Iowa State Econ 101 midterm 3
42. A Japanese steel firm sells steel in the United States and in Japan. Since the United States buys steel from a number of sources, the U.S. demand for Japanese steel is more price-elastic than the Japanese demand for Japanese steel. If the Japanese steel firm wishes to maximize its profits, it should: A) charge the same price in both countries (after adjusting for transportation costs). B) charge a higher price in the United States and a lower price in Japan; otherwise it would be accused of unfair trade practices. C) charge a lower price in the United States and a higher price in Japan. D) figure out which market is more profitable and sell only in that market.
C
43. Economic profits in a perfectly competitive industry encourage firms to _____ the industry, and losses encourage firms to _____ the industry. A) exit; enter B) enter; enter C) enter; exit D) exit; exit
C
46. A curve that shows the quantity of a good or service supplied at various prices after all long-run adjustments to a price change have been completed is a long-run _____ curve. A) marginal revenue B) marginal cost C) industry supply D) production
C
49. A perfectly competitive industry is said to be efficient because the: A) marginal cost of production of the last unit of output is minimized. B) product is standardized across firms in the industry. C) average total cost of production of the industry's output is minimized. D) market price of the good is equal to economic profit for all firms in the industry.
C
8. Suppose a local floral shop has explicit costs of $200,000 per year and implicit costs of $50,000 per year. If the store earned an economic profit of $50,000 last year, the store's accounting profit equaled: A) $10,000. B) $50,000. C) $100,000. D) $200,000.
C
8. The ability of a monopolist to raise the price of a product above the competitive level by reducing the output is known as: A) product differentiation. B) barrier to entry. C) market power. D) patents and copyrights.
C
9. Suppose that you build a high-speed, magnetically powered transportation system from New York to Los Angeles, and you are the only firm providing this service. High fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand. Your monopoly would result from: A) control of a scarce resource or input. B) technological superiority. C) increasing returns to scale. D) government-set barriers.
C
30. Which of the following statements about monopoly equilibrium and perfectly competitive equilibrium is INCORRECT? A) Price is greater than marginal cost in monopoly, and price equals marginal cost in perfect competition. B) When a monopoly exists, the consumer surplus is less than if the market were perfectly competitive. C) Monopoly output will be less than the output of a comparable perfectly competitive industry. D) In the long run, economic profits are driven to zero in both a monopoly and a perfectly competitive market.
D
40. The municipal swimming pool charges lower entrance fees to local residents than to nonresidents. Assuming that this pricing strategy increases the profits of the pool, we can conclude that nonresidents must have a _____ demand for swimming at the pool than residents. A) greater B) lower C) more elastic D) less elastic
D
47. Which of the following is MOST likely to cause firms to exit a perfectly competitive industry? A) Consumer tastes and preferences for this product get stronger. B) A technological advance allows all firms to produce more efficiently. C) The price of a key variable input falls. D) Consumer income falls.
D
7. If you had a license for the exclusive right to sell breakfast bagels in your community, your monopoly would result from: A) control of a scarce resource or input. B) technological superiority. C) increasing returns to scale. D) government-set barriers.
D
12. If a perfectly competitive gardening shop sells 30 evergreen bushes at $10 per bush, its marginal revenue is: A) $10. B) more than $10. C) less than $10. D) $300.
A
13. Conditions that keep new firms out of a monopoly market are: A) barriers to entry. B) terms of sale. C) labor market stipulations. D) production controls.
A
14. A perfectly competitive firm will maximize profits when the: A) marginal revenue equals marginal cost. B) marginal revenue is lower than average variable cost. C) price is lower than marginal cost. D) price is higher than marginal cost.
A
16. Natural monopolies are likely to include all of the following EXCEPT: A) a diamond mining company. B) a gas company. C) an electricity company. D) railways.
A
18. The large barriers to entry are a reason a monopoly: A) earns an economic profit in the long run. B) produces at the minimum average total cost in the long run. C) produces with no fixed costs in the long run. D) maximizes its profits by producing where P = MC.
A
20. Mikail's perfectly competitive camera memory card-producing factory is making positive economic profits. If the price of memory cards is $9, if Mikail's output is 3,000 cards a month, and if his monthly average total cost is $7, what are his monthly profits? A) $6,000 B) $27,000 C) $21,000 D) $2
A
20. Wendy has a monopoly in the retailing of motor homes. She can sell five per week at $21,000 each. If she wants to sell six, she can charge only $20,000 each. The quantity effect of selling the sixth motor home is: A) $20,000. B) $10,000. C) $15,000. D) $21,000.
A
22. Zoe's Bakery determines that P < ATC and P > AVC. In the short run, Zoe should: A) continue to operate even though she is taking an economic loss. B) continue to operate, as she is making an economic profit. C) shut down immediately, as she is taking an economic loss. D) raise the price until she has maximized her profits.
A
23. One of the major differences between a monopolist and a purely competitive firm is that the monopolist has a _____ demand curve, while the purely competitive firm has a _____ demand curve. A) downward-sloping; perfectly elastic B) perfectly inelastic; perfectly elastic C) downward-sloping; perfectly inelastic D) perfectly elastic; downward-sloping
A
24. The demand curve facing a monopolist is: A) downward-sloping. B) vertical. C) horizontal. D) upward-sloping.
A
26. A monopolist responds to an increase in marginal cost by _____ price and _____ output. A) increasing; decreasing B) increasing; increasing C) decreasing; increasing D) decreasing; decreasing
A
28. Which of the following is TRUE? A) If price falls below average variable cost, the firm will shut down in the short run. B) Total revenue and marginal revenue are the same in perfect competition. C) Economic profit per unit is found by subtracting MC from price. D) Economic profit is always positive in the long run.
A
3. A monopoly: A) produces a product with no close substitutes. B) is composed of a single buyer and several sellers. C) is composed of a large number of small firms. D) is composed of a small number of large firms.
A
3. After earning your BA, you have to decide whether to take a job that will pay you $45,000 per year or spend an additional two years earning an MBA. If you decide to pursue the graduate degree, your annual expenses for tuition, books, board, and lodging will be $32,000. You have been offered a scholarship for $10,000 per year, but to pay the remaining $22,000 per year, you would have to cash in savings bonds from your grandparents that have been earning $500 in interest per year. The annual opportunity cost of earning your MBA is: A) $67,500. B) $77,000. C) $99,000. D) $77,500.
A
30. (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $14, in the short run, the farmer will produce _____ of corn and earn an economic _____ equal to _____. A) 4 bushels; profit; $0 B) 4 bushels; profit; just less than $80 per bushel C) 2 bushels; profit; $0 D) 2 bushels; loss; just more than $80 per bushel
A
32. (Figure: Demand, Revenue, and Cost Curves) Look at the figure Demand, Revenue, and Cost Curves. Figglenuts-R-Us is a monopolist in the figglenut market. If the government wanted to regulate Figglenuts-R-Us such that the entire deadweight loss would be eliminated in the short run, it would impose a price ceiling of: A) $40. B) $46. C) $50. D) $65.
A
34. A monopolist or an imperfectly competitive firm practices price discrimination primarily to: A) increase profits. B) expand plant size. C) lower total costs. D) reduce marginal costs.
A
36. Price discrimination leads to a _____ price for consumers with a _____ demand. A) higher; less elastic B) higher; more elastic C) higher; perfectly elastic D) lower; less elastic
A
37. Because business travelers' demand for airline flights is relatively _____, small increases in price will result in relatively _____ decreases in additional business travelers. A) price-inelastic; small B) price-elastic; large C) price-inelastic; large D) price-elastic; small
A
39. Which of the following is NOT an example of price discrimination? A) a Fourth of July sale B) a coupon in the newspaper offering a 10% discount on a product C) a higher price for front row seats at a concert than for seats at the back D) a lower price charged to the grandfather who bought his airline ticket to Chicago three weeks in advance and will stay over a Saturday night than to the businesswoman who bought her ticket the day of the flight and will not stay over Saturday night
A
40. (Table: Soybean Cost) Look at the table Soybean Cost. What is the shut-down price for this farmer? A) $10 B) $11 C) $12 D) $13
A
41. A community college charges lower tuition fees to town residents than to nonresidents. This pricing strategy increases the profits of the community college. Using this information, we can conclude that nonresidents must have a _____ demand for attending the community college than residents. A) less price-elastic B) greater C) lower D) more price-elastic
A
41. In perfect competition, the assumption of easy entry and exit implies that in the _____ run all firms in the industry will earn _____ economic profits. A) long; zero B) short; positive C) short; zero D) long; positive
A
43. Suppose the elasticity of demand for tickets to Broadway shows is 2.0 for men and 0.3 for women. To use price discrimination to increase profits, the producers should charge lower prices to _____ A) men; elastic B) men; inelastic C) women; elastic D) women; inelastic because their demand is _____.
A
44. Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, the typical firm is likely to: A) earn an economic profit. B) incur an economic loss. C) have no change in its economic profit. D) have neither an economic profit nor an economic loss.
A
5. De Beers became a monopoly by: A) establishing control over diamond mines. B) use of economies of scale. C) use of technological superiority. D) ownership of a patent.
A
5. Sarah's accountant tells her that she made a profit of $43,002 running a pottery studio in Orlando. Sarah's husband, an economist, claims Sarah lost $43,002 running her pottery studio. This means her husband is claiming that she incurred _____ in _____ costs. A) $86,004; implicit B) $43,002; implicit C) $43,002; explicit D) $86,004; explicit
A
9. Economic profit is: A) less than accounting profit if implicit costs exist. B) always equal to accounting profit. C) greater than accounting profit if implicit costs exist. D) less than accounting profit if implicit costs are zero.
A
Use the following to answer question 29: Figure: Costs and Profits for Tomato Producers 29. (Figure: Costs and Profits for Tomato Producers) Look at the figure Costs and Profits for Tomato Producers. The market for tomatoes is perfectly competitive. The market price of a bushel of tomatoes is $18. If the market price increases to $20, the farmer's marginal revenue _____ and the profit-maximizing output _____. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
A
10. Most electric, gas, and water companies are examples of: A) unregulated monopolies. B) natural monopolies. C) restricted-input monopolies. D) sunk-cost monopolies.
B
11. Marginal revenue: A) is the slope of the average revenue curve. B) equals the market price in perfect competition. C) is the change in quantity divided by the change in total revenue. D) is the price divided by the change in quantity.
B
17. If the price is greater than average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will: A) produce at a loss. B) produce at a profit. C) shut down production. D) produce more than the profit-maximizing quantity.
B
18. In the short run, a perfectly competitive firm produces output and earns ZERO economic profit if: A) P<ATC. B) P=ATC. C) P<MC. D) P>ATC.
B
19. Which of the following is TRUE? A) Profit per unit is price minus MC. B) Total economic profit is per-unit profit times quantity. C) If price is less than ATC, the firm will break even in the short run. D) If price is less than marginal cost, the perfectly competitive firm should raise the price and increase output.
B
25. A monopolist responds to an increase in demand by _____ price and _____ output. A) increasing; decreasing B) increasing; increasing C) decreasing; increasing D) decreasing; decreasing
B
25. During the summer, Alex runs a mowing service, and lawn mowing is a perfectly competitive industry. In the short run, Alex will shut down if: A) the total revenues can't cover fixed costs. B) the total revenues can't cover variable costs. C) the total revenues can't cover total costs. D) the price exceeds the average total cost.
B
27. (Figure: A Profit-Maximizing Monopoly Firm) Look at the figure A Profit-Maximizing Monopoly Firm. This firm's profit per unit is: A) $5. B) $12. C) $15. D) $20.
B
27. The lowest point on a perfectly competitive firm's short-run supply curve corresponds to the minimum point on the _____ curve. A) ATC B) AVC C) AFC D) MC
B
29. (Table: Demand and Total Cost) Look at the table Demand and Total Cost. Lenoia runs a natural monopoly firm producing electricity for a small mountain village. The table shows Lenoia's demand and total cost of producing electricity. To maximize profits, Lenoia should charge a price of: A) $350. B) $400. C) $450. D) $500.
B
31. (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $4, in the short run the farmer will produce _____ bushels of corn and earn an economic _____ equal to _____. A) 0; loss; average fixed costs B) 0; loss; total fixed costs C) 3; loss; $30 per bushel D) 3; profit; $20 per bushel
B
34. (Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is P4, the firm will produce quantity _____ and _____ in the short run. A) q1; break even B) q3; make a profit C) q4; break even D) q5; lose fixed costs
B
35. One government policy for dealing with natural monopoly is to: A) impose a price floor to eliminate the deadweight loss. B) impose a price ceiling to reduce economic profit. C) break it up into smaller firms. D) impose fines on the monopolist.
B
36. (Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is P4: A) firms will leave the industry and the price will fall in the long run. B) there will be economic profits and firms will enter the industry in the long run. C) the market supply curve will shift to the left and price will fall in the long run. D) the firm will produce q4.
B
37. (Table: Soybean Cost) Look at the table Soybean Cost. If the market price of a bushel of soybeans is $15, how many bushels will the farmer produce to maximize short-run profit? A) 2 B) 5 C) 3 D) 7
B
38. If the government allowed only one airline to serve the entire U.S. market, there would be a _____ loss associated with _____ efficiency in the airline industry. A) marginal; reduced B) deadweight; reduced C) total; increased D) deadweight; increased
B
39. (Table: Soybean Cost) Look at the table Soybean Cost. What is the break-even price for this farmer? A) $13.00 B) $13.50 C) $14.00 D) $14.50
B
4. Which of the following statements concerning monopoly is TRUE? A) Monopoly firms are always larger than perfectly competitive firms. B) A monopoly has no rivals. C) Barriers to entry do not prevent other firms from entering a monopolized industry. D) Monopolists produce more output than a competitive market with the same demand and cost structure.
B
4. You own a small deli that sells sandwiches, salads, and soup. Which of the following is an implicit cost of the business? A) wages paid to part-time employees B) the job offer you did not accept at a local catering service C) bread, meat, and vegetables used to produce the items on your menu D) your monthly utility bill
B
42. If firms are making positive economic profits in the short run, then in the long run: A) the short-run industry supply curve will shift leftward. B) firms will enter the industry. C) industry output will rise and the price will rise. D) firms will leave the industry.
B
45. Suppose that the market for haircuts in a community is a perfectly competitive constant-cost industry and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the long run, firms will _____ the market, driving the price of haircuts _____ and the profits of individual firms _____. A) enter; up; back to zero B) enter; down; back to zero C) leave; up; up D) leave; up; back to zero
B
48. In perfectly competitive long-run equilibrium: A) all firms make positive economic profits. B) all firms produce at the minimum point of their average total cost curves. C) the industry supply curve must be upward-sloping. D) all firms face the same price, but the value of marginal cost will vary directly with firm size.
B
6. A monopolist is likely to produce _____ and charge _____ than a comparable perfectly competitive firm. A) more; more B) less; more C) more; less D) less; less
B
6. If the accounting profit for a firm is negative: A) the economic profit must be positive. B) the economic profit must be negative. C) the firm should produce more. D) the firm will not owe any taxes.
B
7. Profit computed without implicit costs is _____ profit. A) explicit B) accounting C) implicit D) economic
B
1. Jacquelyn is a student at a major state university. Which of the following is NOT an explicit cost of her attending college? A) tuition B) textbooks C) the salary that she could have earned working full-time D) computer lab fees
C
1. Market structures are categorized by: A) the number and size of the firms. B) whether products are differentiated and the extent of advertising. C) the number of firms and whether products are differentiated. D) the size of the firms and the extent of advertising.
C
11. In contrast with perfect competition, a monopolist: A) produces more at a lower price. B) produces where MR > MC, and a perfectly competitively firm produces where P = MC. C) may have economic profits in the long run. D) earns zero economic profits in the long run.
C
14. A natural monopoly exists whenever a single firm: A) is owned and operated by the government. B) is investor owned but has been granted the exclusive right by the government to operate in a market. C) has economies of scale over the entire range of production that is relevant to its market. D) has gained control over a strategic input of an important production process.
C
15. Suppose that you build a new jumbo jet that can carry five times more passengers than any other competitor. You have high fixed costs due to the quantity of capital used to build the jets, and average cost is decreasing for all levels of demand. In this case, your monopoly would result from: A) sunk costs. B) location. C) economies of scale. D) government restrictions.
C
15. The equilibrium price of a guidebook is $35 in the perfectly competitive guidebook industry. Our firm produces 10,000 guidebooks for an average total cost of $38, marginal cost of $30, and average variable cost of $30. Our firm should: A) raise the price of guidebooks, because the firm is losing money. B) keep output the same, because the firm is producing at minimum average variable cost. C) produce more guidebooks, because the next guidebook produced increases profit by $5. D) shut down, because the firm is losing money.
C
19. Which of the following is TRUE? A) A monopoly firm is a price taker. B) MR > P if the demand curve is downward-sloping. C) MR = MC is a profit-maximizing rule for any firm. D) In monopoly P = MC when profits are maximized.
C
21. Wendy has a monopoly in the retailing of motor homes. She can sell five per week at $21,000 each. If she wants to sell six, she can only charge $20,000 each. The price effect of selling the sixth motor home is: A) $20,000. B) -$15,000. C) -$5,000. D) $25,000.
C
24. A perfectly competitive small organic farm produces 1,000 cauliflower heads in the short run. Its ATC = $6 and AFC = $2. The market price is $3 per head and is equal to MC. To maximize profits or minimize losses, this farm should: A) increase output. B) reduce output but continue to produce. C) shut down. D) do nothing; the firm is already maximizing profits.
C
26. The short-run supply curve for a perfectly competitive firm is its: A) demand curve above its marginal revenue curve. B) marginal revenue curve to the right of its marginal cost curve. C) marginal cost curve above its average variable cost curve. D) average total cost curve below its marginal cost curve.
C
31. (Figure: PPV) Look at the figure PPV, which shows the demand and marginal revenue for a pay-per-view football game on cable TV. Assume that the marginal cost and average cost are a constant $20. If the cable company is a monopoly, how much is deadweight loss when the monopolist maximizes profit? A) $0 B) $20 C) $80 D) $160
C
32. (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, then in the short run the farmer will produce _____ bushels of corn and take an economic loss equal to _____. A) 0; average fixed costs B) 0; total variable costs C) 3; total fixed costs D) 3; $22 per bushel
C
33. (Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is P3, the firm will produce quantity _____ and _____ in the short run. A) q2; make a profit B) q1; break even C) q2; incur a loss D) q4; incur a loss
C
33. Which of the following is TRUE? A) Monopolies produce too much and charge too much from the standpoint of efficiency. B) Monopolies usually are economically efficient because they have economic profits with which to work. C) Monopolies produce too little and charge too much from the standpoint of efficiency. D) Monopolies cause an efficiency problem but are not associated with a deadweight loss.
C
35. (Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is less than P2, the firm will _____ in the short run. A) produce q1 and break even B) produce q1 and incur a loss C) shut down D) produce q3 and make a profit
C
38. (Table: Soybean Cost) Look at the table Soybean Cost. If the market price of a bushel of soybeans is $15, what will be the farmer's short-run maximum profit? A) $75 B) $69 C) $6 D) $5
C
12. You own a lemonade stand in a competitive market, and as such, you are a price-taking firm. Which of the following events would most likely increase your market power? A) The government abolishes the system of patents and copyrights. B) A booming economy increases the demand for lemonade and attracts entry into the market. C) The average total cost curve for firms in the industry is horizontal. D) You own exclusive rights to harvest lemons from all domestic citrus orchards.
D
13. Marginal revenue is a firm's: A) ratio of profit to quantity. B) ratio of average revenue to quantity. C) price per unit times the number of units sold. D) increase in total revenue when it sells an additional unit of output.
D
16. Zoe's Bakery operates in a perfectly competitive industry and has standard cost curves. The variable costs at Zoe's Bakery increase, so all of the cost curves (except fixed cost) shift upward. The demand for Zoe's pastries does not change, nor does the firm shut down. To maximize profits after the variable cost increase, Zoe's Bakery will _____ its price and _____ its level of production. A) raise; increase B) decrease; increase C) raise; decrease D) do nothing to; decrease
D
17. Which of the following is (are) barrier(s) to entry? A) control of scarce resources B) economies of scale C) patents and copyrights D) control of scarce resources, economies of scale, and patents and copyrights
D
2. Which of the following statements about opportunity cost is FALSE? A) Opportunity cost may be larger than monetary cost. B) Opportunity cost includes both explicit and implicit costs. C) The real or opportunity cost of something is what you must give up to get it. D) Opportunity cost is synonymous with explicit cost.
D
2. Which of the following statements about the differences between monopoly and perfect competition is INCORRECT? A) A monopolist has market power, while a perfect competitor does not. B) Unlike a perfectly competitive firm, a monopoly can make positive economic profits in the long run. C) A monopoly will charge a higher price and produce a smaller quantity than a competitive market with the same demand and cost structure. D) Monopoly profits can continue in the long run because the monopoly produces more and charges a higher price than a comparable perfectly competitive industry.
D
21. The break-even price for a perfectly competitive firm is equal to: A) the minimum value of average variable cost. B) the marginal revenue, provided that marginal revenue is equal to marginal cost. C) the average fixed cost at the given output level. D) the minimum value of average total cost.
D
22. Mr. Porter sells 10 bottles of champagne per week at $50 per bottle. He can sell 11 bottles per week if he lowers the price to $45 per bottle. The quantity and the price effects on total revenue would be, respectively, an increase of _____. A) $450; $500 B) $495; $550 C) $45; $5 D) $45; $50
D
23. Consider a perfectly competitive firm in the short run. Assume that it is sustaining economic losses but continues to produce at the profit-maximizing (loss-minimizing) output. Which statement is FALSE? A) Marginal cost is less than average total cost. B) Marginal cost is equal to marginal revenue. C) Price is equal to marginal cost. D) Marginal cost is less than average variable cost.
D
28. (Table: Prices and Demand) Look at the table Prices and Demand. Professor Dumbledore has a monopoly on magic hats. The marginal cost of producing a hat is $18. Suppose Dumbledore can perfectly price-discriminate. How many hats will he produce? A) 3 B) 4 C) 5 D) 6
D
4. Which of the following is NOT a characteristic of a perfectly competitive industry?
Products are differentiated.
5. Which of the following statements is NOT characteristic of perfect competition? A) All firms produce the same standardized product. B) There are many producers, and each has only a small market share. C) There are many producers; one firm has a 25% market share, and all of the remaining firms have a market share of less than 2% each. D) There are no obstacles to entry into or exit from the industry.
There are many producers; one firm has a 25% market share, and all of the remaining firms have a market share of less than 2% each.
8. People in the eastern part of Beirut are prevented by border guards from traveling to the western part of Beirut to shop for or sell food. This situation violates the perfect competition assumption of:
ease of entry and exit
1. In the model of perfect competition:
no individual or firm has enough power to affect price.
10. The demand curve for a perfectly competitive firm is:
perfectly elastic
2. A perfectly competitive firm is a:
price taker
3. If a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a _____ share of the market, and consumers will consider her strawberries and her competitors' strawberries to be _____. Therefore, _____ advertising will take place in this market.
small; standardized; little or no
6. The perfectly competitive model assumes all of the following EXCEPT: A) a great number of buyers. B) easy entry to and exit from the market. C) a standardized product. D) that firms attempt to maximize their total revenue.
that firms attempt to maximize their total revenue.
9. In a perfectly competitive industry, the market demand curve is usually:
downward-sloping