Economic Assignment

A) 

only for all points less than B.

B) 

only at points B and C.

C) 

for points between B and C.

D) 

for all points less than B and greater than C.

A) 

A.

B) 

B.

C) 

C.

D) 

D.

A) 

the price per unit sold is greater than the average fixed cost per unit produced.

B) 

the price per unit sold is greater than the average variable cost per unit produced.

C) 

marginal revenue is at least the price per unit sold.

D) 

the price per unit sold is equal to or greater than the marginal cost of production.

A) 

This firm is earning an economic profit.

B) 

This firm is experiencing an economic loss.

C) 

This firm is breaking even.

D) 

This firm's total revenues equal HRD0.

A) 

P = ATC.

B) 

P = AVC.

C) 

MR = MC.

D) 

MR = ATC.

A) 

minimized.

B) 

maximized.

C) 

zero.

D) 

equal to average fixed cost.

A) 

used by economic decision-makers to inform others about their plans.

B) 

the method by which government planners inform economic decision-makers about the types of decisions they should make.

C) 

the method by which firms determine their profit maximizing quantity.

D) 

compact ways of conveying to economic decision makers information needed to identify industries where more resources are needed.

A) 

horizontal.

B) 

vertical.

C) 

upward sloping.

D) 

downward sloping.

A) 

only for all points less than B.

B) 

only at points B and C.

C) 

for points between B and C.

D) 

for all points less than B and greater than C.

A) 

Increase production above the current output rate, because MC = MR at this rate of output.

B) 

Continue to produce the current output rate, because P > AVC.

C) 

Shut down, because AVC > P.

D) 

Shut down, because ATC > P.

A) 

a decreasing-cost industry.

B) 

a constant-cost industry.

C) 

an increasing-cost industry.

D) 

that some input prices change as firms enter and exit the industry.

A) 

produces too little output but also charges a low price.

B) 

produces too much output and charges too low a price.

C) 

restricts output and charges a relatively higher price than a purely competitive firm.

D) 

is just as good as a purely competitive firm in terms of output and price.

A) 

a price of P1 and output of Q1.

B) 

a price of P4 and output of O1.

C) 

a price of P2 and output of Q2.

D) 

a price of P3 and output of Q3.

A) 

simply moves across its horizontal demand curve to a larger quantity.

B) 

moves down its demand curve to a lower price that will increase quantity demand.

C) 

can continue to receive the same price it always has as long as it has its customers' goodwill.

D) 

must be willing to lower the barriers to entry that have protected it.

A) 

will keep the price the same.

B) 

must lower the price on all units.

C) 

must accept lower profits.

D) 

must lower the cost of production.

A) 

Patents

B) 

Licenses

C) 

Economies of scale

D) 

U.S. antitrust legislation

A) 

finding the quantity at which marginal cost and marginal revenue are equal and then using the demand curve to find price.

B) 

determining the price by finding the highest price at which sales can be made and then using the demand curve to find the appropriate quantity.

C) 

finding the point at which marginal revenue and demand intersect. This gives the price and quantity that maximizes profits.

D) 

finding the quantity at which average revenue and average total cost are furthest apart.

A) 

price discrimination.

B) 

cost-plus pricing.

C) 

price differentiation.

D) 

product differentiation.

A) 

refusal by a firm to sell to all customers.

B) 

selling of a given product at more than one price when the price differences reflect cost differences.

C) 

pricing of a product so that not everyone can afford it.

D) 

selling of a given product at more than one price when the price difference is unrelated to cost differences.

A) 

a market failure.

B) 

a deadweight loss.

C) 

an unrealized loss.

D) 

a market externality.

A) 

maximized economic profits.

B) 

maximized total revenue.

C) 

average total profits.

D) 

total costs.

A) 

cartel pricing.

B) 

price discrimination.

C) 

simple monopoly behavior.

D) 

price sampling.

A) 

direct marketing.

B) 

mass marketing.

C) 

interactive marketing.

D) 

None of these.

A) 

P1.

B) 

P2.

C) 

P3.

D) 

P4.

A) 

informational advertising.

B) 

persuasive advertising.

C) 

search advertising.

D) 

experience advertising.

A) 

a credence good.

B) 

a search good.

C) 

an experience good.

D) 

a persuasive good.

A) 

make a profit of $24,000.

B) 

make a profit of $30,000.

C) 

make a profit of $0.

D) 

incur a loss of $20,000.

A) 

advertising that permits a consumer to follow up directly by searching for more information and placing direct product orders.

B) 

advertising that targets a specific audience and allows the consumer to follow up directly by placing direct product orders usually through television or radio.

C) 

advertising targeted at specific consumers.

D) 

advertising intended to reach as many consumers as possible.

A) 

Panel C & Panel A.

B) 

Panel C & Panel B.

C) 

Panel B & Panel C.

D) 

Panel C & Panel D.

A) 

a credence good.

B) 

a search good.

C) 

an experience good.

D) 

a persuasive good.

A) 

perfect competition.

B) 

monopolistic competition.

C) 

oligopoly.

D) 

monopoly.

A) 

companies colluding in order to make higher than competitive rates of return.

B) 

the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry.

C) 

a game in which firms will not negotiate in any way.

D) 

when plans made by firms are known as game strategies.

A) 

Two firms choose incompatible product formats.

B) 

Two firms choose one compatible product format.

C) 

Two firms wish to coordinate on one compatible product format but cannot agree on which one.

D) 

Two firms choose to engage in a noncooperative game.

A) 

collusion.

B) 

vertical merger.

C) 

noncooperative competition.

D) 

negative sum game.

A) 

strategic dependence among firms in the industry

B) 

product differentiation

C) 

barriers to entry

D) 

marginal cost pricing.

A) 

they will charge a common, higher market price.

B) 

they will collectively produce more than before.

C) 

all three firms will stop producing.

D) 

all three firms will earn zero profits.

A) 

players are better off if they act independently.

B) 

monopolies are beneficial to society.

C) 

people will always cheat.

D) 

players would be better off if they cooperated.

A) 

Perfect competition and monopolistic competition.

B) 

Monopolistic competition and oligopoly.

C) 

Oligopoly and monopoly.

D) 

Monopolistic competition, oligopoly and monopoly.

A) 

the firm may be earning more than a normal rate of return on investment.

B) 

the quality of service might be lowered.

C) 

that social regulation may follow.

D) 

the demand for the good may be greater than the supply.

A) 

Governments regulate natural monopolies in order to ensure that costs of production are minimized.

B) 

Governments regulate natural monopolies in order to ensure that the firm earns a normal profit.

C) 

Governments regulate natural monopolies in order to prevent them from making profits.

D) 

Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.

A) 

asymmetric information.

B) 

symmetric information.

C) 

caveat emptor.

D) 

a market failure.

A) 

marginal cost equals marginal revenue.

B) 

marginal cost equals average total cost.

C) 

marginal cost equals price.

D) 

average total cost equals price.

A) 

only began after World War II.

B) 

costs less now than it did in the 1980s.

C) 

has increased steadily since 1970.

D) 

is confined to antitrust law.

A) 

particular; individual

B) 

particular; all

C) 

all; individual

D) 

utility; healthcare