Econ Test 3 MC 26-50

Suppose that a monopoly firm produces tables and can sell 10 tables per month at a price of $400 per table. In order to increase sales by one table per month, the monopolist must lower the price of its tables by $30 to $370 per table. The marginal revenue of the eleventh table is:

$70

If the sellers of labor in a competitive market decided to unionize, ceteris paribus, then:

wages would rise and employment would fall

A gap in the marginal revenue curve results from:

a kinked demand curve

The soft drink market is dominated by Coke, Pepsi, and very few other firms. The firms often start price wars. The market can best be classified as:

oligopoly

Which of the following is the same for monopoly and competition under the same cost and demand conditions?

the amount of output that is produced

The best measure of the economic cost of doing your homework is

the most valuable opportunity you give up when you do your homework

The only market structure in which there is significant interdependence among firms with regard to their pricing and output decisions is:

monopoly

Which market structure is characterized by a few interdependent firms?

oligopoly

When the MPP of labor is zero, ceteris paribus:

No further increases in output can be achieved by using additional units of labor

Compared with the profit-maximizing choice of a natural monopolist, output regulation will result in:

A higher level of output and a lower price

Which of the following rules will always be satisfied when any firm (i.e. perfectly competitive or monopoly) has maximized profits?

MR=MC

Oligopolistsic firms will maximize total profits for all of the firms in the market at the rate of output where:

MR=MC for the market

The collapse of AT&T's natural monopoly in long distance telephone service was caused by:

Satellite technology which made it easier and less expensive for new companies to provide long distance- service

According to the text, what type of market failure provides the best case for government regulation?

market power

At very high wage rates, it is likely that an individual's labor-supply curve:

bends backward

The demand for labor is downward sloping because of:

diminishing returns to labor

The supply curve for a monopolist:

does not exist

If a firm can raise market price by reducing its output, then:

it faces a downward-sloping demand curve

Ceteris paribus, if immigration to the United States increases the number of workers:

the labor-supply curve will shift to the right and the equilibrium wage rate will fall.

To be successful in changing wage rates and employment conditions, labor unions need to have control over only

their own members

As long as additional workers are attracted into the labor force by higher wages, the market labor supply curve is:

upward-sloping

The quantity of labor demanded can change without shifting labor demand curve when there is a change in:

wage rate