer

(B-G)*K

question

When we compare economic welfare in a monopoly market to a competitive market the profits earned by the monopolist represent

answer

A transfer of benefits from consumer to producer

question

Anti-trust laws have economic benefits that are with the cost if they

answer

Prevent mergers that would decrease competition and raise the cost of production

question

Splitting up a monopoly is often justified on the ground that

answer

Competition is inherently efficient

question

One problem with regular new monopolist on the basis of cost is that

answer

It does not provide an incentive for the monopolist to reduce its cost

question

Which of the following statements is not correct

answer

Both monopolistic competition and perfect competition or characterized by product differentiation

question

Two types of in perfectly competitive markets are

answer

Monopolistic competition and oligopoly

question

I am perfectly competitive firms are characterized by

answer

Price making ability

question

Monopolistically competitive industry is characterized by

answer

Many firms differentiated products and free entry

question

Each firm and a monopolistically competitive firm face is a downward sloping demand curve because

answer

The firms product is different from those offered by other firms in the market

question

For a monopolistically competitive firm at the profit maximizing quantity of output

answer

Price exceeds marginal cost

question

answer

The profits of the firm are negative, firms are likely to leave this market in the long run, the farm is currently maximizing its profits

question

For a profit maximizing monopolistically competitive firm price exceeds marginal cost in

answer

Both the short run and the long run

question

answer

Price me exceed average total cost but in the long run price equals average total cost

question

Figure 16-1 in order to maximize profit, the firm will charge a price of

answer

$18

question

Figure 16-1 suppose the average total cost is $18 when Q equals 12. What is the profit maximizing price and resulting profit

answer

P= $18 profit = $0

question

Figure 16-1 suppose atc= $18 when q=$12 then the

answer

Firm is in a long run equilibrium when it produces 12 units of output

question

The relationship between advertising and product differentiation is

answer

Positive: the more differentiated product, the more firm is likely to spend on advertising

question

Critics of advertising argue that advertising

answer

Creates demand for products that people otherwise do not want or need

question

Which of the following is a commonly cited benefit of advertising

answer

Advertising can be a signal of the quality of a product

question

In general game theory is the study of

answer

How people behave in strategic situations

question

A feature that distinguishes an old couple list industry from other types of firms is the tension between

answer

Cooperation and self interest

question

In agreement between to duopoliststo function as a monopolist usually break down because

answer

Each duopolist wants a larger share of the market in order to capture more profit

question

Table 17-2 pittsville demand schedule for gas. MC= $2 per gallon. If the market for gasoline and Pittsville is perfectly competitive than the equilibrium price of gasoline is

answer

Two dollars and the equilibrium quantity is 800 gallons

question

Table 17-2 if there are exactly to sellers of gasoline and if they successfully clued them which of the following outcomes as most likely

answer

Each seller will sell 200 gallons in charge of price of six dollars

question

Which of the following statements is correct

answer

When oligopoly firms collude they're behaving as a cartel

question

In the prisoners dilemma game self interest leads

answer

To a breakdown of any agreement that the prisoners might have had made before the being questioned, to an outcome that is not particularly good for either prisoner, each prisoner to confess

question

Table 17-11 increasing the size of a store in parking lot it's a dominant strategy for

answer

Both stores

question

Table 17-11 if both stores follow dominant strategy, homes are us annual profit will be

answer

.75 Million

question

Table 17-11 The owners of the stores should agree to

answer

Refrain from increasing the store and parking lot sizes

question

Anti-trust laws in general are used to

answer

Prevent oligopolist from acting in ways that make markets less competitive

question

Economist claimed that the resale price maintenance agreement is not anti-competitive because

answer

If a supplier has market power it will be likely to exert that power throughout wholesale price rather than retail price

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