FINAL MICROECON - Assignment Essays

question

they are produced using scarce resources

answer

goods and services are limited in supply because

question

involves comparing the additional costs and additional benefits of an activity

answer

in economics, marginal analysis:

question

choices must be made

answer

because people's wants are unlimited but resources are scarce, _________

question

implies that there are not enough resources to satisfy people's unlimited wants

answer

the problem of scarce resources

question

individuals decide to use scarce resources in an attempt to satisfy their unlimited wants

answer

economics is best defined as the study of how

question

is used to produce goods and services

answer

a resource is something that

question

people must make choices among alternative

answer

as resources are scarce,

question

the resource used to produce the lunch were not available to satisfy other wants

answer

your best friend buys you lunch on your birthday. you think this was not a free lunch because:

question

explain and predict events

answer

the basic purpose of economic models is to

question

the economic behavior of individual decision makers

answer

microeconomics is the study of

question

the behavior of the economy as a whole

answer

macroeconomics is the study of

question

is the statement of what ought to be, no what is

answer

a normative economic statement

question

an increase in the price of gasoline will cause a reduction in the amount of gasoline purchased

answer

which of the following is an example of a positive economic statement

question

value of the best alternative not chosen

answer

opportunity cost is defined as the

question

a good must be given up to get some other good in return as resources are scarce

answer

the term opportunity cost suggests that

question

resources are scarce but wants are unlimited

answer

opportunity cost exist because

question

the individual with the lowest opportunity cost of producing a particular good should produce it

answer

the law of comparative advantage states that

question

the ability of an individual to produce a good at a lower opportunity cost than another individual

answer

comparative advantage refers to

question

natural resources

answer

the law of comparative advantage does not apply to

question

can produce the good using fewer resources than another country would require

answer

a country has an absolute advantage in the production of a good if that country

question

universally acceptable in exchange for goods and services

answer

a medium of exchange must be

question

outline the frontier (e)

answer

the figure below shows the production possibilities frontier for Good A and Good B. In the figure given below the quantity of resources and level of technology, which of the following points is unattainable?

question

equal to 100 socks

answer

the figure given below shows the production possibilities frontier for mufflers and socks.the opportunity cost of moving from point b to d is:

question

currently unattainable combination of outputs

answer

points outside the production possibilities frontier represent

question

inefficiency or unemployment

answer

points inside the production possibilities frontier represent

question

some of the economy's resources are unemployed

answer

if an economy is operating at a point inside the production possibilities frontier, then

question

somewhere on its production possibilities frontier

answer

if all resources are used efficently to produce goods and services, a nation will find itself producing

question

resources to firms and governments

answer

resources act as suppliers when they provide

question

goods and services from firms and governments

answer

households act as demanders when they demand

question

satisfaction

answer

the term utility refers to

question

are assumed to do what they think will most increase their satisfaction

answer

the statement "households maximize utility" means that households:

question

owners of sole proprietorship can lose all their personal assets if the business is sued or fails

answer

one disadvantage of a sole proprietorship as a form of business organization is that

question

all people, regardless of whether they pay for it or not

answer

a public good is one that is supplied to

question

the proportion of income paid as taxes increases as income increases

answer

a tax is said to be progressive if

question

countries

answer

international trade occurs because the opportunity cost of producing specific goods differs across

question

improved quality

answer

trade restrictions result in all of the following expect one. which of the following is the expection?

question

households act to maximize utility

answer

economists generally assume that

question

costs or benefits that fall on third parties

answer

externalities are defined as

question

a homeowner's maintenance of a beautiful lawn because it creates a benefit for neighbors

answer

an example of positive externality is

question

a negative externality

answer

when you throw trash out of your car window, you are creating

question

quantity demanded varies inversely with price, other things remaining constant

answer

the law of demand states that

question

buyers purchase less of the good because their real income decreases with an increase in price

answer

according to the law of demand, as the price of a good rises,

question

the quantity demanded of the good

answer

a movement along the demand curve for a good can be attributed to a change in

question

a movement along the demand curve D2 from point d to point c

answer

the following figure shows the demand curve for baby formula. which of the following changes is likely to happen if the price in baby formula increases?

question

a movement along the demand curve D1 from point a to point b

answer

the following figure shows the demand curve for baby formula. which of the following changes is likely to happen if the price of baby formula decrease

question

decrease in the quantity demanded of potatoes

answer

the income effect of a decrease in the price of potatoes, an inferior good is a(n)

question

increase in the price of one good leads to an increase in the demand for the other

answer

two goods are considered substitutes only if a(n)

question

decrease because the goods are complements

answer

if the price of potato chips increases, other things constant, the demand for potato chip dips will:

question

the amount of a good that produces are willing and able to sell at each possible price, other things constant

answer

which of the following best defines supply

question

a rightward shift of supply curve from S1 to S2

answer

figure 4.3 shows the supply curves for baby formula, in the figure given below, which of the following changes is likely to result from an increase in the number of firms producing baby formula?

question

shift the supply curve rightward

answer

the introduction of a new cost effective production technique is likely to

question

market forces exert no pressure for price to change

answer

when a market is in equilibrium, __________

question

a shortage

answer

suppose a market is in equilibrium. if a price ceiling is set by the government below the equilibrium price, which of the following is most likely to occur

question

quantity supplied will exceed quantity demanded

answer

suppose a price floor for a good is set above the equilibrium price. at this price, it is likely that

question

the percentage change in quantity demanded divided by the percentage change in price

answer

the price elasticity of demand is defined as

question

consumers, price

answer

the price elasticity of demand is useful because it measures the responsiveness of ____ to changes in ______

question

responsiveness

answer

the important aspect measured by elasticity is

question

greater than zero but less than one

answer

demand is inelastic only if the price elasticity of demand has an absolute value

question

independent of the units of measurement for price and quantity

answer

elasticity is always

question

elastic

answer

if the price of cococola increases from fifty cents to sixty cents per can and the quantity demanded decreases from 100 cans to fifty cans, then the demand for cococola is

question

total revenue

answer

the price elasticity of demand helps determine the effect of price changes on a firm's

question

the responsiveness of decision makers to changes in price, income, or other variables

answer

elasticity

question

horizontal straight line

answer

a perfectly elastic demand curve is

question

vertical straight line

answer

a perfectly inelastic demand curve is

question

horizontal

answer

if supply is perfectly elastic, the supply curve is

question

determine the utility derived from goods

answer

consumer preferences:

question

the sense of pleasure or satisfaction derived from consuming goods and services

answer

utility is:

question

additional satisfaction obtained from consuming one more unit of a good

answer

marginal utility is the:

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sum of all marginal utilities

answer

total utility is the:

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marginal utility falls as more of a good is consumed, other things constant

answer

the law of diminishing marginal utility states that

question

as one consumes more of a good, other things, constant, the additional satisfaction obtained from each additional unit of the good tends to fall

answer

diminishing marginal utility means that

question

answer

the following table shows the total utility and marginal utility derived from the consumption of scones. the first column of the table represents the number of scones a consumer consumes in a day. the second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scone. the total utility derived from the consumption of five scones is _______ units

question

answer

the following table shows the total utility and marginal utility derived from the consumption of scones. the first column of the table represents the number of scones a consumer consumes in a day. the second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scone. the marginal utility of the second scone is _______ units

question

the marginal utility of the last doughnut was negative

answer

i dont feel so good; i shouldnt have had that last doughnut. which of the following supports this statement

question

MUx/Px = MUy/Py

answer

suppose the marginal utility of a unit of good x=MUx, the marginal utility of a good y = MUy, Px = the price of a unit of good x, and Py =. the price of a unit of a good. a utility maximizing consumerwho purchases two goods, x and y, allocates her budget in such a way that ________--

question

a person eating more twinkies but enjoying each successive twinkie less than the previous one

answer

which of the following is an example of diminishing marginal utility

question

play less golf and spend more on movies

answer

arnold is a utility maximizing consumer. if he thinks his last dollar spent on playing golf yelds less satisfaction than the last dollar spent on movies he should:

question

consumer surplus

answer

the difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is known as

question

his consumer surplus

answer

ed is willing to pay a maximum of 200 dollars for a tweed sport coat but buys one for 180. the twenty dollars saved is

question

the difference between the maximum price consumers are willing to pay and the amount they actually pay

answer

consumer surplus

question

implicit costs

answer

a firm's opportunity cost of using resources provided by the firm's owners are called ________

question

actual monetary payments for resources purchased

answer

explicit costs are

question

total revenue minus total costs

answer

economic profit is defined as ________-

question

total revenue minus explicit costs

answer

a firm's accounting profit is equal to _________

question

the specialization and divison of labor

answer

increasing marginal returns are generally the result of

question

the positive effect of specialization in production is being offset by the negative effect of crowding of inputs

answer

if a firm is experiencing diminishing marginal returns to labor, then which of the following statements is true

question

change in output from using one more unit of labor

answer

the marginal product of labor is the

question

if marginal cost is greater than average cost, than average cost is increasing

answer

which of the following is true of the relationship between average and marginal costs

question

short run marginal cost and average cost curves are u shaped

answer

the law of diminishing marginal returns explain why

question

planning curve

answer

a firms long run average cost curve is also called its

question

the use of larger, more specialized machines

answer

economies of scale can be caused by

question

lowest rate of output at which long run average cost is at a minimum

answer

the minimum efficient scale for a firm is the

question

economies and diseconomies of scale

answer

the shape of the long-run average cost curve reflects

question

firms producing identical products

answer

which of the following is likely to be present in a perfectly competitive market

question

low prices

answer

which of the following is not necessarily a characteristic of a perfectly competitive market structure

question

perfect information

answer

which of the following characterizes a perfectly competitive market

question

foreign exchange markets

answer

which of the following best approximates a perfectly competitive market structure

question

market demand and market supply

answer

the price charged by a perfectly competitive firm is determined by

question

each firm is too small compared to the market to be able to affect price

answer

perfectly competitive firms are price takers because

question

it equals total revenue minus total cost

answer

which of the following is true economic profit

question

price equals marginal revenue at all output levels

answer

for a perfectly competitive firm,

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price equals average revenue equals marginal revenue

answer

for a perfectly competitive firms, which of the following correctly shows the relationship among market price, average revenue, and marginal revenue

question

point c

answer

the following figure shows the total cost and total revenue curves of a firm. the firm maximizes profit at an output represented by _________

question

the portion of its marginal cost curve above the minimum average variable cost

answer

a perfectly competitive firm's short run supply curve is the same as

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whose cost curves do not change as new firms enter the market

answer

a constant cost industry is one

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increases the average cost at each level of output

answer

in an increasing cost industry, the entry of new firms

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there are no close substitutes for a monopolist's product

answer

identify a distinguishing feature of monopoly

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a firm can face competition from new entrants into the market in the long run

answer

which of these is likely to be true of perfect competition but not of monopoly

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legal restrictions

answer

which of the following prevents potential competitors from entering a monopolized market

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a single firm producing a highly differentiated product and serving the entire market

answer

which of the following describes a monopolized market strucutre

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the long run average cost incurred by a firm declines as the firm expands output

answer

a natural monopoly forms when

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a downward sloping long run average cost curve

answer

a natural monopoly forms when a firm has

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the same as the market demand curve

answer

the demand curve a monopolist faces is

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more than marginal revenue at all output levels

answer

for a monopolist, average revenue is

question

marginal revenue is equal to marginal cost

answer

the figure below shows the cost and revenue curves faced by a monopolist. at the profit-maximizing output level for the monopolist,

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does not exist

answer

the supply curve for a monopolist

question

there are no barriers to entry in perfect competition

answer

which of the following factors explains the difference in long run profits earned by a monopolist and a perfectly competitive firm

question

may allow monopolies to earn profit in the long run

answer

barriers to entry

question

earn long run economic profits

answer

unlike perfectly competitive firms, monopolists:

question

price

answer

which of the following does a monopoly control that a perfectly competitive firm does not control

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denotes an industry characterized by many sellers of differentiated products

answer

the term monopolistic competition

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many firms, each selling a slightly different products

answer

monopolistically competitive industries consist of

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each firm is small relative to the market

answer

monopolistically competitive firms ignore the effect of their decisions upon other firms in the industry because

question

are price makers

answer

monopolistically competitive firms ________

question

product differentiation

answer

which of the following factors makes a monopolistically competitive firm a price maker

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produce differentiated products

answer

monopolistic competition is different from perfect competition because monopolistic competitors

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not guaranteed any level of economic profit

answer

in the short run, a monopolistically competitive firm is

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earn zero economic profit in the long run

answer

firms in monopolistic competition and perfect competition typically

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a few firms that have control over market price

answer

an oligopoly is characterized by

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a group of oligopolistic firms that engage in collusion

answer

a cartel is:

question

equal costs across firms

answer

which of the following helps make a cartel successful

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the firms' products are homogeneous

answer

collusion is easier to achieve and maintain when

question

strategic behavior among interdependent firms

answer

game theory focuses on

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the demand for a resource derived from the demand for the product produced by that resource

answer

derived demand refers to

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the price of what resources are assumed constant

answer

along the demand curve for a resource

question

horizontal sum of the demand curves for that resource in all its various uses

answer

the market demand curve for a resource is the

question

derived demand

answer

a firm's demand for a resource is a(n)

question

upward sloping

answer

the market supply curve of a resource is

question

that causes more workers to move to higher paid areas

answer

a temporary resource price differential is a price difference

question

permanent resource price differentials

answer

resource price differentials that do not trigger the reallocation of resources are known as

question

temporary resource price differentials

answer

resource price differentials that trigger the reallocation of resources to equalize payments for similar resources are known as

question

no change in the allocation of resources

answer

permanent differentials in resource prices will cause

question

the less elastic the resource supply

answer

the greater the economic rent as a proportion of total earnings, ___________

question

cannot be employed in any other line of production

answer

a resource that earns only economic rent

question

the additional output produced by one additional unit of that resource, other things constant

answer

a resource's marginal product is

question

the additional revenue generated by one additional unit of a resource, other things constant

answer

marginal revenue product is defined as

question

wage rate equals marginal revenue product

answer

in a perfectly competitive labor market, a profit maximizing firm will hire labor up to the point at which the

question

time spent producing goods and services for your own consumption

answer

nonmarket work includes

question

teaching an economics course in a college

answer

market work includes activities such as

question

practicing your golf game

answer

leisure includes activities such as

question

market work nonmarket work and leisure

answer

which of the following lists the three ways people use their time

question

is contingent upon the wage rate offered in the labor markets

answer

the quantity of labor an individual supplies to the labor market

question

always lead to an increase in the quantity of labor supplied

answer

the substitution effect of an increase in the wage rate will

question

always have a positive slope

answer

if the substitution effect is always greater than the income effect, then an individual's labor supply curve will

question

the substitution effect usually outweigh the income effect

answer

at a low wage rate,

question

the income effect outweighs the substitution effect

answer

an increase in the wage rate will lead to a reduction in the quantity of labor applied if

question

the sum of individual labor supply curves at each wage rate

answer

the market labor supply curve is

question

employees who join together to improve their working conditions

answer

a labor union is a group of

question

african americans hispanics and women

answer

because of discrimination, which of the following groups has systematically earned less than others of equal ability

question

contracts are worked out between representatives of the union and employer representatives

answer

through collective bargaining the:

1 of 160

question

they are produced using scarce resources

answer

goods and services are limited in supply because

question

involves comparing the additional costs and additional benefits of an activity

answer

in economics, marginal analysis:

question

choices must be made

answer

because people's wants are unlimited but resources are scarce, _________

question

implies that there are not enough resources to satisfy people's unlimited wants

answer

the problem of scarce resources

question

individuals decide to use scarce resources in an attempt to satisfy their unlimited wants

answer

economics is best defined as the study of how

question

is used to produce goods and services

answer

a resource is something that

question

people must make choices among alternative

answer

as resources are scarce,

question

the resource used to produce the lunch were not available to satisfy other wants

answer

your best friend buys you lunch on your birthday. you think this was not a free lunch because:

question

explain and predict events

answer

the basic purpose of economic models is to

question

the economic behavior of individual decision makers

answer

microeconomics is the study of

question

the behavior of the economy as a whole

answer

macroeconomics is the study of

question

is the statement of what ought to be, no what is

answer

a normative economic statement

question

an increase in the price of gasoline will cause a reduction in the amount of gasoline purchased

answer

which of the following is an example of a positive economic statement

question

value of the best alternative not chosen

answer

opportunity cost is defined as the

question

a good must be given up to get some other good in return as resources are scarce

answer

the term opportunity cost suggests that

question

resources are scarce but wants are unlimited

answer

opportunity cost exist because

question

the individual with the lowest opportunity cost of producing a particular good should produce it

answer

the law of comparative advantage states that

question

the ability of an individual to produce a good at a lower opportunity cost than another individual

answer

comparative advantage refers to

question

natural resources

answer

the law of comparative advantage does not apply to

question

can produce the good using fewer resources than another country would require

answer

a country has an absolute advantage in the production of a good if that country

question

universally acceptable in exchange for goods and services

answer

a medium of exchange must be

question

outline the frontier (e)

answer

question

equal to 100 socks

answer

the figure given below shows the production possibilities frontier for mufflers and socks.the opportunity cost of moving from point b to d is:

question

currently unattainable combination of outputs

answer

points outside the production possibilities frontier represent

question

inefficiency or unemployment

answer

points inside the production possibilities frontier represent

question

some of the economy's resources are unemployed

answer

if an economy is operating at a point inside the production possibilities frontier, then

question

somewhere on its production possibilities frontier

answer

if all resources are used efficently to produce goods and services, a nation will find itself producing

question

resources to firms and governments

answer

resources act as suppliers when they provide

question

goods and services from firms and governments

answer

households act as demanders when they demand

question

satisfaction

answer

the term utility refers to

question

are assumed to do what they think will most increase their satisfaction

answer

the statement "households maximize utility" means that households:

question

owners of sole proprietorship can lose all their personal assets if the business is sued or fails

answer

one disadvantage of a sole proprietorship as a form of business organization is that

question

all people, regardless of whether they pay for it or not

answer

a public good is one that is supplied to

question

the proportion of income paid as taxes increases as income increases

answer

a tax is said to be progressive if

question

countries

answer

international trade occurs because the opportunity cost of producing specific goods differs across

question

improved quality

answer

trade restrictions result in all of the following expect one. which of the following is the expection?

question

households act to maximize utility

answer

economists generally assume that

question

costs or benefits that fall on third parties

answer

externalities are defined as

question

a homeowner's maintenance of a beautiful lawn because it creates a benefit for neighbors

answer

an example of positive externality is

question

a negative externality

answer

when you throw trash out of your car window, you are creating

question

quantity demanded varies inversely with price, other things remaining constant

answer

the law of demand states that

question

buyers purchase less of the good because their real income decreases with an increase in price

answer

according to the law of demand, as the price of a good rises,

question

the quantity demanded of the good

answer

a movement along the demand curve for a good can be attributed to a change in

question

a movement along the demand curve D2 from point d to point c

answer

the following figure shows the demand curve for baby formula. which of the following changes is likely to happen if the price in baby formula increases?

question

a movement along the demand curve D1 from point a to point b

answer

the following figure shows the demand curve for baby formula. which of the following changes is likely to happen if the price of baby formula decrease

question

decrease in the quantity demanded of potatoes

answer

the income effect of a decrease in the price of potatoes, an inferior good is a(n)

question

increase in the price of one good leads to an increase in the demand for the other

answer

two goods are considered substitutes only if a(n)

question

decrease because the goods are complements

answer

if the price of potato chips increases, other things constant, the demand for potato chip dips will:

question

the amount of a good that produces are willing and able to sell at each possible price, other things constant

answer

which of the following best defines supply

question

a rightward shift of supply curve from S1 to S2

answer

figure 4.3 shows the supply curves for baby formula, in the figure given below, which of the following changes is likely to result from an increase in the number of firms producing baby formula?

question

shift the supply curve rightward

answer

the introduction of a new cost effective production technique is likely to

question

market forces exert no pressure for price to change

answer

when a market is in equilibrium, __________

question

a shortage

answer

suppose a market is in equilibrium. if a price ceiling is set by the government below the equilibrium price, which of the following is most likely to occur

question

quantity supplied will exceed quantity demanded

answer

suppose a price floor for a good is set above the equilibrium price. at this price, it is likely that

question

the percentage change in quantity demanded divided by the percentage change in price

answer

the price elasticity of demand is defined as

question

consumers, price

answer

the price elasticity of demand is useful because it measures the responsiveness of ____ to changes in ______

question

responsiveness

answer

the important aspect measured by elasticity is

question

greater than zero but less than one

answer

demand is inelastic only if the price elasticity of demand has an absolute value

question

independent of the units of measurement for price and quantity

answer

elasticity is always

question

elastic

answer

if the price of cococola increases from fifty cents to sixty cents per can and the quantity demanded decreases from 100 cans to fifty cans, then the demand for cococola is

question

total revenue

answer

the price elasticity of demand helps determine the effect of price changes on a firm's

question

the responsiveness of decision makers to changes in price, income, or other variables

answer

elasticity

question

horizontal straight line

answer

a perfectly elastic demand curve is

question

vertical straight line

answer

a perfectly inelastic demand curve is

question

horizontal

answer

if supply is perfectly elastic, the supply curve is

question

determine the utility derived from goods

answer

consumer preferences:

question

the sense of pleasure or satisfaction derived from consuming goods and services

answer

utility is:

question

additional satisfaction obtained from consuming one more unit of a good

answer

marginal utility is the:

question

sum of all marginal utilities

answer

total utility is the:

question

marginal utility falls as more of a good is consumed, other things constant

answer

the law of diminishing marginal utility states that

question

as one consumes more of a good, other things, constant, the additional satisfaction obtained from each additional unit of the good tends to fall

answer

diminishing marginal utility means that

question

answer

question

answer

the following table shows the total utility and marginal utility derived from the consumption of scones. the first column of the table represents the number of scones a consumer consumes in a day. the second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scone. the marginal utility of the second scone is _______ units

question

the marginal utility of the last doughnut was negative

answer

i dont feel so good; i shouldnt have had that last doughnut. which of the following supports this statement

question

MUx/Px = MUy/Py

answer

question

a person eating more twinkies but enjoying each successive twinkie less than the previous one

answer

which of the following is an example of diminishing marginal utility

question

play less golf and spend more on movies

answer

arnold is a utility maximizing consumer. if he thinks his last dollar spent on playing golf yelds less satisfaction than the last dollar spent on movies he should:

question

consumer surplus

answer

the difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is known as

question

his consumer surplus

answer

ed is willing to pay a maximum of 200 dollars for a tweed sport coat but buys one for 180. the twenty dollars saved is

question

the difference between the maximum price consumers are willing to pay and the amount they actually pay

answer

consumer surplus

question

implicit costs

answer

a firm's opportunity cost of using resources provided by the firm's owners are called ________

question

actual monetary payments for resources purchased

answer

explicit costs are

question

total revenue minus total costs

answer

economic profit is defined as ________-

question

total revenue minus explicit costs

answer

a firm's accounting profit is equal to _________

question

the specialization and divison of labor

answer

increasing marginal returns are generally the result of

question

the positive effect of specialization in production is being offset by the negative effect of crowding of inputs

answer

if a firm is experiencing diminishing marginal returns to labor, then which of the following statements is true

question

change in output from using one more unit of labor

answer

the marginal product of labor is the

question

if marginal cost is greater than average cost, than average cost is increasing

answer

which of the following is true of the relationship between average and marginal costs

question

short run marginal cost and average cost curves are u shaped

answer

the law of diminishing marginal returns explain why

question

planning curve

answer

a firms long run average cost curve is also called its

question

the use of larger, more specialized machines

answer

economies of scale can be caused by

question

lowest rate of output at which long run average cost is at a minimum

answer

the minimum efficient scale for a firm is the

question

economies and diseconomies of scale

answer

the shape of the long-run average cost curve reflects

question

firms producing identical products

answer

which of the following is likely to be present in a perfectly competitive market

question

low prices

answer

which of the following is not necessarily a characteristic of a perfectly competitive market structure

question

perfect information

answer

which of the following characterizes a perfectly competitive market

question

foreign exchange markets

answer

which of the following best approximates a perfectly competitive market structure

question

market demand and market supply

answer

the price charged by a perfectly competitive firm is determined by

question

each firm is too small compared to the market to be able to affect price

answer

perfectly competitive firms are price takers because

question

it equals total revenue minus total cost

answer

which of the following is true economic profit

question

price equals marginal revenue at all output levels

answer

for a perfectly competitive firm,

question

price equals average revenue equals marginal revenue

answer

for a perfectly competitive firms, which of the following correctly shows the relationship among market price, average revenue, and marginal revenue

question

point c

answer

the following figure shows the total cost and total revenue curves of a firm. the firm maximizes profit at an output represented by _________

question

the portion of its marginal cost curve above the minimum average variable cost

answer

a perfectly competitive firm's short run supply curve is the same as

question

whose cost curves do not change as new firms enter the market

answer

a constant cost industry is one

question

increases the average cost at each level of output

answer

in an increasing cost industry, the entry of new firms

question

there are no close substitutes for a monopolist's product

answer

identify a distinguishing feature of monopoly

question

a firm can face competition from new entrants into the market in the long run

answer

which of these is likely to be true of perfect competition but not of monopoly

question

legal restrictions

answer

which of the following prevents potential competitors from entering a monopolized market

question

a single firm producing a highly differentiated product and serving the entire market

answer

which of the following describes a monopolized market strucutre

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the long run average cost incurred by a firm declines as the firm expands output

answer

a natural monopoly forms when

question

a downward sloping long run average cost curve

answer

a natural monopoly forms when a firm has

question

the same as the market demand curve

answer

the demand curve a monopolist faces is

question

more than marginal revenue at all output levels

answer

for a monopolist, average revenue is

question

marginal revenue is equal to marginal cost

answer

the figure below shows the cost and revenue curves faced by a monopolist. at the profit-maximizing output level for the monopolist,

question

does not exist

answer

the supply curve for a monopolist

question

there are no barriers to entry in perfect competition

answer

which of the following factors explains the difference in long run profits earned by a monopolist and a perfectly competitive firm

question

may allow monopolies to earn profit in the long run

answer

barriers to entry

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earn long run economic profits

answer

unlike perfectly competitive firms, monopolists:

question

price

answer

which of the following does a monopoly control that a perfectly competitive firm does not control

question

denotes an industry characterized by many sellers of differentiated products

answer

the term monopolistic competition

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many firms, each selling a slightly different products

answer

monopolistically competitive industries consist of

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each firm is small relative to the market

answer

monopolistically competitive firms ignore the effect of their decisions upon other firms in the industry because

question

are price makers

answer

monopolistically competitive firms ________

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product differentiation

answer

which of the following factors makes a monopolistically competitive firm a price maker

question

produce differentiated products

answer

monopolistic competition is different from perfect competition because monopolistic competitors

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not guaranteed any level of economic profit

answer

in the short run, a monopolistically competitive firm is

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earn zero economic profit in the long run

answer

firms in monopolistic competition and perfect competition typically

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a few firms that have control over market price

answer

an oligopoly is characterized by

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a group of oligopolistic firms that engage in collusion

answer

a cartel is:

question

equal costs across firms

answer

which of the following helps make a cartel successful

question

the firms' products are homogeneous

answer

collusion is easier to achieve and maintain when

question

strategic behavior among interdependent firms

answer

game theory focuses on

question

the demand for a resource derived from the demand for the product produced by that resource

answer

derived demand refers to

question

the price of what resources are assumed constant

answer

along the demand curve for a resource

question

horizontal sum of the demand curves for that resource in all its various uses

answer

the market demand curve for a resource is the

question

derived demand

answer

a firm's demand for a resource is a(n)

question

upward sloping

answer

the market supply curve of a resource is

question

that causes more workers to move to higher paid areas

answer

a temporary resource price differential is a price difference

question

permanent resource price differentials

answer

resource price differentials that do not trigger the reallocation of resources are known as

question

temporary resource price differentials

answer

resource price differentials that trigger the reallocation of resources to equalize payments for similar resources are known as

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no change in the allocation of resources

answer

permanent differentials in resource prices will cause

question

the less elastic the resource supply

answer

the greater the economic rent as a proportion of total earnings, ___________

question

cannot be employed in any other line of production

answer

a resource that earns only economic rent

question

the additional output produced by one additional unit of that resource, other things constant

answer

a resource's marginal product is

question

the additional revenue generated by one additional unit of a resource, other things constant

answer

marginal revenue product is defined as

question

wage rate equals marginal revenue product

answer

in a perfectly competitive labor market, a profit maximizing firm will hire labor up to the point at which the

question

time spent producing goods and services for your own consumption

answer

nonmarket work includes

question

teaching an economics course in a college

answer

market work includes activities such as

question

practicing your golf game

answer

leisure includes activities such as

question

market work nonmarket work and leisure

answer

which of the following lists the three ways people use their time

question

is contingent upon the wage rate offered in the labor markets

answer

the quantity of labor an individual supplies to the labor market

question

always lead to an increase in the quantity of labor supplied

answer

the substitution effect of an increase in the wage rate will

question

always have a positive slope

answer

if the substitution effect is always greater than the income effect, then an individual's labor supply curve will

question

the substitution effect usually outweigh the income effect

answer

at a low wage rate,

question

the income effect outweighs the substitution effect

answer

an increase in the wage rate will lead to a reduction in the quantity of labor applied if

question

the sum of individual labor supply curves at each wage rate

answer

the market labor supply curve is

question

employees who join together to improve their working conditions

answer

a labor union is a group of

question

african americans hispanics and women

answer

because of discrimination, which of the following groups has systematically earned less than others of equal ability

question

contracts are worked out between representatives of the union and employer representatives

answer

through collective bargaining the:

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