Econ301 Final - Assignment Essays

question

A price elasticity of zero corresponds to a demand curve that is

answer

vertical

question

The quantity consumed of a good is relatively unresponsive to changes in price whenever demand is:

answer

inelastic

question

We would expect the demand for jeans to be:

answer

more elastic than the demand for clothing.

question

The long run is defined as:

answer

the horizon in which the manager can adjust all factors of production.

question

It is profitable to hire units of labor as long as the value of marginal product:

answer

exceeds wage.

question

To minimize cost at a given output level,

answer

the ratio of the marginal product of capital over the price of capital equals the ratio of the marginal product of labor over the price of labor.

question

Suppose the long-run average cost curve is U-shaped. When LRAC is in the increasing stage, there exist:

answer

diseconomies of scale.

question

What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separately?

answer

Economies of scope

question

When a one percent change in price causes a change in quantity demanded greater than one percent, demand for the product is

answer

relatively elastic.

question

If a firm decreases the price of its product and finds its total revenue flow also decreases, then

answer

the demand for this product is price inelastic.

question

In the short run, the marginal cost of producing a good increases as output increases because

answer

the marginal product of the variable inputs decreases as the amounts used increase.

question

A strategy that results in the highest payoff to a player regardless of the opponent's action is called

answer

dominant strategy.

question

In a competitive industry with identical firms, long-run equilibrium is characterized by:

answer

MR = MC = min ATC.

question

Some legal barriers, market power, some deadweight loss are characteristics of?

answer

Monopoly

question

Differentiated goods are a feature of a:

answer

monopolistically competitive market.

question

When a player randomizes over several available actions to make her current action less predictable, then a __________________ strategy has been played.

answer

Mixed

question

Which of the following is true for a Nash equilibrium of a two-player game?

answer

Given another player's strategy stipulated in that Nash equilibrium, a player cannot improve his welfare by changing his strategy.

question

Which of the following is true under monopolistic competition in the long run?

answer

Profits are always zero.

question

A coordination problem arises whenever there:

answer

are multiple Nash equilibria.

question

The source(s) of monopoly power for a monopoly may be:

answer

patents, economies of scope,
economies of scale

question

What are the determinants of collusion in pricing games?

answer

History, the number of firms, firm size

question

Which of the following is a strategy(ies) used by firms in monopolistically competitive industries to convince consumers that their product is better than their rivals' products?

answer

Comparative advertising or niche marketing

question

In a competitive industry with identical firms, long-run equilibrium is characterized by:

answer

MR = MC, P = MC, P = AC

question

Which of the following is not a means of acquiring product and process innovations?

answer

mass production of the existing product

question

economies of scope

answer

What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separately?

question

remain constant as output is increased.

answer

Constant returns to scale exist when long-run average costs

question

Average fixed cost

answer

declines continuously as output is expanded.

question

the marginal cost of producing one output is reduced when the output of another product is increased.

answer

Cost complementarity exists in a multiproduct cost function when

question

above the minimum of average total cost.

answer

In the long run, monopolistically competitive firms charge prices

question

MR = MC.

answer

In a competitive industry with identical firms, long-run equilibrium is characterized by

question

two-part pricing and block pricing

answer

Which group of policies aims at extracting all consumer surplus?

question

an advertising campaign.

answer

Brand loyalty can be enhanced through

question

It requires that the firms can monitor their rival's prices.

answer

Which of the following statements about a price-matching strategy is incorrect?

question

Second-degree price discrimination

answer

is the practice of posting a discrete schedule of declining prices for different ranges of quantities.

question

firms cannot prevent customers from making deceptive claims or firms have different marginal costs.

answer

Price-matching strategies may fail to enhance profits when

question

peak load pricing

answer

Which of the following pricing policies does not extract the entire consumer surplus from the market?

question

ability to identify consumer types.
inability to resell the good.
differences in demand elasticities.

answer

The condition under which price discrimination is profitable is

question

limited capacity

answer

The special cost structure that is necessary for a firm to adopt a peak-load pricing policy is

question

It is always desirable to have more information than the person one is trading with.

answer

Which of the following statements is NOT correct?

question

Frequent buyer rebate programs

answer

If a product is perceived by consumers as homogeneous, which of the following strategies will work to induce brand loyalty?

question

The consumers are sincere in revealing their true natures.

answer

Which of the following is NOT a condition for a firm to engage in price discrimination?

question

Cross-subsidization

answer

Snowpeak Ski Resort offers a price for a lift ticket that is barely over its marginal cost, but the high equipment rental fee keeps generating big profits. Which pricing strategy is the management using?

question

Low-price guarantees

answer

Which of the following pricing strategies is NOT used in markets with special cost and demand structures?

question

higher the profit-maximizing markup

answer

The less elastic the demand, the

1 of 44

question

A price elasticity of zero corresponds to a demand curve that is

answer

vertical

question

The quantity consumed of a good is relatively unresponsive to changes in price whenever demand is:

answer

inelastic

question

We would expect the demand for jeans to be:

answer

more elastic than the demand for clothing.

question

The long run is defined as:

answer

the horizon in which the manager can adjust all factors of production.

question

It is profitable to hire units of labor as long as the value of marginal product:

answer

exceeds wage.

question

To minimize cost at a given output level,

answer

the ratio of the marginal product of capital over the price of capital equals the ratio of the marginal product of labor over the price of labor.

question

Suppose the long-run average cost curve is U-shaped. When LRAC is in the increasing stage, there exist:

answer

diseconomies of scale.

question

What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separately?

answer

Economies of scope

question

When a one percent change in price causes a change in quantity demanded greater than one percent, demand for the product is

answer

relatively elastic.

question

If a firm decreases the price of its product and finds its total revenue flow also decreases, then

answer

the demand for this product is price inelastic.

question

In the short run, the marginal cost of producing a good increases as output increases because

answer

the marginal product of the variable inputs decreases as the amounts used increase.

question

A strategy that results in the highest payoff to a player regardless of the opponent's action is called

answer

dominant strategy.

question

In a competitive industry with identical firms, long-run equilibrium is characterized by:

answer

MR = MC = min ATC.

question

Some legal barriers, market power, some deadweight loss are characteristics of?

answer

Monopoly

question

Differentiated goods are a feature of a:

answer

monopolistically competitive market.

question

When a player randomizes over several available actions to make her current action less predictable, then a __________________ strategy has been played.

answer

Mixed

question

Which of the following is true for a Nash equilibrium of a two-player game?

answer

Given another player's strategy stipulated in that Nash equilibrium, a player cannot improve his welfare by changing his strategy.

question

Which of the following is true under monopolistic competition in the long run?

answer

Profits are always zero.

question

A coordination problem arises whenever there:

answer

are multiple Nash equilibria.

question

The source(s) of monopoly power for a monopoly may be:

answer

patents, economies of scope,
economies of scale

question

What are the determinants of collusion in pricing games?

answer

History, the number of firms, firm size

question

Which of the following is a strategy(ies) used by firms in monopolistically competitive industries to convince consumers that their product is better than their rivals' products?

answer

Comparative advertising or niche marketing

question

In a competitive industry with identical firms, long-run equilibrium is characterized by:

answer

MR = MC, P = MC, P = AC

question

Which of the following is not a means of acquiring product and process innovations?

answer

mass production of the existing product

question

economies of scope

answer

What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separately?

question

remain constant as output is increased.

answer

Constant returns to scale exist when long-run average costs

question

Average fixed cost

answer

declines continuously as output is expanded.

question

the marginal cost of producing one output is reduced when the output of another product is increased.

answer

Cost complementarity exists in a multiproduct cost function when

question

above the minimum of average total cost.

answer

In the long run, monopolistically competitive firms charge prices

question

MR = MC.

answer

In a competitive industry with identical firms, long-run equilibrium is characterized by

question

two-part pricing and block pricing

answer

Which group of policies aims at extracting all consumer surplus?

question

an advertising campaign.

answer

Brand loyalty can be enhanced through

question

It requires that the firms can monitor their rival's prices.

answer

Which of the following statements about a price-matching strategy is incorrect?

question

Second-degree price discrimination

answer

is the practice of posting a discrete schedule of declining prices for different ranges of quantities.

question

firms cannot prevent customers from making deceptive claims or firms have different marginal costs.

answer

Price-matching strategies may fail to enhance profits when

question

peak load pricing

answer

Which of the following pricing policies does not extract the entire consumer surplus from the market?

question

ability to identify consumer types.
inability to resell the good.
differences in demand elasticities.

answer

The condition under which price discrimination is profitable is

question

limited capacity

answer

The special cost structure that is necessary for a firm to adopt a peak-load pricing policy is

question

It is always desirable to have more information than the person one is trading with.

answer

Which of the following statements is NOT correct?

question

Frequent buyer rebate programs

answer

If a product is perceived by consumers as homogeneous, which of the following strategies will work to induce brand loyalty?

question

The consumers are sincere in revealing their true natures.

answer

Which of the following is NOT a condition for a firm to engage in price discrimination?

question

Cross-subsidization

answer

question

Low-price guarantees

answer

Which of the following pricing strategies is NOT used in markets with special cost and demand structures?

question

higher the profit-maximizing markup

answer

The less elastic the demand, the

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