Which cost measures the pollution cost to society?
A. Internal cost
B. External cost
C. Social cost
D. External cost and social cost
Pricing is an aspect of a firms:
A. performance.
B. structure.
C. conduct.
D. environment.
Which of the following is not a supply shifter?
A.
B. Prices of inputs.
C. Average income level.
D. Weather.
Given the following table, how many workers should be hired to maximize profits?
A. 1
B. 2
C. 3
D. 4
In a monopoly where the marginal revenue and price are, respectively, given by $10 and
$20, the price elasticity of demand is:
A. -1.
B. -2.
C. -0.5.
D. Cannot be determined based on the information in the question.
Consumer-consumer rivalry arises because of:
A. human nature.
B. the limited number of suppliers.
C. the scarcity of goods available.
D. None of the statements associated with this question are correct.
A two-way network linking five users creates how many potential network
connections?
A. 5
B. 10
C. 20
D. 30
Which of the following is NOT a means of avoiding opportunism?
A. Contracts
B. Spot exchange
C. Vertical integration
D. Long-term contracts
Which of the following statements is true?
A. The market structure of an industry frequently changes over time.
B. Most horizontal mergers are blocked by the government.
C. Most U.S. industries are perfectly competitive.
D. Most U.S. industries are monopolies.
PXX + PYY = M is called:
A. an indifference curve.
B. an opportunity set.
C. a budget set.
D. a budget line.
According to a spokesperson for cereal maker Kellogg, “€¦ for the past several
years, our individual company growth has come out of the other fellows hide.”
a. What implications does this statement have for the level of advertising in the cereal
industry?
b. Using the following hypothetical payoff matrix, explain how trigger strategies can be
used to support the collusive level of advertising in an infinitely repeated game. For
what values of the interest can collusion be sustained?
The principal-agent problem refers to the fact that the agents goals:
A. do not always coincide with those of the principal.
B. coincide with those of the principal.
C. do not overlap with those of the principal.
D. overlap with those of the principal.
An industry consists of eight firms with annual sales (in millions) of $200, $300, $900,
$600, $300, $700, $500, and $600. What is the industrys C4?
A. 0.49
B. 0.68
C. 0.66
D. 0.77