- If a rooted's final render from its 100th part of output is $50 and the final absorb from its 100th part of output is $45, then in the lacking run this rooted should: a. bar down. b. goods further than 99 parts of output. c. vary its technology. d. goods hither than 100 parts of output. e. growth its insert greatness.
- Which of the aftercited is a key personality of the covet-run competitive makeweight that distinguishes it from the lacking-run competitive equilibrium? a. Free memorandum to narrow lacking-run receipts, or exempt departure to narrow lacking-run forfeiturees. b. Average render is hither than medium absorb. c. Marginal render is senior than final absorb. d. Economic receipts are indisputable, but cannot be indirect.
- The final mode to avail maximization media that a rooted should good-tempereds until: a. final render similars expense. b. expense similars medium sum absorb. c. final absorb beseems indirectly sloped. d. final render similars final absorb. e. final render similars naught.
- If the ask-for for a issue growths in an increasing absorb toil, as the trade adjusts in the covet run: a. the rooted's per-part absorb accomplish sink. b. the trade expense accomplish render to its judicious lie. c. expense accomplish ascend. d. the rooted's per-part absorb accomplish growth.
- In the exactly competitive trade, personal rooteds exert no good-tempereds on the trade expense. Therefore, the rooted's final render incurvation is: a. indeterminate. b. an upward-sloping incurvation. c. a downward-sloping incurvation. d. the selfselfsimilar as the rooted's ask-for incurvation.
- Exhibit 8-12 Final render and absorb per part incurvations
As shown in Exhibit 8-12, the rooted accomplish bar down in the lacking-run at a expense below: a. OB. b. OA. c. OD. d. OC.
- Exhibit 8-3 Absorb per part incurvations
As shown in Exhibit 8-3, the expense at which the rooted earns naught economic avail in the lacking-run is: a. further than $2.00 per part. b. $1.00 per part. c. $2.00 per part. d. $1.50 per part. e. $4.00 per part.
- In the lacking run, if a exactly competitive rooted is supple at a expense aloft medium sum absorb, its economic avail must be: a. normal. b. negative. c. zero. d. positive.
- Which of the aftercited properly explains why sellers in a exactly competitive trade are expense followrs? a. There are manifold sellers, and so the trade system generates an makeweight expense that cannot be swingd by any one seller. Thus they entertain no choice but to follow the expense generated by the trade system. b. Individual buyers in a competitive trade entertain the capability to swing expense, and thus can set expenses and other stipulations on capabilityhither sellers. c. There are few sellers, and so they entertain the capability to follow whatever expense they insufficiency. d. Sellers in a competitive trade entertain the capability to swing expense by colluding after a while one another and using quotas to designation overall trade output and thus educate expense.
- Exhibit 8-3 Absorb per part incurvations
As shown in Exhibit 8-3, the rooted accomplish good-tempereds in the lacking run if the expense is at last similar to: a. $1.00 per part (subject-matter A). b. $1.50 per part (subject-matter B). c. $2.00 per part (subject-matter C). d. $4.00 per part (subject-matter D).
- Under twain absolute rivalry and impropriation, a rooted: a. always earns a unblemished economic avail. b. is a expense manufacturer. c. sets final absorb similar to final render. d. accomplish bar down in the lacking-run if expense sinks lacking of medium sum absorb. e. is a expense followr.
- Compared to a exactly competitive toil, a monopolist after a while the selfselfsimilar final absorb and ask-for incurvation accomplish accuse: a. a excellent expense and good-tempereds a excellent book of output. b. a excellent expense and good-tempereds a inferior book of output. c. the selfselfsimilar expense and good-tempereds the selfselfsimilar book of output. d. a inferior expense and good-tempereds a inferior book of output. e. a inferior expense and good-tempereds a excellent book of output.
- Exhibit 9-8 Avail maximizing for a monopolist
As shown in Exhibit 9-8, the monopolist's sum absorb is which of the aftercited areas? a. P1AEP5. b. P2BDP4. c. P3CDP5. d. P4DEP5. e. None of these.
- A impropriation sets a trade expense that is excellent than the final absorb of production. This indubitablety implies that a impropriation's allocation of media is: a. unfair. b. inefficient. c. excessive. d. discriminatory.
- The sight of any monopolist is to maximize: a. normal receipts. b. output. c. price. d. economic receipts. e. consumer good-tempered-fortune.
- Under impropriation, a rooted: a. is a expense followr. b. accomplish bar down in the lacking-run if expense sinks lacking of medium sum absorb. c. maximizes avail by contrast final absorb similar to final render. d. always earns a unblemished economic avail.
- Which of the aftercited is true for the monopolist? a. Marginal render is hither than the expense pregnant. b. Economic avail is affectly in the covet-run. c. Profit maximizing or forfeiture minimizing occurs when final render similars final absorb. d. All of the aloft. e. None of the aloft.
- Exhibit 9-2 Ask-for and absorb knowledge for a impropriation
Refer to Exhibit 9-2. Using the government that focuses on the final mode to maximizing receipts, the monopolist maximizes avail by choosing expense similar to: a. $10. b. $30. c. $40. d. $20. e. $0.
- If pizza used to be good-temperedsd in a exactly competitive trade, and now the pizza trade has beseem a impropriation, we can expect: a. hither pizza to be sold at a inferior expense. b. the selfselfsimilar totality of pizza to be sold at the selfselfsimilar expense. c. further pizza to be sold at a excellent expense. d. hither pizza to be sold at a excellent expense. e. further pizza to be sold at a inferior expense.
- When final render is naught for a monopolist facing a downward-sloping straight-outline ask-for incurvation, the expense ductileity of ask-for is: a. similar to 0. b. hither than 2. c. senior than 1. d. similar to 1.
- Game doctrine is an in-particular beneficial type for anatomy in the aftercited types of trades: a. monopolistic rivalry. b. absolute rivalry. c. oligopoly. d. monopoly.
- Suppose an oligopoly has a dominant rooted that sets the expense for the perfect toil. In this birth, the oligopoly has: a. a cartel. b. a kinked ask-for incurvation. c. nonexpense rivalry. d. expense example.
- Exhibit 10-5 Two-Firm Payoff Matrix
Suppose costs are same for the two rooteds in Exhibit 10-5. Each rooted assumes after a whileout ceremonious bond that if it sets the eminent expense its rival accomplish not accuse a inferior expense. Under these "tit-for-tat" stipulations, makeweight accomplish be recognized by: a. Beta Co. charging $1,000 and Alpha Co. charging $500. b. Beta Co. charging $500 and Alpha Co. charging $1,000. c. Beta Co. charging $1,000 and Alpha Co. charging $1,000. d. Beta Co. charging $500 and Alpha Co. charging $500.
- Which of the aftercited is a amusement doctrine strategy for oligopolists to elude a low-expense remainder? a. Win-win b. Second best c. Last in-first out d. Tit-for-tat
- Product differentiation makes the ask-for for a monopolistically competitive rooted's issue: a. further ductile than for a impropriation. b. exactly obdurate. c. exactly ductile. d. further inductile than for a impropriation.
- Which of the aftercited is manifestation of an undignified cartel? a. Output varys are dictated by varys in ask-for. b. Price varys are dictated by varys in ask-for. c. Members do not suit on output quotas. d. All of these.
- Exhibit 10-6 Two-Firm Payoff Matrix
Assume costs are same for the two rooteds in Exhibit 10-6. If twain rooteds were recognized to construct a cartel and suit on their expenses, makeweight would be recognized by: a. Widget Co. charging the low expense and Ajax Co. charging the low expense. b. Widget Co. charging the low expense and Ajax Co. charging the eminent expense. c. Widget Co. charging the eminent expense and Ajax Co. charging the eminent expense. d. Widget Co. charging the eminent expense and Ajax Co. charging the low expense.
- Suppose that R. J. Reynolds educates the expense of cigarettes by 10 percent. Although they entertain no requirement or bond to do so, the other cigarette rooteds flow to educate their expenses accordingly. This birth is best forcible as: a. monopolistic rivalry. b. a cartel. c. a trade after a while kinked ask-for. d. expense example.
- Excluding irrelevant rivalry, which of the aftercited is an oligopoly in the United States? a. The computer toil. b. The automobile toil. c. The steel toil. d. All of these are oligopolies.
- Which of the aftercited is true environing advertising? a. If monopolistically competitive rooteds contend through advertising, that creates infamy faithfulness, then advertising can be an good-temperedsive memorandum absorb. b. Both a. and b. aloft are rectify. c. Advertising has no contact on memorandum absorbs or trade constitution. d. Advertising may be the singly way that a new entrant can permeate a trade dominated by covet-recognized rooteds.
- Which of the aftercited most air-tight approximates the stipulations of a monopolistically competitive trade? a. The trade for jumbo aircraft, where one important private rooted contends after a while one important irrelevant rooted. b. The restaurant toil, which is characterized by rooteds supple a differentiated issue in a trade after a while low memorandum barriers. c. The trade for Grade A eggs, which is characterized by a bulky sum of rooteds supple a homogeneous issue. d. Local cable television drudge, where a licensed supplier contends after a while rooteds subscription follower drudge.
- The meaning of a cartel is to: a. act affect a impropriation. b. promote issue reversal. c. growth trade rivalry. d. decrease trade eagerness. e. diversify operations.
- Which of the aftercited statements about the yield of drudge is true? a. The yield of drudge is sturdy by the most-general wage blame. b. The drudge yield incurvation is downward sloping. c. The wage blame has no good-tempereds on the yield of drudge. d. None of these.
- The ask-for for a indubitabletyor of issueion depends on the: a. yield of other indubitabletyors of issueion. b. ask-for for the issues that it helps to good-tempereds. c. yield of the indubitabletyor. d. ask-for for other indubitabletyors of issueion.
- Exhibit 11-12 A monopsonist
In Exhibit 11-12, imply this drudge trade is unionized by a capabilityful union which forces a wage of $35 upon the toil. The rooted would respond by hiring ____ workers and paying a wage of ____. a. 70; $27 b. 60; $35 c. 40; $35 d. 60; $30 e. 40; $30
- Firms should commission added parts of a material as covet as the: a. final render issue of the material exceeds the absorb of an added part of the material. b. final issue of the material exceeds the expense of the material numerous by the part of output good-temperedsd. c. expense of the output good-temperedsd is indisputable. d. final issue of the material is hither than the expense of the material.
- If the wage blame is agricultural at a indubitable raze, the: a. sum wage absorb incurvation accomplish growth at a decreasing blame. b. sum wage absorb incurvation is absolute. c. sum wage absorb incurvation accomplish growth at an increasing blame. d. MP must be perpetual. e. sum wage absorb incurvation is a right upward sloping outline.
- The avail-maximizing employment raze for a monopsonist occurs where: a. expense = wage. b. wage = TWC. c. MRP = MFC d. wage = MFC. e. wage = MRP.
- Exhibit 11-11 Drudge wage and absorb data
LaborWageTWCMFC10$ $ 50.00$ 11 5.80 12 17.8013 102.70 14 126.00 15 46.50
In Exhibit 11-11, the wage required to commission 14 employees is similar to: a. $8.80. b. $8.10. c. $9.00. d. $5.50. e. $9.50.
- Which of the aftercited would account the ask-for for drudge to vary? a. A vary in the absorb of maintenance. b. Movements acovet the drudge ask-for incurvation. c. c and e. d. A vary in the expense of the good-tempered-tempered good-temperedsd. e. Changes in the wage blame.