economics final

The market price of pomegranates is $2, & JoAnn sells 25 pomegranates, her total revenue is _____ and the MR is ______.

$50; $2

If Glass, Inc. produces 80 window panes per day at the market price of $60 in a perfectly competitive market, what would happen to price if they increased to 120 panes a day, all else equal?

The price would remain the same.

Which statement is NOT correct about markets?

They require a physical location.

Which of these could happen in the short run?

Walmart hires 5 new workers

If the price of copper plates is $70 and a firm is producing to where the MC is $65, is this firm maximizing its profits?

You cannot determine without MR

Which factor will NOT cause a change in demand?

a decrease in the price of a good

Which product is least likely to be produced in a perfectly competitive market?

airline jet fuel

Marginal product is:

change in total output divided by change in labor input

Marginal cost is calculated by:

dividing the change in total cost by the change in output

Teacher salaries are 70% of the cost of teaching a 6th grader. The demand for teacher is:

elastic

In a perfectly competitive industry, short-run economic profits will lead firms to _____ the market, causing market price to ______.

enter; decrease

The supply of coffee has increased twice as much as the demand for coffee. As a result...

equilibrium price decreases, but eq. quantity increased

Any business decision should take sunk costs into consideration

false

By producing a number of different products that are independent, a firm can experience economies of scale.

false

If sellers expect the price of a good to rise in the future, they are likely to increase their supply in the near future.

false

Very few industries experience constant returns to scale.

false

The long-run supply curve is _____ than the short-run supply curves bc supply is __________ elastic in the long-run?

flatter; more

which is NOT a determinate of demand?

history of the product

The substitution effect means that:

if wages increase, hours worked increases

If each of your first seven employees add more to output than the previous worker hired, you are experiencing:

increasing marginal returns

If the wages of Nike employees increases by 25% & the quantity of labor demanded falls by 10%, the demand for labor is:

inelastic

Bus tickets are often considered _____ goods because _____.

inferior; bc as income increases, demand for bus tickets falls.

What is a decreasing cost industry?

memory chips for tablets

Which item is NOT a determinant of supply?

national income

A firm in a perfectly competitive industry would exhibit what characteristic? I. an ability to produce as much output as the firm desires at the market price II. no econ. profits in the short run but possible econ. profits in the long run

only I

A form of business that is owned jointly by several owners and in which there is unlimited liability is:

partnership

Which market structure does not exhibit a downward-sloping demand curve for the firm?

perfect competition

Which sequence of market structures ranks the barriers to entry from the fewest to the most?

perfect competition; oligopoly; monopoly

On a demand curve:

price is on the vertical axis and quantity demanded is on the horizontal axis.

A firm will MOST likely decrease the price of its output if the:

quantity supplied of the good exceeds the quantity demanded

Suppose that a new law passes that causes worker conditions to improve. The labor supply curve should shift ____ and the number of workers available will _____.

right ; increase

If consumers believe that an item will not be available in the future, then demand will shift ______ and the equilibrium quantity will _______.

right; rise

When a firm experiences diseconomies of scale, average costs:

rise as output falls

If ATC is $10, and the price is $8 at the profit-maximizing quantity, what will happen in the long run in a perfectly competitive market?

some firms will exit the market, pushing the market price higher

The state of Florida is experiencing a drought that has caused the price of water that grows oranges to rise. This will cause a decrease in:

supply of oranges

If the Clearwater Cotton Candy Company lays off its workers and shuts down, it incurs costs of $30,000. If it produces at full capacity it incurs costs of $90,000. One would conclude that:

the costs of variable inputs at full capacity is $60,000

If the market's price is $60, a firm's minimum ATC is $70, & minimum AVC is $50, what should the firm do?

the firm should continue to produce in the short run to minimize losses

If a firm can change all of its factors of production, then it is operating in:

the long run

A shift of the supply curve occurs when 1+ of the determinants of supply changes.

true

Economists have not been persuaded yet that alt. behavioral assumptions for firms, such as sales maximization, yield superior results to the assumption of profit maximization:

true

In the US, it is illegal for companies to restrict hiring to only workers who have joined a union.

true