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the graph shows the marginal social costs, demand, and supply curves in the cinnamon roll market. A corrective tax pf ___ per unit will move the cinnamon roll market to the socially optimal output of ___ units

$4, 4

your company sells 19 units at a price of $10 and must change price to $9.90 in order to sell 20 units. What is the marginal revenue of the twentieth unit?

$8, you must units*price and then subtract the revenue differences

what is the marginal revenue product of the second worker ?

800

When price discrimination is practiced, a company sells ___ and charges ____ compared to what it would do without practicing price discrimination

A large output, a greater range of prices

What attracts new sellers into a market?

Existing sellers in the market earning economic profits

Assume that there is free entry and exit in the management consulting market. How profitable can Mario except his new consulting business to be in the long run?

It will experience zero economic profits

the marginal revenue product of labor is equal to:

MPL * P

In which if the following situations would Max Doughnut Shop have the greatest market power?

The closest doughnut shop or bakery is 25 miles away from Max shop

What is the relationship between a company market power and the price that the price that the company's owner can charge for its product

The greater the market power, the higher the price the firm can charge without losing many customers

when sellers exit a market in which the average seller has losses, the remaining sellers will each experience

a rising price, higher sales, and increased market power

what is collusion?

agreements between sellers to limit competition, and the most common way of colluding is price fixing

a higher wage paid to encourage greater worker productivity is:

an efficiency wage

we discussed two research papers about statistical discrimination. What are these papers?

ban the box (BTB); pink work (same-sex marriage legalization)

after Giselle increased worker training at her company, the output per worker rose by 5%. What impact would this have on labors marginal revenue product and her demand for labor?

both marginal revenue product and demand for labor would increase

when a seller has a high level of market power, the seller

can raise its price without losing many customers

the marginal private benefit curve is also the

demand curve

candices stand up paddle board company will ear profits producing and selling at any output level where the companys:

demand curve is above its average cost curve

the formula for calculating accounting proft is total revenue- ____ costs

explicit financial

the marginal private benefit is the

extra benefit enjoyed b y the buyer of one extra unit of a good or service

the marginal product of labor is the

extra production that occurs from hiring an extra worker

marginal revenue product is the

extra revenue produced by hiring an additional worker

when a good is non-rival and non-excludable, it suffers from the _____ problems

free-rider

which graph shows the scenario where the substitution effect dominates labor supply decision?

graph A

which of the following is NOT true about imperfect competition?

greater product differentiation decreases market power

when setting prices for different groups of customers, a manager should charge lower prices to groups that

have a more elastic demand

compensating differentials lead to :

higher salaries for more unpleasant jobs.

when the wages for public school teachers rises by 15% in a state, the number of people seeking jobs as teachers

increases

game theory is helpful in analyzing situations in which there is _____ the decisions makers.

interdependence between

why are cooperative agreements rare in markets with strategic interactions?

it is too hard to predict what other players will do

the supply curve of a firm is also its _____ cost curve

marginal private

the change in total revenue from selling one additional unit of output is the

marginal revenue

an employers labor demand curve is equal to the

marginal revenue product curve

the most common market structure are

monopolistic competition and oligopoly

when firms in a market with free entry and exit have economic profits, then:

new companies will enter the market, reducing average company profits

to accumulate human capital, you can

obtain it through education, training, and experience

if Larry uses the rational rule for employers, how many workers will he hire?

one

when a market transaction has beneficial effect on by standards who were not involved int he transaction, this effect causes a

positive externality

quotas change___ and taxes change ___ when they are used to deal with externalities

quantity, price

the highest price that a customer is willing and able to pay for a product is the customers

reservation price

if a government increases subsidies for childcare, there will be a ___ in the countrys labor market:

rightward shift of the labor supply curve

who gains and who loses when robots replace workers?

robot owners gain, and displaced workers lose

a major factor behind the exceptionally high salaries of superstars is:

technological advance, which has expanded the market for superstar talent

what three conditions must be present before a company can price discriminate?

the company can identify how much each customer is willing to pay; the product cannot be resold the company has market power

an employer should hire one more worker if

the marginal revenue product exceeds the wage

price discrimination can be successful only if

the product cannot be resold

the marginal social cost is:

the sum of marginal private costs and marginal external costs

total profit equals:

total cost minus total revenue

How do you calculate average cost

total cost/quantity

martas company definitely has economic profits in which of the following situations?

total costs are less than total revenue

profit margin =

total revenue -total cost / fixed costs

how does the price customers pay under price discrimination compare to the price with no price discrimination or the one that is set according to the marginal cost = marginal benefit?

under price discrimination, some customers pay a higher price, and some pay a lower price

when an employer makes decisions based on statistical discrimination, it is:

using observations about the average characteristics of a group to make inferences about an individual

Alena manages a small theme park. She hires one more custodian at $450 per week, and her park is cleaner and more attractive. As a result of this improvement, ticket sales rise by 40 tickets per week. Tickets sell for $12. Use the Rational Rule for Employers to determine if hiring the extra custodian was a good move.

yes it was a good move because it added more to revenue than to cost

The goal of price discrimination is to increase

Profit by charging each customer the highest price he is willing to pay

According to the cost benefit principle, the number of labor hours demanded will ____, and the number of labor hours supplied will ____ as the wage decreases

Rise, fall

When a price discriminating company lowers price for potential new customers who wouldn't buy otherwise, total economic surplus

Rises with the gain shared by sellers and buyers

With a ___ number of sellers in a market, ____ market power tends to exist in the market.

Smaller, more

Total revenue divided by quantity is called ___ or ____

Average revenue, price


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