question
Which of the following is a property of oligopoly?
answer
b. Few firms
question
What is economies of scale?
answer
The long-run average cost of producing output decreases as total output increases
question
Which type of price discrimination is most likely to be used by a monopoly?
answer
C. A hair salon charging a higher price to women.
question
How does the production and prices for a market controlled by a monopoly usually compare to market with perfect competition?
answer
b. The monopolist makes less of the product and charges a higher price than with competition.
question
A business in which type of market structure does not have to lower its price to sell more?
answer
a. Perfect competition
question
What is marginal cost?
answer
c. The additional cost of producing one more unit.
question
A factory designed to have 10 workers which is currently employing 25 workers is most likely in which range?
answer
b. diminishing marginal returns
question
Firms in perfect competition in the long-run:
answer
a. always make zero profit
question
Firms in monopolistic competition in the long-run:
answer
b. usually make zero profit
question
Which of the following is a property of perfect competition?
answer
c. there are many firms in the market
question
A firm in perfect competition is losing money in the long-run. What should they do?
answer
c. shutdown so they lose no money
question
Which of the following is a property of monopolistic competition?
answer
d. both a & b; identical products, similar products
question
Which of the following is a good example of perfect competition?
answer
a. Wheat farming when there are many wheat farmers
question
When the airline industry was guaranteed a high price for tickets by the government, in the long-run this resulted in?
answer
c. airline firms engaged in quality of service competition which competed their profits away.
question
How much money you make choosing to do one thing over the next best thing is called:
answer
b. economic profit
question
Which of the following is a good example of monopoly?
answer
b. One electric company which powers a whole town.
question
What is the total revenue of a firm?
answer
b. just the money that comes in from the customers.
question
Which of the following is true?
answer
a. diminishing marginal returns makes cost rise in the short-run
question
Which of the following is a property of perfect competition?
answer
b. competitors products are identical to each other.
question
Which of the following is most likely a variable cost for a business?
answer
d. both b & c; The materials the product is made out of, Labor
question
What is economies of scale?
answer
b. the long run average cost of producing output decreases as total output increases.
question
Which of the following is a reason for the average total cost to fall in the long-run?
answer
c. Mass production technology - assembly line machines
question
A wheat farmer in America has functional control over:
answer
b. the quantity of wheat he tries to grow on his farm
question
The major antitrust trial in the U.S. in the late 1990's involved the company of?
answer
b. Microsoft
question
If a firm in the short-run is losing money and does not expect business to improve in the future, it should shut down:
answer
b. only if P<AVC (TR<TVC)
question
A firm has a price of $7.00, an ATC of $7.50, and an AVC of $6.00
answer
b. this firm is losing money but should keep operating
question
A monopolist maximizes profits by producing and selling the quantity of goods where?
answer
b. Marginal revenue is equal to marginal cost.
question
In which case below will the long-run supply curve slope be a downward sloping line?
answer
b. A decreasing cost industry
question
Which of the following is true?
answer
b. when worker productivity (as measured by MPL) rises, the cost (as measured by MC) falls.
question
The fundamental rule of profit maximization is to produce the quantity where:
answer
c. Marginal revenue is equal to marginal cost.
question
What is the average-marginal rule?
answer
d. when the marginal value is higher than the average value, the average rises.
question
An increasing cost industry is one in which as there are more firms making more of the product, the average cost of production is:
answer
a. increasing
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