Microeconomics Final
A monopolist can sell 200 units of output for $36 per unit. Alternatively, it can sell 201 units of output for $35.80 per unit. The marginal revenue of the 201st unit of output is
$-4.20
When an industry is a natural monopoly
a larger number of firms will lead to a higher average cost
There is general disagreement among economists about the role of advertising but there is widespread agreement about the role of brand names on market efficiency
False
Evaluating normative statements involves values as well as facts
True
If the income elasticity of demand for a good is negative, then the good must be an inferior good
True
Private goods and club goods have in common that they are excludable, but are different in that private goods are rival while club goods are not rival in consumption
True
Suppose a certain good provides and external benefit. IF the private cost of the last unit of the good that was produced is equal to the social value of that unit, then the sum of producer and consumer surplus is maximized
True
When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers
True
Two types of private solutions to the problem of externalities are
charities and the Golden Rule
If the price of apples increases, the
demand for apple pickers will shift to the right
In a duopoly situation, the logic of self-interest results in a total output level that
exceeds the monopoly level of output, but falls short of the competitive level of output
Discrimination is an emotionally charged issue that is impossible to study objectively
false
Economists believe that the optimal level of pollution is zero
false
If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired, then the addition of the sixth worker causes total total output to decline
false
Trade can make everyone better off except in the case where one person is better at doing everything
false
Whether an oligopoly consists of 3 firms or 10 firms, the level of output likely will be the same
false
Incomes of U.S. households in the 1970s and 1980s
grew slowly, due to slow growth of the output of goods and services per hour of U.S. workers' time during those decades
The quantity sold in a market will decrease if the government
increases a tax on the good sold in that market
two goods are complements when a decrease in the price of one good
increases the demand for the other good
Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except the ones listed. A firm offers a higher salary to worker A than worker B because worker A
is a young blonde woman, whereas worker B is an older, gray-haired man
When a market is monopolistically competitive, they typical firm in the market can ear
losses in the short run and zero profit in the long run
the commercial jetliner industry consisting of Boeing and Airbus would best be described as a
oligopoly
A firm produces the welfare-maximizing level of output
only when the market is perfectly competitive
Value of the marginal product is defined as the additional
revenue earned from hiring one more factor of production
For a horizontal demand curve,
slope and price elasticity of demand are both equal to 0
As a result of a successful attempt by government to cut the economic pic into more equal slices
the pie gets smaller, and there will be less pie overall
Suppose there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticker to $30 per ticket, then
the supply curve will shift downward by $20, and the effective price received by sellers will increase by less than $20
In a long-run equilibrium, both perfectly competitive markets and monopolistically competitive markets have price equal to average total cost
true
in a competitive market for labor, the equilibrium wage always equals the value of the marginal product
true