An Industry Battle Between Incompatible Product Formats Can Occur if Competing Firms Selling Sets of
1. Marginal revenue for a monopolist is
a. Downward sloping and e'er less than price
b. Downward sloping and ever equal to price
c. Down sloping and e'er greater than price
d.Horizontal, just similar for the perfectly competitive firm
two. In the graph, the monopoly is
a. Making economic profits
b. Making either profits or losses. We cannot tell without more information
c. Breaking even
d. Making accounting profits, but economical losses
3. The marginal revenue curve for a perfectly competitive firm is ____________ while the marginal revenue curve of the monopolist is ____________.
a. Horizontal, downwardly sloping
b. Horizontal, upward sloping
c. Down sloping, horizontal
d. Downward sloping, upward sloping
4. A monopoly is socially inefficient because it
a. Makes consumer buy goods they really don't need
b. Makes profits
c. Makes profits even in the long run
d. Charges a price greater than marginal cost
5. A business firm tin be the sole supplier of a good and still not exist considered a monopoly if
a. The firm is making normal profits
b. The good produced is not important to the economy
c. The business firm is not large
d. At that place are very close substitutes for the practiced
6. The demand curve faced by the monopolist
a. Has greater price elasticity of demand and close substitutes for the monopoly production are adult
b. Is perfectly inelastic
c. Has smaller cost elasticity of demand every bit close substitutes for the monopoly product are developed
d. Is perfectly elastic
seven. In order to price discriminate, a firm must
a. Be certain the price-marginal toll ratio is the same for all its submarkets
b. Accept permission from the government
c. Face a downward-sloping demand curve
d. Set cost equal to marginal price
eight. As opposed to other types of monopoly, anatural monopoly typically owes its monopoly position to
a. Economies of calibration
b. Tariffs
c. Ownership of a resource without shut substitutes
d. Patents
9. In a monopoly market place structure, the firm (the monopolist)
a. Gouges the consumer
b.Gets unconscionably rich
c. Is the whole industry
d. Sells faulty products
x. In the graph to the right, the profit-maximizing price for a monopoly is
a. P3
b. P4
c. P2
d. P1
11. The fact that a monopolistically competitive firm does not produce the minimum ATC can be viewed as the cost of generating
a. Economies of scale
b. Homogeneous products
c. Product differentiation and diversity
d. All of the above
12. A firm that produces aninformation product volition
a. Earn negative or zippo economical profits in the long run
b. Earn positive economical profits in the long run
c. Earn zero economic profits in the long run
d. Earn positive or zero economic profits in the long run
xiii. The downwards slop of the demand curve of a monopolistically competitive business firm implies that the firm has
a. No monopoly power over cost, and therefore advertising will non increase profits
b. Some monopoly ability over price, and therefore advertising may increase profits
c. Increasing returns to scale
d. Abiding returns to scale
fourteen. The greater the monopolistically competitive house'south success at product differentiation the lower is (are) the firm'southward
a. Price elasticity of need
b. Opportunities for collusive behavior
c. Options for altering product price
d. None of the to a higher place are correct
fifteen. When the qualities of a good are relatively easy to assess in advance of their buy, the good I known as
a. An information product
b. An experience good
c. A search expert
d. An interactive skilful
16.Which of the post-obit graphs represents the toll curves for an advisory product?
a. A
b. B
c. C
17. The monopolistically competitive business firm in the diagram is
a.Earning positive economic profits
b. Earning positive accounting profits but negative economic profits
c. Earning negative economic profits
d. Earning economic profits equal to zero
eighteen. In the long run, monopolistically competitive firms,
a. Make cypher economical profits
b. Make positive economic profits
c. Can make either positive economic profits or zero economical profits, and always make positive accounting profits
d. Brand zero bookkeeping profits
nineteen. In comparing the long-run equilibrium of perfect contest and monopolistic competition, which of the following istrue?
a. Perfect contest: P = MC – minimum of AVC and naught economic profits; Monopolistic competition: P > MC = ATC and positive economic profits
b. Perfect contest: P = MC – minimum of ATC and zero economic profits; Monopolistic competition: P = MC > minimum of ATC and cipher economic profits
c. Perfect competition: P = MC – minimum of ATC and zero economic profits; Monopolistic contest: P > MC, P > minimum ATC and goose egg economic profits
d. Perfect competition: P = MC – minimum of ATC and zero economic profits; Monopolistic competition: P = minimum of ATC > MC and zero economical profits
20. When a firm produces an information product the initial or fixed costs are (low/loftier).
21. Consequently the boilerplate fixed cost and average full cost (increase/subtract) as the volume of output increases.
22. Since virtually of the costs are the initial fixed costs of development, once the product is developed, the (total/average/marginal) cost of producing more than units of the production are typically low and (decreasing/increasing/constant).
23. In this case, so, the low and constant marginal price is (to a higher place/below) the average price.
24. If the firm set the cost, or average revenue, of the product equal to the marginal cost, the firm would have economic (gains/losses) since the marginal cost is (greater than/les than) the average cost.
25. Which of the market structures has unrestricted entry and leave, many sellers of the product and some ability to set up the price?
a. Monopolistic competition
b. Oligopoly
c. Monopoly
d. Perfect competition
26. A situation where a consumer's willingness to employ an item depends on how many others use it is
a. A positive-sum game
b. Price leadership
c. A vertical merger
d. A network effect
27. Oligopolies may emerge in an industry because of
a. Barriers to entry
b. Economies of scale
c. Mergers
d. All of the above
28. Co-ordinate to game theory, the strategic interaction between two or more than individuals can take the form of
a. A cipher-sum game
b. A non-cooperative game
c. A cooperative game
d. All of the above are right
29. What is a cartel?
a. It is an clan of producers in an industry that hold to set common prices to prevent competition
b. It is an association of producers in an industry that agree to fix common prices and output quotas to promote competition
c. It is an association of producers in an industry that hold to set common prices to promote competition
d. It is an clan of producers in an industry that agree to set mutual prices and output quotas to prevent competition
30. A game in which the players volition non negotiate is a
a. Zero-sum game
b. Cooperative game
c. Non-cooperative game
d. Negative-sum game
31. How can an oligopoly form when there are network effects and market feedback?
a. A few firms may be able to capture most of the growth in demand that is caused by positive market feedback
b. Firms will successfully drive out their competitors when they choice a market leader and match any toll changes made by the leader
c. Firms volition engage in limit pricing
d. Firms will invest in backlog productive capacity to signal other firms that they can outlast their competitors in a price state of war.
32. Nether the Capper-Volstead Act of 1992, U.South. farmers are permitted to course cooperative organizations aimed at influencing aggregate production and market prices of their crops. Today, many of the nation's 10,000 murphy farmers are aiming to expand the United Irish potato Growers of America (UPGA), an organization defended to restricting murphy production, pushing upward potato prices, and boosting profits. The UPGA includes farmers from California, Colorado, Idaho, Oregon, Texas, Washington, and Wisconsin. Members sign an agreement to restrict their production of potatoes. The UPGA uses satellite photography and global-positioning-system technology to enforce the understanding and fines members who are caught cheating. Based on the discussion of the factors favoring the organization and enforcement of a cartel, what aspects of United states of america potato farming make the ultimate success of the UPGA's potato cartel more than or less probable?
a. The number of firms makes it ______ likely the UPGA'due south cartel will be successful.
b. Beingness that the production is potatoes makes it ______ likely the UPGA's dare will e successful.
c. The fact that potatoes are publically traded in large highly organized markets makes information technology ______ likely the UPGA's dare will be successful.
d. If the demand for potatoes of a sudden get more than volatile, that would brand it ______ likely the UPGA'due south cartel will exist successful.
33. An industry battle between incompatible product formats can occur if competing firms selling sets of ________________________ products neglect to take into business relationship ________________________ furnishings.
34. Consider the following payoff matrix. Firm 1 and Firm 2 are seeking to choose between Format A and Format B for their products. Which of the following statements best describes their turn a profit-maximization?
a.Since there are no network effects, Firm 1 would maximize its profit by producing format B and Firm 2 would maximize its turn a profit by producing format A.
b. Since there are network furnishings, House 1 would maximize its turn a profit past producing format B and Firm 2 would maximize its profit by producing format A.
c. Since there are no network furnishings, the firms would maximize profits if they both produced format A.
d. Since there are network effects, the firms would maximize profits if they both produced format A.
35. The legal system typically defines monopoly by looking at a firm'south
a. Sales revenues
b. Market share
c. Adjusted taxable income
d. Advert budget
36. The first legislation enacted to control the cosmos and growth of monopoly in the U.Southward. was
a. The Sherman Antitrust Act
b. The Federal Trade Commission Act
c. The Robinson-Patman Human action
d. The Clayton Human activity
37. Which of the following are exempt from antitrust regulation?
a. The communications manufacture
b. The steel manufacture
c. The automobile industry
d. Professional person baseball game
38. The theory that regulators frequently end upwardly adopting the views of the regulated is known as
a. The capture hypothesis
b. The share-the-gains, share-the-pains hypothesis
c. The deregulation hypothesis
d. None of the above
39. Market solutions to the lemons problem entail
a. Industry standards
b. Product certification
c. Product warranties
d. All of the above
40. Average cost pricing by regulated monopolies
a. Forces the firm to operate at a loss
b. Permits long-run monopoly profits
c. Allows the house to brand a "off-white" charge per unit of return
d. None of the above
41. Which of the post-obit isnot an effect in enforcing antitrust laws?
a. Marginal cost pricing
b. International contest
c. Defining the relevant market
d. The laws are vague
42. A natural monopoly exists when
a. A firm is able to make long-run profits without inducing entry past other firms
b. There is pure monopoly and the government grants an exclusive license to the firm
c. A business firm's demand curve is downward sloping
d. A business firm's long-run average cost curve is sloping down when it intersects the market place demand bend
43. The federal regulatory agency that has jurisdiction over labor markets is
a. The Federal Trade Committee
b. The Occupational Safety and Health Assistants
c. The Equal Employment Opportunity Commission
d. The Securities and Exchange Committee
44. The chief purpose of economic regulation is
a. To command the price that regulated enterprises are allowed to accuse
b. To command the quality of serice provided past a monopolist
c. To force a business firm to produce at the point where marginal price equals marginal revenue
d. To focus on the affect of production on the surroundings and social club, the working conditions nether which good and services are produced, and sometimes the physical attributes of goods
45.The table gives some data from the production part of a business firm that is a perfect competitor in both the product and labor markets. The wage rate in the industry is $300 and the price of the proficient produced is $15. The profit-maximizing quantity of labor to rent is
a. 102 workers
b. 103 workers
c. 104 workers
d. 105 workers
46. Which of the following isnon a key factor that influences the elasticity of need for labor?
a. How like shooting fish in a barrel it is to substitute other inputs for labor in the product procedure
b. The proportion of total costs that is accounted for by labor
c. The availability of labor in the market
d. The toll elasticity of demand for the final product
e. The length of fourth dimension the house has to accommodate to a modify in the labor's price
47. In the short run, labor outsourcing by U.S. firms tends to
a. Increase U.South. wages but reduce U.S. employment
b. Increment both U.South. wages and employment
c. Reduce both U.S. wages and employment
d. Reduce U.S. wages but increase U.S. employment
48. For affirm facing a perfectly elastic supply of labor, the employment of workers will continue until
a. MRP = wage rate
b. Marginal factor price = wage rate
c. MPP = MR
d. All of the above
49. The price elasticity of demand for an input
a. Is larger the longer the time period being considered
b. Is lower the larger the proportion of total costs accounted for past that input
c. Is lower as more substitutes for the input are available
d. Is lower the greater the price elasticity of demand for the final product
50.How many workers volition this firm employ if the weekly wage is $300?
a. 0
b. 27
c. 28
d. 29
51. The net short-run effects of outsourcing on U.S. wages and employment are
a. E'er negative
b. Mixed
c. Always positive
d. Limited to blue neckband workers
52. If the MRP of labor is less than the age rate, the perfectly competitive house volition
a. Maintain the electric current level of employment
b. Increase employment
c. Decrease employment
d. Raise the wage rate
53. Other things equal, an increase in the productivity of labor will pb to
a. Fewer workers being hired
b. Lower wages
c. Higher wages
d. No modify in the number of workers existence hired
54. The monopolist hires fewer workers than the perfect competitor considering
a. A product price must rise for the monopolist to sell more than
b. The MRP curve for the monopolist is above the MRP curve of the perfect competitor
c. The monopolist produces less than the perfect competitor and needs less labor, other things being equal.
d. None of the higher up
55. Money payments fabricated past governments to individuals for which no services or goods are concurrently rendered are known equally
a. Black market payments
b. Demerit payments
c. Transfer payments
d. Merit payments
56. Subsidizing medical services through Medicare
a. Makes medical services available to a big percentage of the population, who otherwise could not afford them
b. Drives a wedge between the cost received by providers and the price perceived past consumers
c. Is s relatively low percent of U.S. Gross domestic product compared to other nations
d. All of the above are true
due east. Just A and B are true
57. A price or benefit of an economic activity that has an bear upon on an individual's well-beingness, fifty-fifty though the individual was non directly involved in the activity, is known equally a(n)
a. Public good
b. Externality
c. Complimentary-rider
d. Capital loss
58.Based on the accompanying graph which depicts the market for CAT scans, in the free market, the price of a Cat scan would be __________. In the free market the quantity of Cat scans consumed would exist _________. The government subsidizes the Cat scans and pays hospitals $450. When the subsidy is paid there volition exist _________ CAT scans produced. Consumers are willing to pay _________ out of the pocket expenses for a CAT scan. The amount of the subsidy is _________. Subsidizing CAT scans results in _________ CAT scans being produced.
59. A good that has been deemed socially desirable through the political process is known as
a. A merit proficient
b. A demerit good
c. A positive externality
d. A free-rider
60. The study of collective conclusion making, or the process through which voters, politicians and other interested parties influence nonmarket choices is known as
a. A private pick theory
b. Antitrust legislation
c. Public pick theory
d. The exclusion principle
61. Market failure occurs because
a. The market place system does not make individuals responsible for the social costs/benefits of their deportment
b. The market system forces individuals to consider the social consequences of their actions
c. The market organisation forces individuals to consider the social and private consequences of their actions
d. The marketplace system does not make individuals responsible for the individual costs/benefits of their actions
62. A truthful public good must be provided by the government. Which of the following goods is a true public good?
a. Highways where tolls are nerveless
b. Postal service
c. Taxation drove
d. Overflowing control
63. Other than correcting externalities, other economical functions of government include
a. Deciding which states may or may not impose income taxes, charge fees and enforce contracts
b. Providing a legal arrangement, allocating public goods, promoting contest, and stabilizing the economy
c. Deciding what to produce, how to produce it and for whom to produce for all the sectors of the economy
d. Income redistribution and the regulation and provision of merit and demerit goods
64. Buffalo almost became extinct, but cattle never accept been threatened with extinction because
a. Buffalo were wild and cattle were tame
b. Cattle provide economically valuable products and buffalo did non
c. Buffalo are bigger than cattle and thus provide more than meat and hibernate
d. Buffalo were mutual property and cattle were private property
65. Economically speaking, the optimal quantity of pollution is
a. The output where the marginal do good from cleaning up pollution equals the marginal cost of cleaning upwards pollution
b. Zero
c. The output where the total benefit from cleaning upward pollution equals the full toll of cleaning upwardly pollution
d. The output where the marginal cost of pollution is positive
66. Which of the following istrue?
a. Private costs are the aforementioned thing every bit external costs
b. Social costs are the same affair as the sum of private and external costs
c. Internal costs are the same thing as social costs
d. All of the higher up statements are true
For questions 67-68, consider the following. In several African countries where the rhinoceros was once a thriving species, the animal is now about extinct. In most of these nations, rhinoceros horns are used as traditional ingredients in certain medicines. Rhinoceros farming has been proposed every bit an alternative to the imposition of stiff penalties on people who are caught engaging in rhinoceros hunting.
67. The imposition of stiff penalties
a. Reduces the supply of rhino horns
b. Increases the price of rhino horns
c. Makes poaching more than lucrative
d. All of the higher up are correct
east. B & C only are right
68. If rhino farming was legal
a. The market price of rhino horns would fall
b. The incentive to poach would be reduced
c. More than rhino horns would be produced
d. All of the in a higher place are correct
east. B & C only are correct
69. If themarginal cost of making the air in Los Angeles 10 percent cleaner is $20 million, then themarginal cost of making the air in Los Angeles 20 percent cleaner is
a. Between $20 and $40 million
b. Uncertain. Nosotros need more information
c. $40 meg
d.More than $40 million
70. Assume the figure to the correct represents a market with a negative externality. One of the supply curves only includes the private costs of producing the good, while the other includes both the individual cost and the external cost of production. Referring to the effigy, the socially optimal toll is:
a. Between P2 and P3
b. P1
c. P3
d. P2
71. A common property resource
a. Has belongings rights that are indefinite or nonexistent
b. Is one that everyone owns
c. Is a nonexclusive resources in that no 1 tin exist prevented from using it
d. All of the above are right
72. For private contracting to solve the externality problem, all of the post-obit conditions must be metexcept
a. The government enforces contracts
b. The government knows the extent to which social costs exceed private costs
c. Transaction costs are low
d. The resources are privately owned
73. Nether a program called the Emissions Trading Scheme, the governments of European Matrimony member nations establish overall targets for greenhouse gas emissions and issue ________, or permits, authorizing companies to emit sure amounts. In theory, an increment in the market place clearing price of ______ should induce firms to develop methods of _______ their emissions of greenhouse gases.
a. Vouchers; pollution; reducing
b. Allowances; allowances; eliminating
c. Allowances; allowances; reducing
d. Vouchers; pollution; eliminating
74. Externalities tin be corrected and the market system will produce the socially efficient amount of goods if
a. The externality is "internalized" so that people are forced to face up the private and social costs of their deportment
b. Individuals are faced with the private and external costs of their actions when making decisions
c. Signals in the economy make decision-makers confront all the costs of their deportment
d. Whatsoever of the higher up accept identify
75. Which of the post-obit isnot a regional trading bloc?
a. NAFTA
b. WTO
c. ASEAN
d. The EU
76. The North American Complimentary Merchandise Agreement and the European Matrimony are examples of
a. Labor agreements designed just for industrialized contries
b. Trade blocs
c. Agriculturally based economies
d. Defense treaties
77. Ane main deviation between tariffs and quotas is that
a. Tariffs benefit domestic producers simply quotas do not
b. Consumers tin can import any amount of the imports that accept tariffs placed on them, only they are restricted to a gear up maximum amount they can import for goods subject to quotas
c. Tariffs raise the toll of imported products but quotas practise not
d. All of the above
78. Which of the following is consistent with international trade theory?
a. A country should strive for comparative advantage in manufacturing
b. The United states of america has been falling backside Europe and Nihon considering its economy is too open
c. The standard of living inside a country is a function of the strength of the economy and not of its relative position
d. The United states of america needs trade restrictions to stay competitive
79. If a firm in Mainland china sells its product in the U.Due south. at a cost below its toll of production, the firm is said to exist
a. Interim in the interest of consumers and producers in the U.S. market
b. Experiencing diseconomies of scale
c. Dumping its goods in the U.Southward. market
d. None of the above
fourscore. In the long run, imports are paid for by exports because
a. The regulations of the Earth Bank stipulate that this is how international accounts must be settled
b. All U.Due south. dollars ultimately must be held in the United Sates
c. For the most part, foreigners desire U.Due south. produced goods in substitution for the goods that are shipped to the United States
d. All of the above
81. The Usa economy is considered past the Institute for Direction Evolution to exist the most competitive economy because
a. Of a loftier saving rate
b. Of selected restrictions on imports from Nippon and Europe.
c. Of Widespread entrepreneurship
d. Americans are willing to work harder than anyone else is
82. When a business firm's production is subsidized past its government and then the firm sells its products in a foreign land at a price below the cost of product, this is called
a. A quota
b. A tariff
c. Involuntary export expansion
d. Dumping
83. If a country has a comparative advantage in the production of some good and then
a. That country should let other nations produce that practiced so that they may focus on new products that will aggrandize job opportunities for their citizens
b. That state can produce the adept at a lower opportunity cost compared to other producers
c. That country should specialize in the production of that good and non trade with other nations then that they can proceed all the gains for themselves
d. All of the above
84.In the graph shown, both world merchandise and world real Gdp are measured as alphabetize numbers and are arbitrarily fix equal to 100 for 1950. By 2005, the alphabetize for world trade has increased to a little over 2,400. Since 1950 world trade has increased by a multiple of
a. 16
b. 24
c. 8
d. 12
85. What is the difference betwixt a deficit particular and a surplus particular in the residual of payments?
a. A deficit item is when a country imports more it exports while a surplus is when a state exports more than information technology imports
b. A surplus particular is when a transaction leads to a payment by a state and a arrears particular is when a transaction leads to a receipt past a land
c. A deficit item is when a country exports more information technology imports while a surplus item is when a state imports more information technology exports
d. A deficit item is when a transaction leads to a payment by a land and a surplus detail is when a transaction leads to a receipt by a country
86. Under the aureate standard, if a state had a balance of payments deficit
a. Golden would flow out of that country and the domestic money supply would contract
b. National output and prices would fall discouraging imports and encouraging exports leading to an improvement in the balance of payments
c. Involvement rates would ascent which would concenter foreign capital and lead to an improvement in the balance of payments
d. All of the above
87.In the following graph, what is the equilibrium exchange charge per unit between the South African rand the U.S. dollars?
a. 0.05
b. 0.fifteen
c. 0.20
d. 0.25
88. In the graph, what is the situation when the dollar price of the Southward African rand is at 0.x?
a. There is a shortage of 8 trillion rand demanded
b. At that place is a surplus of 4 trillion rand
c. There is a shortage of 0.4 trillion rand
d. In that location is a surplus of 0.4 trillion U.S. dollars
89. The larger the electric current account surplus, the
a. Larger the total business relationship surplus
b. Larger the capital account arrears
c. Larger the balance of merchandise merchandise arrears
d. Greater the depreciation of the dollar
90. If the current account is in a deficit, the capital letter business relationship
a. Will be in a surplus
b. Volition be in a deficit
c. Will exist in balance
d. Can either be a deficit or surplus
91. A problem associated with flexible commutation rates is
a. Hedging
b. The disability for an economy to compete against strange substitutes
c. Foreign exchange take chances
d. Regime control over the substitution charge per unit
92.The following table lists the dollar figures of international transactions of the The states. Figures are in billions of dollars. The current account residuum is
a. $-50
b. $-150
c. $-100
d. $150
93. The capital account balance in the graph is
a. $150
b. $-150
c. $-100
d. $-50
94. How are flexible substitution rates determined?
a. The substitution charge per unit is determined where the electric current business relationship is equal to the upper-case letter account
b. The exchange charge per unit is determined where the quantity of exports demanded is equal to the quantity supplied of exports
c. The substitution rate is adamant where the quantity of exports demanded is equal to the quantity supplied of imports
d. The substitution charge per unit is determined where the quantity of a currency demanded is equal to the quantity supplied of the currency
95. The range of permitted exchange rate fluctuations between upper and lower bounds is referred to every bit the
a. Target zone
b. Exchange zone
c. Flexibility range
d. Gilded points
96. Nations manage their currency's exchange rate inside this target zone by
a. Buying and selling of regime securities
b. Open market operations
c. Buying and selling foreign exchange
d. Ownership and selling corporate bonds
97. Which of the following statements is consistent with bot the gold standard and the Bretton Forest agreement?
a. Exchange rate hazard was a serious problem under both exchange rate systems
b. Each exchange rate organisation was based on flexible exchange rates
c. Increases in the coin supply exercise not cause aggrandizement
d. Active monetary policy could not be pursued by a single economy
Source: https://answeryourquestion.net/1-marginal-revenue-for-a-monopolist-is/
0 Response to "An Industry Battle Between Incompatible Product Formats Can Occur if Competing Firms Selling Sets of"
Publicar un comentario