question
If Dr. Pepper estimated the Cross Price Elasticity of Demand for its soda + 0.25, what does this tell us about how Dr. Pepper and Mr. Pibb are related?
answer
Substitutes
question
If Dr. Pepper estimated the Cross Price Elasticity of Demand for its soda, with respect to Mr. Pibb is + 0.25, if Mr. Pibb cuts its price by 30% what does this do to the Demand for Dr. Pepper in % Change terms?
answer
Change it by -7.5%
question
If Kia automobiles estimates the Income Elasticity of Demand for its cars is - 0.6 what does this tell us about how Demand for Kias are related to changes in Income?
answer
Kias are a normal good
question
If you have calculated the Income Elasticity of Demand for Oakley sunglasses is +1.4, then this means that..
answer
It is a Normal Good - every time income rises by 1%, Quantity Demanded of Oakleys rises by 1.4%
question
Looking at the Statements below -- which 2 of them are correct in terms of our evaluation of Regression Analysis?
answer
When we are using Regressions -- we are trying to model Truth (a true relationship), but the estimations are Not Truth themselves (they are just our best guess with the available data)
More Observations --> Improves the Quality and Reliability of Estimations
More Observations --> Improves the Quality and Reliability of Estimations
question
We suggested that in order to have any confidence in a regression producing a reliable estimate it needed.....
answer
to have at least 30 observations
question
When looking at the t-stat for an estimated coefficient in a regression, a rough guide to the this being a reliable estimated coefficient is that...
answer
the absolute value of the t-stat > 2
question
Economists often like to use a Log-Linear form of regression estimation because...
answer
the estimated Coefficients of the Variables are the Variables's Elasticities
question
The Short-Run in Economics is...
answer
time frame when there are Fixed Factors of Production
question
Productivity is calculated as...
answer
Average Product
question
When Comparing Marginal Productivity Values to Average Productivity Values:
answer
When Marginal Product is Greater than Average Product
Average Product Rises
When Marginal Product is Less than Average Product
Average Product Falls
When Marginal Product is equal to Average Product
Average Product is at a Maximum
Average Product Rises
When Marginal Product is Less than Average Product
Average Product Falls
When Marginal Product is equal to Average Product
Average Product is at a Maximum
question
If a Firm's Total Costs (TC) can be given by the following equation:
TC = 8,000 + 50Q + 10Q2
What is the Firm's Average Total cost function
TC = 8,000 + 50Q + 10Q2
What is the Firm's Average Total cost function
answer
ATC = 8000/Q + 50 + 10Q
question
If a Firm's Total Costs (TC) can be given by the following equation:
TC = 8,000 + 50Q + 10Q2
What is the Firm's Marginal cost (MC) function?
TC = 8,000 + 50Q + 10Q2
What is the Firm's Marginal cost (MC) function?
answer
MC = 50 + 20Q
question
If a firm increases its production and its Average Costs rise then....
answer
It has Diseconomies of Scale
question
Mark all of the Answers below that are key implications for firms in the Competitive Market Structure:
answer
Entry and exit forces Long-Run Profits to Zero.
In the Short-Run, firms may earn Profits or Losses.
Firms are "Price Takers" (P = MR).
In the Short-Run, firms may earn Profits or Losses.
Firms are "Price Takers" (P = MR).
question
A Competive Firm's Short-Run Supply curve is..........
answer
Their Marginal Cost Curve above Minimum Average Variable Cost
question
If you are told that for a typical firm in a Perfectly Competitive Market the Market Price is $50, they sell 100 units a day, and the $ value of their Minimum Average Total Cost is $40 then which of the following statements is correct?
answer
$50 is not a Long-Run Equilibrium Price for this Market -- New Firms will enter until the Market Price = $40
question
Mark all of the answers below that are Characteristics of Monopoly.
answer
Single Seller
Barriers to Entry
Product with no close Substitutes
Barriers to Entry
Product with no close Substitutes
question
Mark all of the answers below that are sources of Monopoly power (Barriers to entry).
answer
Patents
Ownership of Key Natural Resource
Economies of Scale
Ownership of Key Natural Resource
Economies of Scale
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
