Econ

Refer to Figure 13-4. Which of the figures represents the total cost curvefor a typical firm?

Figure 2.

Refer to figure 16.2. Which of the following will occur in the long run of this industry?

Firms will enter this industry.

Refer to Figure 15-7. To maximize total surplus, a benevolant social planner would choose which of the following outcomes?

Q=45 and P=45

The Sherman antitrust act

Restricted the ability of competitiors to engage in cooperative agreements.

Refer to Figure 20-2. Which of the following is consistent with the data reported in the figure?

The female poverty rate is higher for all age groups than the male poverty group.

A government created monopoly arises when?

The government gives a firm the exclusive rights to sell

If the government decided that each family needs a minimum income of 25000 and promised to make up the difference between what a family earned and 25000, which is correct?

The government is effectively taxing every dollar earned up to 25000 at a rate of 50%

In which of the following markets are strategic interactions among firms lost likely to occur?

The market for tennis balls.

A cooperative agreement among oligopolists is more likely to be maintained,

The more likely it is that the game among the oligopolists will be played out over and over again.

Farmer Mcdonald sells wheat to a broker in Kansas City. Because the market for wheat is generally considered to be competitive, Mcdonald maximizes his profit by?

The quantity at which market price is equal to Mcdonalds marginal cost of production

A monpolistically competitive firm chooses?

The quantity of output to produce, but the price of its output is determined by demand.

Refer to Figure 17-1. Suppose the market is served by 2 firms who each face the marginal cost curve shown in the diagram.If the firms are able to collude successfully ?

The total output will be 2 units and the price will be $8.00 per unit.

As the number of firms in an oligopoly increases,

The total quantity of output produced by firms in the market gets closer to the socially efficient quantity

Refer to Figure 19-1. If the minimum wage in this market is $8, then ?

There is a surplus of 3 million workers.

Refer to figure 16-2. assuming the firm is maximizing profitthis firm is operating,

in the short run and earning a positive econonomic profit

Refer to FIgure 14-2. If the market price is 10$ what is the firms short run eceonomic profit?

$15

Assume a firm in a competitive industry is producing 800 units of output, and it sells each unit for $6. Its profits is?

$1600

Refer to Figure 16-2. How much consumer surplus will be derived from the purchase of this product at the monopolistically competitive price?

$200

If the US government determines that the cost of feeding and urban family of 4 is $7500 a yearthen the official poverty line is?

$22500

Refer to Figure 17-1. Suppose this market is served by two firms who each face the marginal costcurve shown in the diagram, If the firms were able to collude succesffuly each firm should earn a profit equal to?

$4.

Refer to Table 14-4. What is the total revenue from selling 4 units?

$480.

Refer to Figure 19-5. Given demand for labor D1 and supply of laborS1 what are the equilibrium wage and quantity of labor?

$6 and 200

Refer to Figure 18-1. Suppose the firm hires each unit of labor for $600 per week, and each unit of output sells for $9. What is the value of the marginal product of the third worker?

$675

Refer to Figure 16-2. What price will the monopolistically competitive firm change in this market?

$80

A competitive firm sells it output for $60 per unit. The firm pays its workers a wage of $150 a day. For the 11th worker, the value of the marginal product of labor is?

$960.

Refer to Figure 15-4. What area measures the monopolists profit?

(K-B) x W

Refer to Figure 16-2. How much output will the monopolistically competitive firm produce in this situation?

20 units

Refer to Figure 14-4. If there are 300 identical firms in this market, what level of output will be supplied when price is 1.00

30,000

Refer to Figure 14-4. If there are 300 identical firms in this market, what level of output will be supplied to the market when price is $1.00?

30000

Refer to Table 18-1. Suppose the the firm pays its workers 45 per day. Each unit of output sells for $10. How many workers should the firm hire?

4

Refer to Table 17-1. If Rochelle and Alec operate as a profit maximizing monopoly in the market for waterhow man gallons will be produced and sold?

600

Refer to Figure 15-5. Based upon the information shown, how many units will Bearclaws produce to maximize profit?

70.

Refer to Table 18-1. What is the marginal product of the second worker?

8.

Refer to Figure 13-2. Which of the curves is most likely to represent average fixed cost?

A

Which example illustrates an oligopoly market?

A city with two firms who are licensed to sell school uniforms for the local schools.

Construction work is much riskier than working as a server at a restaurant. As a result, we'd expect a differences in wages between the two. The difference is known as?

A compensating difference

For a firm, marginal revenue minus marginal cost is equal to?

Change in profit.

When an oligopoly market reaches a Nash equilibrium,

A firm will have chosen its best strategy, given the strategies chosen by other firms.

Adibok knows that its produces and sells high quality athletic shoes. Wurkout knows that it produces and sells low quality athletic shoes?

Adibok has an incentive to spend a large amount of money on advertisements

Which of the following does not explain the rise in income equality in the United States from 1970 to 2017?

An increase in minimum wages

For an individual firm operating in a competitive market, marginal revenue equals?

Average revenue, the price, and marginal cost for all levels of output.

If a firm in a monopolistically competitive market successfully uses advertising to decrease the elasticity of demand for its product, the firm will?

Be able to increase its markup over marginal cost.

Refer to FIgure 13-3. Why doesnt the total cost curve begin at the origin?

Because fixed costs are positive when output is 0.

Dr. Benson is regarded as the best dentist in his part of town. In contrast Bo Johnson the baseball player earns 5x the salary of all baseball players. The most likely is that?

Bo Johnson unlike Dr. Benson, can provide his services to millions of people simultanouesly.

Refer to Figure 13-5. The efficient scale of production occurs at which quantity?

C

Refer to Figure 18-2. Each August many high schooland college stuents visit a doctors office to have a physical test. If the price of physicals fall, what happens?

Demand decreases from D2 to D1

Economists generally agree that,

Differences in average wages do not by themselves provide conclusive evidence about the magnitud

A disadvantage associated with in-kind transfersto reduce poverty is that they?

Do not allow poor families to make purchases based on their preferences.

In the long run a company that produces and sells popcorn incurs total costs 1050 when output is 90 canisters and 1200 when output is 120 canisters. The popcorn company exhibits?

Economics of scale because average total cost is falling as output rises.

A benefit to society of the patent and copyright laws is that those laws?

Encourage creative activity

According to the human capital view, educations

Enhances productivity

Chloe and Guilherme both work at the local factory producing cars. Chloe earns 22 per hour working the day shift and Guilherme earns 25 per hour working the night shift. They have the same job, same experience, and same education. This means that?

Factory is discriminating against Chloe because she is a woman.

Robin owns a horse stable and riding academy and gives riding lessons for children at pony camp.His monthly total revenue is $4000. The marginal cost of pony camp is $250 per child. In order to maximize profits?

Give riding lessons to fewer then 20 kids a month.

Refer to Figure 16-1. Which of the graphs illustrates the demand curve most likely faced by a firm.

Graph b

Economists study poverty and income inequality to answer which of the following questions?

How much inequality is there in society?

Refer to Figure 15-2. If the monopoly firm is currently producing Q4 untils of output, then a decrease in output will necessarily cause profit to?

Increase if the output is between Q3 and Q4

Price discrimination

Is illogical because it does not maximize profit.

Emperical work that does not account for differences in the productivity of workers

Is likely to misinterpret apparent evidence of labor market discrimination

In the parable of the leaky bucket, a fundamental problem with government redistribution programs is identified. As long as the government only has leaky buckets at its disposal?

It should not try to reach complete equality in income.

Refer to FIgure 15-4. What price will the monopolist charge in order to maximize pockets?

K

What happens to the labor supply curves in both countries when Mexican workers leave mexicoand move to the US?

Labor supply increases in the USand decreases in mexico

The firm hires the factor up to the point where the value of the factor's marginal product is equal to the factors price.this applies to which?

Land, Labor and capital

Firms may experience diseconomies of scale when?

Large management structures are beaurocratic and ineffiecient.

A society consists of three individuals.Sam, Tristan and Ulyana. In terms of income and utility sam is currently best off. Tristan ranks in the middle and Ulyana isworst off.

Liberalism suggest that government policies should strive to increase Ulyana's utility.

Because of diminishing returns, a factor in abundant supply has a ?

Low marginal product and a low rental price

Refer to Figure 15-1. The shape of the average total cost curve reveals information about the nature of the barrier to entry that might exist in a monopoly market. Which monopoly type best coincides with the figure?

Natural Monopoly

Which political philosophy believes that the government should equalize the incomes of all members of society?

None of the above

A market structure with only a few sellers, each offering similar or identical products is known as?

Oligopoly

The marginal product of labor is defined as the change in?

Output per additional unit of labor.

Refer to Figure 15-2. A profit maximizing monopolys total revenue is equal to?

P5 x Q3

Refer to Figure 14-7. Assume that the market starts in equilibrium at point W in graph b and that graph a illustrates the cost curves facing individual firms. suppose that demand increases from D0 to D1. Which of the following is not correct?

Point Z is a long run equilibrium point.

Refer to figure 14-3. In the short run, if the market price is P4 individual firms in a competative industry will earn?

Positive profits.

Monopolistic competition is considered inefficient because?

Price exceeds marginal cost.

If one firm left a duopoly market where the firms did not compete then?

Price would rise and quantity will fall.

Refer to Figure 13-1. The graph illustrates a typical

Production function.

Refer to Figure 15-2. Profit can always be increased by increasing the level of output by one unti if the monopolist is currently operating at?

Q1 or Q2 only.

Refer to Figure 15-2. A profit maximizing monopoly will produce an output level of?

Q3

An extradollar of incomegives more additional satisfaction to a poor person than to a rich person. this is an assumption of which political philospohy?

Utilitarianism.

To maximize profit, a competitive firm hires workers up to the point of intersection of the?

Value of marginal product curve and the wage.

When labor supply increases?

Wages decrease as long as labor demand is downward sloping.

A recent law school graduate isconsidering 2 offers to practice law, one in new york, one in Illinois. Assuming all other things are equal the attorney would expect?

Wages in Illinois and Ne wYork to be indetical.

According to the signaling theory of educationbetter educated workers,

are likely to be high ability workers.

In a long run equilibrium,

both a perfectly competitive firm and a monopolistic firmoperate at differnt scales of production.

A change in the supply of one factor of production

can alter the earnings of all the other factors

Because a firms demand for a factor of production is derived from its decision to supply a good in the market it is called a?

derived demand.

In the prisoners dilemma gane, self interest leads,

each prisoner to confess.

If long run average total cost decreases as the quantity of output increases the firm is experienceing?

economies of scale.

An oligopolist will increase production if the output effect is,

greater than the price effect.

Refer to Figure 16-6. The firms maximum profit?

is -2000

Refer to Figure 14-1. The firmshould shut down if the market price is,

less than $6.

Refer to figure 13-2. Curve A is always declining because?

marginal product first decreases, then increases.

A market structure with only a few sellers each offering similair or identical products is knwon as ?

oligopoly

If duopoly firms that are not colluding were able to succesfully collude, then ?

price would rise and quantity would fall

If the government forces this firm to produce at its efficient scale, it will?

produce 5 units and lose $5

The wage is to the labor market as the?

rental price of capital is to the capital market.

The rental price of land is?

the price paid for the flow of services from land oer a specified time period.

After an employee pays the cost of educating a worker, the?

worker might look for another job unless his employer pays him more.