Archives: Quiz
Economics Chapter 14 5 Therefore The Firm Produces 4 units The Demand
Copyright © 2016 Pearson Education, Inc. 18) La Super Rica is a taco stand in Santa Barbara, California. It is popular with the locals and even the late Julia Child found the food delicious. If La Super Rica is currently […]
Economics Chapter 14 4 The Firms Total Fixed Cost 2400 Day
Copyright © 2016 Pearson Education, Inc. 141) The figure above shows the cost, marginal revenue, and demand curves of Golden Chow, a producer of dog food. The market for dog food is monopolistic competition. In the short run, Golden Chow […]
Economics Chapter 14 3 Atopic Monopolistic Competition Long run Excess
Copyright © 2016 Pearson Education, Inc. 76) Which of the following is TRUE regarding the long run for a firm in monopolistic competition? A) P = ATC = MC = MR B) P = ATC C) ATC = MC D) […]
Economics Chapter 14 2 Competition Short run Profit Maximization
Copyright © 2016 Pearson Education, Inc. 13) Which of the following is NOT a characteristic of monopolistic competition? A) There is easy entry and exit. B) Firms may make an economic profit in the short run. C) There is product […]
Economics Chapter 14 1 Monopolistic competition is a market structure in which
Copyright © 2016 Pearson Education, Inc. Microeconomics, 12e (Parkin) Chapter 14 Monopolistic Competition 1 What Is Monopolistic Competition? 1) In monopolistic competition A) firms face barriers to entry. B) a large number of firms compete. C) firms produce and sell […]
Economics Chapter 13 9 The Statement Incorrect Firm Regulated Using Marginal
Copyright © 2016 Pearson Education, Inc. 22) What does the deadweight loss from monopoly measure? Answer: The deadweight loss from monopoly measures the loss to society of having a product produced by a monopoly rather than a perfectly competitive industry. […]
Economics Chapter 13 11 the firm does not use resources efficiently
Copyright © 2016 Pearson Education, Inc. 23) If the local cable TV company is a natural monopoly and required by regulators to set its price equal to marginal cost, there is a deadweight loss in the market and the firm […]
Economics Chapter 13 10 The Firm Produces The Efficient Quantity Output but
Copyright © 2016 Pearson Education, Inc. 8) Ron’s Hamburger Joint is the only restaurant in town. The above figure represents Ron’s cost, demand, and marginal revenue curves. Ron operates as a single-price monopoly. a) How many hamburgers does Ron produce? […]
Economics Chapter 13 8 Rate of return regulation is most similar to
Copyright © 2016 Pearson Education, Inc. 107) The firm shown in the figure above is A) a natural monopoly because its LRAC curve slopes downward where it intersects the demand curve. B) not a natural monopoly because its LRAC curve […]
Economics Chapter 13 7 What The Area Deadweight Loss When Light
Copyright © 2016 Pearson Education, Inc. 51) Natural gas is a natural monopoly. The figure above shows the market for natural gas in the city of Lucknow. When a marginal cost pricing rule regulation is imposed, the price per household […]
Economics Chapter 13 4 The unregulated, single-price monopolist illustrated
Copyright © 2016 Pearson Education, Inc. 15) A deadweight loss occurs whenever A) the total benefit of a good does not equal its total cost. B) the marginal social benefit of a good does not equal its marginal social cost. […]
Economics Chapter 13 3 Study Guide Question Price And Marginal
Copyright © 2016 Pearson Education, Inc. 99) The figure above shows a monopoly’s total revenue and total cost curves. The monopoly’s economic profit is positive if it produces between A) 0 and 5 units. B) 0 and 15 units. C) […]
Economics Chapter 13 6 Atopic Natural Monopoly Marginal Cost Pricing Rule skill
Copyright © 2016 Pearson Education, Inc. 51) In the figure above, the elasticity of demand facing the monopoly equals one when it produces ________ units of output. A) h B) j C) k D) none of the above Answer: C […]
Economics Chapter 13 5 results in a larger output than a competitive
Copyright © 2016 Pearson Education, Inc. 75) Any attempt to capture a consumer surplus, a producer surplus, or an economic profit is called A) profit-maximizing. B) rent-seeking. C) price discriminating. D) efficiency gain. Answer: B Topic: Rent Seeking Skill: Definition […]
Economics Chapter 13 1 Which of the following can create a monopoly?
Copyright © 2016 Pearson Education, Inc. Microeconomics, 12e (Parkin) Chapter 13 Monopoly 1 Monopoly and How It Arises 1) monopoly has two key features, which are ________. A) barriers to entry and no close substitutes B) franchises and barriers to […]
Economics Chapter 13 2 If marginal revenue ispositive at the number of surfboard
Copyright © 2016 Pearson Education, Inc. 31) If the price elasticity of demand is greater than 1, a monopoly’s A) total revenue increases when the firm lowers its price. B) total revenue decreases when the firm lowers its price. C) […]
Economics Chapter 12 6 Now a disease kills 50 percent of the apple orchards
Copyright © 2016 Pearson Education, Inc. Quantity (pizzas per hour) Total cost, TC (dollars per hour) 0 10 1 18 2 30 3 48 4 70 5 98 6 120 10) Giuseppe’s Pizza is a perfectly competitive firm. The firm’s […]
Economics Chapter 12 5 The above table shows the per day total cost for
Copyright © 2016 Pearson Education, Inc. 14) In the short run, an increase in demand for a good that is sold in a perfectly competitive market A) increases the number of firms in the market. B) increases the economic profits […]
Economics Chapter 12 4 marginal cost curve above the AVC curve
Copyright © 2016 Pearson Education, Inc. 116) Consider the perfectly competitive firm in the above figure. At the profit maximizing level of output, the firm is A) incurring an economic loss equal to $119.00. B) incurring an economic loss equal […]
Economics Chapter 12 9 The second figure shows the situation at Premium Standard
Copyright © 2016 Pearson Education, Inc. 14) The above diagram shows the cost curves for a perfectly competitive wheat farmer. At what price(s) does the wheat farmer make an economic profit? Make zero economic profit? Incur an economic loss? How […]
Economics Chapter 12 8 cory’s profit is maximized when his marginal
141 32) During the first half of the 2000s, the price of pork rose. After that, within a couple of years the price fell back to about the level before the initial increase. What might have led to these events? […]
Economics Chapter 12 7 Perfectly Competitive Market Increase Market
Copyright © 2016 Pearson Education, Inc. 18) In a perfectly competitive market, an increase in market demand A) raises the price in the short run and attracts new firms in the long run. B) raises the price in the short […]
Economics Chapter 12 3 Atopic Shutdown Point skill Conceptual Reflective
Copyright © 2016 Pearson Education, Inc. 53) The table above shows some of the costs for a perfectly competitive firm. If the price is $160 per unit, how many units of output will the firm produce? A) 8 B) 9 […]
Economics Chapter 12 2 Total Revenue Total Cost And Economic
Copyright © 2016 Pearson Education, Inc. 79) Which of the following is ALWAYS true for a perfectly competitive firm? A) P = MR B) P = ATC C) MR = ATC D) P = AVC Answer: A Topic: Marginal Revenue […]
Economics Chapter 12 1 there are many firms that sell identical
Copyright © 2016 Pearson Education, Inc. Microeconomics, 12e (Parkin) Chapter 12 Perfect Competition 1 What Is Perfect Competition? 1) Perfect competition arises if the ________ efficient scale of a single producer is ________ relative to the demand for the good […]
Economics Chapter 11 8 if tony produces 34 pizzas per day operating plant
140 Quantity of labor (workers) Total product (widgets per day) 0 0 1 5 2 15 3 35 4 50 5 60 6 65 Total product (widgets per day) TFC TVC TC 0 5 15 35 50 60 65 Total […]
Economics Chapter 11 7 Average Fixed Cost skill Conceptual Written And Oral
Copyright © 2016 Pearson Education, Inc. 5) For the past 15 years the American public has wanted to buy big trucks. The Big Three automakers delivered, investing billions in plants that build gas guzzlers. Now, when customers walk into showrooms, […]
Economics Chapter 11 6 This Example Increasing Marginal Return Diminishing Marginal
Copyright © 2016 Pearson Education, Inc. 15) Silvio’s Pizza is a small pizzeria. The firm’s production function is shown in the table above. Suppose that Silvio’s costs include only the cost of renting ovens, which is $100 per oven per […]
Economics Chapter 11 5 Barney Pays His Worker Decrease The Hourly
Copyright © 2016 Pearson Education, Inc. 130) In the above figure, the average total cost curve is curve A) A. B) B. C) C. D) D. Answer: B Topic: Average Total Cost Curve Skill: Graphing AACSB: Analytical thinking 131) In […]
Economics Chapter 11 4 The marginal Cost Increasing Output From Barrels Pickles
Copyright © 2016 Pearson Education, Inc. Labor (workers) Total product (books sold per hour) 0 0 1 10 2 24 3 40 4 58 5 73 6 83 7 87 8 89 9 90 10 90 66) The above table […]
Economics Chapter 11 3 costs that rise as output increases
Copyright © 2016 Pearson Education, Inc. 114) When the marginal product of labor exceeds the average product of labor A) the average product of labor is increasing. B) the average product of labor is decreasing. C) the total product curve […]
Economics Chapter 11 2 Average Product Labor And Marginal Product
Copyright © 2016 Pearson Education, Inc. 45) In the above figure, the most efficient way to produce 10 units is to hire A) 1 worker. B) 2 workers. C) 3 workers. D) 5 workers. Answer: B Topic: Total Product Curve […]
Economics Chapter 11 1 The short run is a time frame in which
Copyright © 2016 Pearson Education, Inc. Microeconomics, 12e (Parkin) Chapter 11 Output and Costs 1 Decision Time Frames 1) All the decisions made by people who operate firms have one overriding objective, which is to ________. A) make maximum attainable […]
Economics Chapter 10 6 The Industry Most Likely Monopolistic Competition topic The
Copyright © 2016 Pearson Education, Inc. 7) What is an incentive system? Answer: An incentive system is a method of organizing production that uses a market-like mechanism inside the firm. Instead of issuing commands, senior managers create compensation schemes that […]
Economics Chapter 10 5 As output expands the cost of producing a unit
Copyright © 2016 Pearson Education, Inc. 11) One of the reasons that a firm can be ________ efficient than a market is that the firm ________. A) more; does not have any economies of scale B) more; lowers transactions costs […]
Economics Chapter 10 4 Four firm Concentration Ratio
Copyright © 2016 Pearson Education, Inc. 36) There are 6 firms in a market and the market shares of the firms are 40 percent, 30 percent, 10 percent, 8 percent, 7 percent, and 5 percent. The four-firm concentration ratio is […]
Economics Chapter 10 3 Confectionery is a candy company that operates
Copyright © 2016 Pearson Education, Inc. 42) Proprietorships, partnerships, and corporations are the primary forms of A) industries. B) business organization. C) principal-agent relationships. D) command-incentive relationships. Answer: B Topic: Types of Business Organization Skill: Conceptual AACSB: Reflective thinking 43) […]
Economics Chapter 10 2 Command System Method Organizing Production
Copyright © 2016 Pearson Education, Inc. 24) Using the data in the above table, if the price of an hour of labor is $20 and the price of a unit of capital is $10, then the most economically efficient technique […]
Economics Chapter 10 1 Her Alternative Employment Options Are college Swimming
Copyright © 2016 Pearson Education, Inc. Microeconomics, 12e (Parkin) Chapter 10 Organizing Production 1 The Firm and Its Economic Problem 1) The most important goal of the firm is to A) maximize its revenues. B) maximize its sales volume. C) […]
Economics Chapter 9 9 The larger the marginal rate of substitution, the larger
Copyright © 2016 Pearson Education, Inc. 7 True or False 1) To draw your budget line between steak and lobster, all you need to know is the price of a steak and the price of a lobster. Answer: FALSE Topic: […]
Economics Chapter 9 8 The Slope The New Budget Line
Copyright © 2016 Pearson Education, Inc. 28) Can the process of consumer choice as illustrated with a budget line/indifference curves approach explain the downward sloping demand curves that consumers have for goods, such as Pepsi? Answer: Yes. Measure the quantity […]
Economics Chapter 9 7 The Income Effect From Fall The
Copyright © 2016 Pearson Education, Inc. 89) The income effect from a fall in the price of a gallon of gasoline is shown in the above figure by the movement from A) point A to point C. B) point A […]
Economics Chapter 9 6 Predicting Consumer Behavior Income Effect
Copyright © 2016 Pearson Education, Inc. 31) In the above figure, Mark’s monthly budget line for movies and plays changed, as shown by the arrow. The change was caused by A) a decrease in Mark’s income. B) an increase in […]
Economics Chapter 9 5 Samaras Best affordable Point Her Marginal Rate Substitution
Copyright © 2016 Pearson Education, Inc. 73) The indifference curve in the above figure A) illustrates two goods that are perfect substitutes. B) illustrates two goods that are perfect complements. C) violates assumptions about preferences. D) None of the above […]
Economics Chapter 9 4 How Much You Prefer Substitute Good
Copyright © 2016 Pearson Education, Inc. 16) ________ on an indifference curve that is farther from the origin ________ on an indifference curve that is closer to the origin. A) Some combinations; are preferred to some combinations B) Any combination; […]
Economics Chapter 9 3 Sam Incomed Increase The Price Pound Coffee answer
Copyright © 2016 Pearson Education, Inc. 126) In the figure above, which budget line results in the most real income in terms of compact discs? A) AD B) BD C) CD D) Real income is equal for all three budget […]
Economics Chapter 9 2 Suppose the price of chocolate chip cookies is
Copyright © 2016 Pearson Education, Inc. In 2012, the Associated Press examined the effect higher gas prices on consumption of other goods. It said that the increase in the price of gasoline has decreased the quantity of other goods, such […]
Economics Chapter 9 1 Consumption Possibilities Budget Line skill Graphing Analytical
Copyright © 2016 Pearson Education, Inc. Microeconomics, 12e (Parkin) Chapter 9 Possibilities, Preferences, and Choices 1 Consumption Possibilities 1) Goods that can be bought in any quantity desired are called A) divisible goods. B) indivisible goods. C) invisible goods. D) […]
Economics Chapter 8 6 Suppose that Arnold spends all his income
Copyright © 2016 Pearson Education, Inc. 13) Explain why total utility is maximized when the marginal utility per dollar on all goods is equal. Answer: It is easiest to prove that total utility is maximized when the marginal utility per […]
Economics Chapter 8 5 News Based Questions 1 The Cost Basics Like
Copyright © 2016 Pearson Education, Inc. Sub sandwiches Mountain Dew Quantity Marginal utility Quantity Marginal utility 0 0 0 0 1 54 1 30 2 44 2 22 3 24 3 18 4 20 4 12 5 12 5 6 […]