Microeconomics Final #2

Taylor sells 400 candy bars at $0.50 each. Her total costs are $125. Her profits are

Refer to Figure 15-4. What area measures the monopolist's profit?

Which of the following examples illustrates an oligopoly market?

Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect

Which of the following statements is correct?

For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10. It follows that the

Refer to Table 17-6. Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimize growth related profit. They should both agree to

Refer to Table 17-6. If both stores follow a dominant strategy, HomeMax's annual profit will grow by

Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is Kelly's annual opportunity cost of the financial capital that has been invested in the business?

Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is $60, and the marginal cost of the sixth unit of output is $120. What is the average total cost when six units are produced?

Refer to Figure 14-1. If the market price falls below $3, the firm will earn

Refer to Figure 15-6. What is the monopoly price and quantity?

Suppose that for a particular business there are no implicit costs. Then

Which of the following is not a key feature of monopolistic competition?

Refer to Figure 16-3. The maximum total short-run economic profit for the monopolistically competitive firm in this figure is

A natural monopoly occurs when

Monopoly firms face

For any competitive market, the supply curve is closely related to the

When a market is monopolistically competitive, the typical firm in the market is likely to experience a

Refer to Figure 14-2. If the market price is $10, what is the firm's short-run economic profit?

Which political philosophy believes that the government should equalize the incomes of all members of society?

If revenue from a gasoline tax is used to build and maintain public roads, the gasoline tax may be justified on the basis of

Which of the following represents an example of labor-market discrimination?

Which of the following is not an example of in-kind transfers?

Many economists believe that

Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. If the minimum wage were $7.50, employment in this market would be

If the value of the marginal product of labor exceeds the wage, then hiring another worker

Tax incidence refers to

Scenario 18-3, Amari has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $18 per hour. During the summer, he drives a tour bus around the ski resort, earning $13 per hour.Refer to Scenario 18-3. During the summer months, what is Amari's opportunity cost of taking an hour off work to go enjoy some leisure time?

Refer to Figure 20-2. Which of the following is consistent with the data reported in the figure?

Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Refer to Figure 18-1. Suppose the firm sells its output for $15 per unit, and it pays each of its workers $36 per day. When output increases from 23 units to 26 units, the

A consumption tax is a tax on

Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, which of the following could be considered an efficiency wage?

Which of the following cannot be used to help explain wage differences among different groups of workers?

Economists study poverty and income inequality to answer which of the following questions?

Refer to Figure 18-6. Which of the following events would most likely explain a shift of the labor demand curve from D2 back to D1 ?

When incentives to earn income are distorted by income redistribution programs,

When a labor market experiences a shortage of labor, there is upward pressure on

One of the most difficult issues associated with trying to structure a tax policy to satisfy horizontal equity is determining