Econ 2000 Coombs final

Monopolist can practice price discrimination or monopoly markets

False

Which of the following statements is not correct

Both monopolistic come competition and perfect competition are characterized by product differention

And both perfect competition and monopolistic competition each firm

Can enter and exit the market freely

A firm in a monopolistically competitive market can earn both short run and long run profits

False

The rental price of capital is the price of person paste on the capital indefinitely

False

An event that changed the supply of any factor of production can alter the earnings of all the factors

True

In a monopolistically competitive market the number of firms adjust until economic profits are driven to zero

True

In cartels the reason that the monopoly output is unstable was due to the factors that the present is a prisoners dilemma

True

In the United States from 1935 to 2011 the share of total income earned by the bottom fifth of income earners rose and then fell

True

What is victors opportunity cost of operating his new business

$175,000

If the price of good X is $15 what is the price of a good Y

$50

Aliyah's wage increases to $85 per hour of writing which of the following points would fall in our budget constraint

85 hours of leisure $2890 of consumption

Monopolies are socially and efficient because the price they charge is

Above marginal cost

Sunshine's organic market sells organic produce. Assume that labor is the only important that varies for the firm. The store manager has determined that if she hires nine workers the store can sell 230 pounds of produce per day if she hires 10 markers the store console to 90 pounds a produce per day. The story earn six dollars for each trying to produce that it sells and the manager pairs each worker $60 per day which of the following is correct

For the 10th worker the marginal revenue product is $360 per day

Which of the following list correctly drinks countries from most equal to least equal distribution of income

Germany, Japan, United States, Brazil

Sherman experiences and increasing his hourly wage. His optimal choice point where it's from a to B. For Sherman

His labor supply curve is backward bending

Which of the following statements is correct

If duopolis successfully collude, then they're combined I'll put will be equal to the output that would be observed if the market were monopoly

In a natural monopoly

If the government requires marginal cost pricing it will likely have to subsidize the firm

If the firm doubles its output from 6 to 12 minutes total revenue will

Increased by exactly $30

Assume that the government is closing in negative income tax that calculates the tax owed as follows. 1/3 times income equals taxes owed. $10,000 if a family doesn't earn any income how does the negative income tax affect it

It will receive an income subsidy of $10,000

Rent, interest, and profit or all forms of income paid to the owners of

Land and capital

The firm hires the factor up to the point where the values of the factors marginal product is equal to the factors price, this statement applies to which factor of production

Land, labor, and capital

Mrs. Joplin sells colored pencils the colored pencils industry is competitive message Joplin hires a business consultant analyzer companies financial records. The consultant recommends that Mrs. Joplin increase her production. The consultant must have concluded that at her current level of production Mrs. Joplins

Marginal revenue exceeds marginal cost

Total revenue equals

Price x Quantity

Delish a motor price restaurant has recently announced intentions to open a restaurant in Boston. Assume that the restaurant market in Boston is characterized by a monopolistic competition. As a result of the new restaurant consumers and Boston are likely to experience

Product variety externality which is positive externality

One problem with government operations of monopolies is that

The government typically has a little incentive to reduce cost

Dont tells fishmarket is the only place within 125 miles that sells yellowfin tuna assuming that Dontrell monopolist maximizing his profit, which statement is true

The price of Dontrells yellowfin tuna will see Dontrells marginal cost

If the minimum wage in this market is nine dollars

There is a surplus of 6 million workers

Suppose the millennials generation values lesiure more than the past generation. We can expect a decrease in the labor Supply as the Millennials enter their prime working ages and a corresponding increase wages

True

The maximin criterion is The idea that the government should aim to maximize the well-being of the worst of person in society

True

Assume a certain firm is a calm tentative market is producing 1000 units of input at 1000 Q, the firms marginal cost equals $15 and its average total cost equals $11 the firms sells its output for $12 per unit

$1,000

The information in the following table shows the demand for Internet radio subscriptions in a small urban market similar to each company that provided the subscriptions in an annual fixed cost of $20,000 per year at the marginal cost of providing an additional subscription is always $16 how much profit which would each firm earn when this market reaches a Nash equilibrium

$12,000

Suppose Corey purchases the factory freezing $200,000 of her own money and 200,000 bars from a bank at an interest rate of 6%. What is Corey's annual opportunity cost of purchasing the factory

$18,000

Assume that a local restaurant sells two items selling steaks. The restaurant only two customers on a particular day are Mrs. carnivore and Mrs. leafy greens. Mrs. carnivore is willing to pay $20 for a steak and seven dollars for salad. Mrs. leafy greens is willing to pay only eight dollars for a steak but is willing to pay $12 for the salad. Assume at the restaurant can provide each of those items as a marginal cost. If the restaurant is unable to use tying which is the profit maximizing price to charge for a steak

$20

25% of all families have income below what level

$23,000

What is the change and employment of having the minimum wage at nine dollars instead of seven dollars

2 million jobs are lost

Given demand for labor D and supply of labor S, what is the surplus of labor of a minimum wage of eight dollars per hours is imposed on the market

200

Suppose that an industrial accident and a factory destroys a significant number of high speed blenders that bartenders used to mix frozen drinks. What will happen to the bartenders?

Both wages and employment will decrease

A utilitarian government will pursue policies that redistribute income from the rich and the poor. One problems with these policies is that

Everyone has less incentive to work hard

A manufacturer of lightbulbs sells it's probably to retail stores in requires a store to sell the bulbs to customers for two dollars per bulb this practice is "tying"

False

Average total cost reveals how much total cost will change as the firm alters it's level of production

False

Consumers will always consume more of a good if their income increases

False

For a table firm fix cost increases direct proportion to the increase in output

False

One example of labor market discrimination is that a firm i'd be less likely to interview a Job candidate whose résumé clearly indicates he is not a good fit for the job

False

Suppose a firm is considering Producing zero units of output. We call this exiting an industry in the short run and shutting down in the long run

False

Suppose the government implemented a negative income tax and use the following formula to compute a families tax liability 1/4 of income equals $14,000. The negative income tax ensures that families earn at least $56,000

False

Suppose three firms Form a cartel and agreed to charge specific price for the output each individual firm has an incentive to maintain the agreement because the firms individual profits will be the greater under the cartel arrangement

False

The slope at any point on an indifference curve equals the absolute price of which consumers is willing to substitute one good for the other

False

The supply curve for an a monopolist in the short run is defined the same way as that for a competitive firm is the portion of the marginal cost curve above average variable cost

False

When an individual firm in a competitive market increases its production it is likely that the market will fall

False

Which of the following industries is most likely to exhibit the characteristics of free entry

Fashion jewelry

In recent years the ratio of earnings of the typical US college graduate to the earnings of a typical high school graduate without additional education has

Risen as the demand for skilled labor has increased relative to the demand for unskilled labor

Which of the following industries has the highest concentration radio

Soda

Suppose the market is served by two pharmaceuticals face the marginal cost curve shown in the diagram the marginal revenue curve Monopolist but face in the market is also soon. If the firms are able to collude successfully

The total output will be three units on the price will be seven dollars per unit

Suppose that the market for labor is initially in equilibrium. An increase in immigration will cause the equilibrium wage

To fall in the equilibrium quantity of labor to rise

When an industry is a natural monopoly

a larger number of firms will lead to a higher average cost

Monopoly firms face

downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve.

Consider the market for capital equipment. Suppose the value of the marginal product of capital equipment increases. Holding all else constant the equilibrium rental price of capital equipment will

increase

When a monopolistically competitive firm raises its price

quantity demanded declines but not to zero

According to the maximin criterion, income should be transferred from the rich to the poor as long as it

raises the well-being of the least fortunate.

The socially efficient level of output supplied to this market

$6,000

Kate is a florist and can arrange 20 bouquets Per day. She is considering hiring her husband William number for William can arrange 18 bouquets Per day would be the total output of kids for them if she had her husband

38 bouquets

Only two firms JKL and XYZ So similar product. The following table shows the demand curve for their product each room as the same constant marginal cost of eight dollars and 06 calls. If this market were perfectly competitive instead of oligopolistic which quantity would be produced

50

Dr. Vinson is regarded as by far the best in us in his part of the country, yet his income is not significantly higher than the average income for a dentist in his area. In contrast, oh Johnson the best baseball player in that region earns for five times the average salary of all baseball players. This most likely explanation is that

Bo Johnson unlike Dr. Benson can provide services to millions people simultaneously

In which of the following market structures confirms earn economic profits in the long run

Monopoly only

If the market price is five, the firm will earn

Negative economic profits and shut down

Which of the following is an example of a compensating differential

Paying workers who work on the dayshift lower wages and workers who work the night shift, all else equal

Which of the following statements is correct

Permanent incomes are more equally distribute than anyone incomes

A restaurant which operates in perfect competitive market is evaluating whether it should serve breakfast on a daily basis. It would choose to do this when its revenue covers a variable cost

True

By selling hard cover books to diehard fans in paperback books to listen to siesta greeters, the publishers able to price discrimination and raise its profits

True

Defenders of advertising are you that firms use Advertising as a signal of quality, even if the advertising delivers little helpful information about the product

True

Education and on the job training are sources of human capital

True

If all of firms in an oligopoly successfully collude and form a cartel that then Total profit for the cartel is equal to what it would be if the market were monopoly

True

If men's preferences forward change such that more men want to be a stay at home fathers, the wages paid to men who remain in the workplace would rise all else equal

True

If the government regulates the price in natural monopolies can charge to be equal to the firms marginal cost the government will likely need to subside the firm

True

In the long run monopolistically competitive firms produce were demand equals average total cost

True

Streetcar owners in the early 20th century were against segregation to profit maximizing reasons

True

Suppose the government implemented a negative income tax and use the following formula to compute a families tax liability 1/4 of income equals $14,000, a family earning $56,000 before taxes will have $56,000 after taxes

True

When economic profits are zero in equilibrium The firms revenue must be sufficient to cover all opportunity cost

True

efficiency wages Will raise the quality of labor supplied to the market

True