Econ exam 2 (not mine)

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

if the xyz company can sell 4 units per week at $10 per unit and 5 units per week at $9 per unit, the marginal revenue of the fifth unit is $5

true

if three or four homogeneous oligopolists collie, the resulting price and production outcomes will be similar to those of pure monopoly

true

it will be profitable for a firm to hire additional units of any resource up to the point at which its MRP is equal to its MRC

true

price and marginal revenue are identical for an individual purely competitive seller

true

the demand curve of a monopolistically competitive producer is less elastic than that of a purely competitive producer

true

the economic profits earned by monopolistically competitive sellers are zero in the long run

true

In a purely competitive industry competition centers more on advertising and sales promotion than on price

false

In maximizing profit a firm will always produce that output where total revenues are at a maximum

false

Pure monopolists always earn economic profits

false

because of the ability to influence price, a pure monopolist can increase price and increase volume of sales simultaneously

false

because of their large scale level of production pure monopolists over allocate resources to their industry by producing beyond the P=MC output

false

in the long run a pure monopolist must produce at that output where average total cost is at a minimum

false

in the long run monopolistically competitive firms make normal profits because they are forced to operate at the minimum point on their average total cost curve

false

in the short run a pure monopolist will charge the highest price the market will bear for its product

false

price discrimination is illegal in the US under antitrust regulations

false

price discrimination occurs every time a firm sells a good for two different prices

false

the demand curve for a purely competitive industry is perfectly elastic, but the demand curves faced by individual firms in such an industry are downsloping

false

the demand for loanable funds is perfectly elastic.

false

the monopolistically competitive seller maximizes profits by equating price and marginal cost

false

the supply of loanable funds is perfectly elastic

false

Demand is the active and supply the passive determinant of land rent

true

MRP is derived from the law of diminishing returns

true

Marginal cost is a measure of the alternative goods which society forgoes in using resources to produce an additional unit of some specific product

true

a competitive firm will produce in the short run so long as its price exceeds its average fixed cost

true

after all long run adjustments have been completed, a firm in a competitive industry will produce that level of output where average total cost is at a minimum

true

because the equilibrium position of a purely competitive seller entails an equality of price and marginal costs, competition produces up to an efficient allocation of economic resources

true

cost- benefit analysis is frequently difficult to apply because it is difficult to quantify the full benefits of a public good or service

true

demand is the active and supply the passive determinant of land rent

true

generally speaking, the larger the number of firms in an oligopolistic industry, the more difficult it is for those firms to collude

true


Kaugnay na mga set ng pag-aaral

Introduction to Cloud Computing 1

View Set

AP Psychology Chapter 10 Multiple Choice Practice

View Set

Ch. 13 - General Characteristics of Viruses

View Set

Research Methods Chapter 4 Study Set

View Set

Chapter 4 Internal Analysis: Resources, Capabilities, and Core Competencies K

View Set

Creating a Restraint-Free Environment

View Set