Econ Final

Figure: Monopolist If this figure represents the demand and cost curves for a firm with market power, what price should the firm charge to maximize profits? $50 $40 $65 $60

$60

(Figure: Oil) To produce 30 million barrels of oil per day, the minimum price per unit that producers in the diagram require is: $20. $40. $80. $60.

$60.

(Table: Oil Production) Refer to the table. What is the profit of producing 10 barrels of oil? $80 $194 $154 $180

$80

Table: Sunshine Flower Vase Co. Refer to the table. If the market wage for each worker is $100 per day, how many workers will the company hire? 5 7 6 4

6

(Figure: Market Equilibrium) Refer to the figure. At a price of $3, quantity supplied is ______ and quantity demanded is ______, leading to a _______. 4; 2; shortage of 2 units 2; 4; surplus of 2 units 2; 6; shortage of 8 units 6; 2; surplus of 4 units

6; 2; surplus of 4 units

(Figure: Monopolist 3) In this figure, the profit-maximizing monopolist sells: 9 units of output at $20 per unit. 18 units of output at $2 per unit. 16 units of output at $4 per unit. 9 units of output at $11 per unit.

9 units of output at $11 per unit.

Which of the following will result in the least amount of dead weight loss? A monopolist that sets one price for its product A firm that is a perfectly disriminating monopolist A firm that produces where there is the greatest difference between price and marginal cost Microsoft bundling its Office products

A firm that is a perfectly disriminating monopolist

Which group has, on average, the most extensive and valuable benefit packages? Academics Entertainers Medical professsionals Union members

Union members

(Figure: Pineapples 2) Refer to the figure. In the long run, what do you expect this firm's economic profit or loss to be? -$200,000 $600,000 $0 $270,000

$0

Table: Maximum Willingness to Pay The table shows four individuals' maximum willingness to pay for one pound of bananas. If the market price of bananas is $0.50/lb, what is the total consumer surplus in the market? $4.25 $4.00 $2.75 $2.50

$2.50

(Figure: Profit Maximization 5) At a price of $8 in this diagram, profit per unit is approximately ______, and total profit is approximately ______. $2.50; $36 $5.00; $60 $8.00; $114 $5.50; $78 Solved

$2.50; $36

(Figure: Monopolist 3) In this figure, the monopolist's maximum profit is: $36. $54. $99. $45.

$45.

(Figure: Producer Surplus) Refer to the figure. What is the producer surplus at a price of $2 per unit? $10 $20 $5 $6

$5

(Figure: Potatoes) Refer to the figure. If the price of potatoes is $8 a pound, what is the consumer surplus received? $240,000 $30,000 $360,000 $60,000

$240,000

(Figure: Costs of Oil Production) Refer to the figure. Assuming that price equals marginal cost, the total cost of producing eight barrels of oil is: $400. It cannot be determined from the information given. $60. $240.

$240.

(Figure: Profit Maximization 4) At the profit-maximizing level of output in this diagram, the firm's total revenue and total cost are ______ and ______, respectively. $480,000; $840,000 $7; $7 $840,000; $480,000 $700,000; $400,000

$840,000; $480,000

Which of the following is the correct formula for calculating the unemployment rate? (The number unemployed) divided by (The Natural Rate of Employment) (Number Unemployed) divided by (The labor force) (Number Unemployed) divided by (The population over 16) (Number Unemployed) divided by (The labor force participation rate)

(Number Unemployed) divided by (The labor force)

(Figure: Pineapples) Refer to the figure. What is the optimal number of cans of pineapple for this firm to produce? 90,0000 50,000 120,000 160,000

120,000

(Figure: Two-Firm Industry) Refer to the figures. At a market price of $20, the total quantity supplied in the industry is: 45 units. 15 units. 32 units. 25 units.

15 units

Table: Monopolist Refer to the table. What is the monopolist's profit-maximizing level of output? 3 4 6 5

4

In a constant cost industry, the market price and average cost are equal to $23. Therefore, which of the following is correct?An increase in demand will cause profits to rise and firms to enter the industry until profits return to normal.A decrease in demand will cause market price to fall below average cost, and thus firms will earn negative profits.All of the answers are correct.An increase in demand will cause the short-run price to rise above $23, but in the long run, the price will return to $23.

All of the answers are correct.

Which of the following is counted as being in the Labor Force? An unemployed person who is not actively looking for a job A member of the military A full time student with a part-time job An Uber driver who has a PhD in economics

An Uber driver who has a PhD in economics

Which of the following will NOT cause a decrease in the demand for hot dog buns?An increase in the price of hot dog bunsAn increase in income and hot dogs are an inferior goodA decrease in the price of hamburger buns (a substitute for hot dog buns)An increase in the price of hot dogs

An increase in the price of hot dog buns

Figure: Demand Curve Which statement is TRUE regarding the figure? At a price of $3.75 per unit, consumers are indifferent between buying 10 and 15 units. The maximum price demanders are willing to pay for 15 units is $6 per unit. The higher the price, the greater the quantity demanded. At a price of $6 per unit, consumers are willing and able to buy 10 units.

At a price of $6 per unit, consumers are willing and able to buy 10 units.

(Figure: Demand and Supply) Refer to the figure. Which statement is TRUE? A free market is likely to produce less than 12 units of output. Buyers are willing to pay $20 for the 16th unit of output and it costs sellers $60 to produce that unit. The gains from trade are maximized at 20 units of output. At 16 units of output, there are unexploited gains from trade.

Buyers are willing to pay $20 for the 16th unit of output and it costs sellers $60 to produce that unit.

Which of the following statements is TRUE?Bill is willing to pay $10 for a pound of clay. If he buys a pound of clay at a market price per pound of $5, his consumer surplus is $2.Total consumer surplus is represented graphically by the area beneath the demand curve.Total consumer surplus is represented graphically by the area above the demand curve.Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and its market price.

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and its market price.

Consider the market for chicken wings. What happens if incomes increase and wings are an inferior good? Supply increases Supply decreases Demand decreases Demand increases None of the above

Demand decreases

Consider the market for chicken wings. What happens if the price of hot sauce (a complement) increases? Supply increases Demand decreases Demand increases None of the above Supply decreases

Demand decreases

Haircuts for men are often cheaper than haircuts for women, even when they are offered by the same stylist. Why might this be price discrimination? Stylists are misogynists. The marginal cost of supplying a haircut may be lower for male than for female customers, and haircutting is a competitive industry with few fixed costs. Demand for haircuts for women might be more inelastic than demand for haircuts for men, and haircuts are impossible to arbitrage. Everyone has the same demand for haircuts.

Demand for haircuts for women might be more inelastic than demand for haircuts for men, and haircuts are impossible to arbitrage.

Consider the market for chicken wings. What will happen if the price of chicken tenders (a substitute) increases? Supply increases Supply decreases None of the above Demand decreases Demand increases

Demand increases

Suppose there is an increase in demand in a market and no change in the supply. What will happen to the market equilibrium price and quantity?Equilibrium price will rise; equilibrium quantity will rise.Equilibrium price will rise; equilibrium quantity will fall.Equilibrium price will fall; equilibrium quantity will fall.Equilibrium price will fall; equilibrium quantity will rise.

Equilibrium price will rise; equilibrium quantity will rise

b. Which of the outcomes of monopolistically competitive markets is a direct result of its monopoly‑like features?Firms charge a price for their goods that is equal to the average cost of producing a unit of output.Firms produce an efficient level of output.Firms charge a price for their goods that is above the marginal cost of producing another unit of output.Firms earn positive long‑run profits.

Firms charge a price for their goods that is above the marginal cost of producing another unit of output.

Which outcome is a result of its competitive features?Firms charge a price for their goods that is above the marginal cost of producing another unit of output.Firms earn positive long‑run profits.Firms produce an efficient level of output.Firms charge a price for their goods that is equal to the average cost of producing a unit of output.

Firms charge a price for their goods that is equal to the average cost of producing a unit of output.

a. In what ways is a monopolistically competitive market like a monopoly?Firms sell differentiated products, resulting in a downward‑sloping demand curve.There exist significant barriers to entry in such a market.Firms compete "for the market" rather than "in the market".Firms can produce additional output at zero marginal cost.

Firms sell differentiated products, resulting in a downward‑sloping demand curve

Which type of unemployment is considered to be a sign of a healthy and well-functioning economy? Structural Unemployment Frictional Unemployment Cyclical unemployment Participating Unemployment

Frictional Unemployment

Why do we classify McDonald's and Burger King as monopolistic competitors rather than as pure competitors? Isn't a hamburger just a hamburger?McDonald's and Burger King produce at the socially efficient level.McDonald's and Burger King earn economic profits in the long run.Hamburgers at McDonald's and Burger King are somewhat differentiated.Hamburgers at McDonald's and Burger King are no different.

Hamburgers at McDonald's and Burger King are somewhat differentiated

Which of the following would be classified as a monopolistically competitive industry? Hardware stores Agriculture Residential natural gas Aluminum

Hardware stores

Which of the following is an example of "tying" in order to increase profits? Microsoft bundling the products in Microsaoft Office Delta Airlines charging more for first class seats Hewitt-Packard charging a low price on is printers and a high price on printer ink GSK charging more for its medications in Europe than it charges in Africa.

Hewitt-Packard charging a low price on is printers and a high price on printer ink

Which of the following is/are TRUE?I. Advertising embodies both information and persuasion.II. Perfectly competitive firms and monopolistically competitive firms both advertise.III. Oligopolies and monopolistically competitive firms both advertise. I and II only I II and III I and III only I only

I and III only

Workers earn higher wages:I. when the demand for labor rises in an industry.II. the greater the amount of human capital market issues they possess.III. the more dangerous the job they perform. III only II only I, II, and III II and III only

I, II, and III

Which of the following statements is TRUE?I. A cartel is a single firm with competitive market power.II. A cartel is a group of firms that practice price discrimination in competitive markets.III. A cartel is a group of firms that attempt to reduce market output.IV. A cartel acts as if it were a monopolist in that market. III and IV only I only II, III, and IV only II only

III and IV only

What is the surprising conclusion of the prisoner's dilemma? Individuals acting in the pursuit of their own self-interest may not lead to a social outcome that is in the best interest of everyone. Individuals acting in the pursuit of their own self-interest will always lead to a social outcome that is in the best interest of everyone. Individuals acting in the pursuit of their own self-interest will never lead to a social outcome that is in the best interest of everyone. Individuals acting in the pursuit of their own self-interest will always lead to a social outcome that is in the worst interest of everyone.

Individuals acting in the pursuit of their own self-interest may not lead to a social outcome that is in the best interest of everyone.

Increased immigration to New York City increases the supply of labor. Why doesn't it result in lower wages (like an increase supply of apples results in cheaper apples)? Immigrants buy stuff and increase the derived demand for labor The supply curve for labor "Bends Backwards" The labor force participation rate falls It increases the marginal product of labor

It increases the marginal product of labor

(Figure: Costs) Use the figure. At a price of $20, which statement is FALSE? MC < AC AC = $15 Profit = (20 - 15)15 Average profit = $5

MC < AC

What is the profit-maximization condition for a monopolist? MR > MC AR = MC AR = D MR = MC

MR = MC

Consider the market for chicken wings. Which of the following happens if the price of chicken wings increases? Demand increases Supply increases Demand decreases Supply decreases None of the above

None of the above

If the demand for currently illegal recreational drugs is highly inelastic and these drugs became legal, prices would fall. An economist would expect which of the following to happen in response to the lower price?No one would follow the laws of economics anymore.Not many more people would become drug users.Many more people would become drug users.Total spending on drugs would rise.

Not many more people would become drug users.

What happens to the equilibrium price and quantity when demand increases and supply decreases?Quantity increases but the price is indeterminent Price increases but the quantity is indeterminentBoth price and quantity are indeterminentBoth price and quantity increase

Price increases but the quantity is indeterminent

What condition is necessary in a constant cost industry? There are barriers that prevent new firms from entering such an industry. Prices of the industry's inputs decline as the industry expands. Prices of the industry's inputs rise as the industry expands. Prices of the industry's inputs do not change as the industry expands.

Prices of the industry's inputs do not change as the industry expands.

Which of the following represents the nature of a monopolist's deadweight loss? It is a fact that people are willing to spend a lot of money for small improvements in quality. Unlike competitive markets, there are consumers with unsatisfied wants. Some consumers are willing to pay more than the monopolist's marginal cost of production, but the monopolist does not produce these units. It is not possible to equate price with marginal cost when demand is inelastic.

Some consumers are willing to pay more than the monopolist's marginal cost of production, but the monopolist does not produce these units.

In which sector of the economy is union membership growing (or at least holding its own)? Agricultural workers State and local government employees Manufacturing Hospitality industry

State and local government employees

Consider the market for chicken wings What will happen if the price of chicken feed increases? Demand increases Demand decreases Supply increases Supply decreases None of the above

Supply decreases

Conisder the market for chicken wings. What happens if: Poultry scientists breed a chlicken that has 4 wings Demand increases None of the above Supply increases Supply decreases Demand decreases

Supply increases

What causes the demand curve for labor to be "downward sloping"? The backward bending supply of labor The decreasing labor force participation rate The Law of Diminishing Marginal Product The increasing use of technology that is a substitute for labor

The Law of Diminishing Marginal Product

Which of the following poses the biggest threat to well-paid manufacrturing jobs in the US? Cheap foreign labor The decrease in (human) capital investment The increase in technology in manufacturing processes The continual decrease in (physical) capital investment

The increase in technology in manufacturing processes

In what ways is a monopolistically competitive market like competition?Firms all sell their goods at a single market-clearing price.Firms can only compete on price; they cannot compete on product differentiation.There exist many firms in the market, and more firms can enter easily.Firms compete "for the market" rather than "in the market".

There exist many firms in the market, and more firms can enter easily.

(Figure: Maximum Willingness to Pay) Refer to the figure. What is the profit that the monopolist is earning? $10,000 $4,500 $5,500 There is not enough information to answer the question.

There is not enough information to answer the question.

Which of the following occurs when, all else the same, there is an INCREASE in the price of peanut butter?There will be an increase in the demand for jelly and an increase in the supply of jellyThere will be an increase in the demand for jelly and an increase in the quantity of jelly suppliedThere will be a decrease in the demand for jelly and a decrease in the quantity of jelly suppliedThere will be a decrease in the demand for jelly and a decrease in the supply of jelly

There will be a decrease in the demand for jelly and a decrease in the quantity of jelly supplied

A new per unit subsidy for hybrid car production increases the supply of hybrid cars. If hybrid cars are elastically demanded, what will happen to total revenues from hybrid car production?They will change in an indeterminate direction.They will rise.They will remain the same.They will fall.

They will rise

A firm pays a monthly lease of $10,000 and generates $8,000 of revenue a month. Which of the following is TRUE? The recoverable costs are less than operating profit. The recoverable costs are less than the difference between revenues and variable costs. This firm will exit the industry in the long run. Firms will enter the industry.

This firm will exit the industry in the long run.

Wood is used to build houses. All houses have windows. Why do we see advertisements for different window makers but not for different producers of wood?Wood is a differentiated product, windows are not.Advertising about windows is more informative than advertising about wood.Windows are a differentiated product, and wood is not.Advertising about windows costs less than advertising about wood.

Windows are a differentiated product, and wood is not.

Fishermen who go deep-sea crab fishing (e.g., those on The Deadliest Catch) earn: a compensating wage differential. the same wage as all other local fishermen. a college wage premium. the same hourly wages as most other professions.

a compensating wage differential.

When a single firm can supply the entire market at lower cost than two or more firms, we say that the industry is:profit maximizing.a bilateral monopoly.a natural competitor.a natural monopoly.

a natural monopoly.

Which of the following choices contains only factors that cause the supply curve to shift to the right?a fall in tastes and preferences for the product, economic growth, a rise in technologya rise in technology, a fall in the costs of production, a fall in taxes on outputa decrease in taxes on production, a fall in subsidies on production, a rise in costs of productiona fall in production costs, a rise in technology, an increase in taxes on output

a rise in technologya rise in technology, a fall in the costs of production, a fall in taxes on output

Monopolistically competitive firms create: negative deadweight loss. zero deadweight loss. a small deadweight loss. a large deadweight loss.

a small deadweight loss.

The quantity supplied is the:change in the sellers' output multiplied by the change in price.amount of inputs that a firm earns profit on.amount of a good that firms are willing and able to sell at a particular price during a given period of time.incremental cost of producing one more unit of output, holding all other things constant.

amount of a good that firms are willing and able to sell at a particular price during a given period of time.

The United States uses ______ to prevent businesses from engaging in anticompetitive practices. blue laws monetary and fiscal policy fiduciary regulations antitrust laws

antitrust laws

Figure: Monopolist Profits Refer to the figure. Which of the following answers correctly indicates the profit earned by this monopolist at the profit-maximizing quantity? the area (A + B) - MC area A the area A - B the area A + B

area A

The marginal cost curve intersects the average cost curve: on the upward-sloping portion. at its minimum point. on the vertical portion. on the downward-sloping portion.

at its minimum point.

Consumers benefit from advertising: only when they gain information. if the advertising is not persuasive. only when the advertising is being used as a signal. because it leads to lower prices for some products.

because it leads to lower prices for some products.

In general, wages are determined: by the skills of the worker, regardless of the country he or she works in. based on the average wage for all individuals in a particular country. by the skills of the worker and the productivity of the entire economy. based on the average marginal product of labor of workers in similar countries.

by the skills of the worker and the productivity of the entire economy.

Which of the following makes a cartel short-lived? few firms in the cartel cheating stable market demand contracting

cheating

(Figure: Industry Firms) Refer to the figures. This industry is a(n): constant cost industry. decreasing cost industry. quadratic cost industry. increasing cost industry.

constant cost industry.

In an increasing cost industry: costs rise as industry output increases. the long-run supply curve is flat. all firms will earn normal profits in the long run. costs rise as industry output decreases.

costs rise as industry output increases.

(Figure: Demand 1) Refer to the figure. A cartel facing the market in this diagram would try to cause industry output to: increase from 5 to 10. decrease from 6 to 3. decrease from 5 to 2. increase from 3 to 6.

decrease from 6 to 3.

An early frost in the vineyards of Napa Valley would cause a(n):decrease in the supply of wine, increasing price.increase in the demand for wine, increasing price.increase in the supply of wine, decreasing price.decrease in the demand for wine, decreasing price.

decrease in the supply of wine, increasing price

Imagine that millions of refugees move out of country A and into country X. This would cause the demand for housing in country A to _____ and the demand for housing in country X to _____.decrease; increasedecrease; decreaseincrease; increaseincrease; decrease

decrease; increase

As more firms enter a monopolistically competitive market, the individual firm's demand curve: will vary greatly depending on the industry. decreases, shifting to the left. increases, shifting to the right. stays the same.

decreases, shifting to the left.

The future of the US labor force is best characterized by ________ birth rates and _______ labor force participation rates increasing; decreasing decreasing; decreasing decreasing, increasing increasing; increasing

decreasing; decreasing

Figure: Deadweight Loss Refer to the figure. Deadweight loss caused by monopoly pricing is represented by the area: acdf. bcdf. abd. def.

def.

Increases in farm productivity have lowered the prices of many agricultural products. Farm revenues decreased, which implies that the:costs of production stayed the same.costs of production increased.demand for many agricultural products is elastic.demand for many agricultural products is inelastic.

demand for many agricultural products is inelastic.

If people with unusual first names are more likely to commit a crime than people with more popular names and employers use this information to avoid hiring people with unusual first names, they are practicing: employer privilege. discrimination. due-diligence discrimination. racism.

discrimination.

The oil industry is an increasing cost industry because: All of these statements are correct. because oil is a necessity good. expanding output requires firms to use more expensive production methods to find and extract oil from less desirable locations. people buy more oil at lower prices.

expanding output requires firms to use more expensive production methods to find and extract oil from less desirable locations.

Which of the following would cause the demand for hot dog buns to increase?a fall in the price of hot dogsa rise in the price of hot dogsa fall in the price of hot dog bunsa rise in the price of hot dog buns

fall in the price of hot dogs

The demand curve for oil is inelastic, meaning that the quantity of oil demanded:rises by a lot even when the price of oil increases by only a little.falls by a lot even when the price of oil increases by only a little.rises by only a little even when the price of oil increases by a lot.falls by only a little even when the price of oil increases by a lot.

falls by only a little even when the price of oil increases by a lot.

Which type of firms are more likely to advertise? monopoly firms firms with differentiated products perfectly competitive firms firms with undifferentiated products

firms with differentiated products

Firms are profitable when price is: equal to average cost. greater than average cost. zero. less than average cost.

greater than average cost.

A firm is willing to hire a worker when the marginal product of labor is:greater than the wage.equal to or less than the wage.less than the wage.efficient.

greater than the wage

A cartel is a: group of suppliers that tries to act as if they were a perfectly competitive market. group of suppliers that tries to act as if they were a monopoly. market that is dominated by a small number of firms. market with a large number of firms selling similar but not identical products.

group of suppliers that tries to act as if they were a monopoly.

One way that has been suggested to eliminate deadweight loss from monopoly power without reducing incentives to innovation is to: have government pay monopolists to acquire the patent rights. have government pay monopolists to reduce their output. require that the patent-owners allow competitors to use their innovations. have government eliminate the patent system.

have government pay monopolists to acquire the patent rights.

The more inelastic the demand curve for a product is, the: smaller is the monopolist's price markup. less chance monopolists will have to earn above-normal profits. higher is the monopolist's price markup. more responsive buyers are to a change in the price.

higher is the monopolist's price markup.

European countries have _____________ unemployment rates than the US partly because they have __________ unemployment benefits lower; lower higher; lower higher; higher lower; higher

higher; higher

Which of the following is NOT a source of monopoly power? innovation laws preventing entry of competitors inelastic demand for the product economies of scale

inelastic demand for the product

A firm earning zero economic profits: will shut down immediately. is earning just "normal profits." may continue to operate in the short run but will always shut down in the long run if zero economic profits continue. will not be earning enough to cover all payments to capital and labor.

is earning just "normal profits."

Quantity demanded:shows how much buyers are willing and able to buy at different prices.is the amount that buyers are willing and able to buy at a particular price.is the amount that sellers are willing and able to sell at a particular price.shows how much sellers are willing and able to sell at different prices.

is the amount that buyers are willing and able to buy at a particular price.

Firms earn negative profit when price is: less than average cost. equal to average cost. zero. greater than average cost.

less than average cost.

Oligopolies tend to set prices: higher than cartels. that equal marginal cost. higher than monopolies. lower than monopolies but higher than competitive markets.

lower than monopolies but higher than competitive markets.

Firms operating in a cartel have a large incentive to cheat on the agreement by: raising prices and lowering production. raising prices and increasing production. lowering both prices and production. lowering prices and increasing production.

lowering prices and increasing production.

Monopolistic competition in a market is characterized by: several firms, inelastic demand curves, and long-run monopoly profit. many firms, perfectly elastic demand curves, and zero economic profit in the long run. many firms, downward-sloping demand curves, and zero economic profit in the long run. several dominant firms, perfectly elastic demand curves, and above-normal profits.

many firms, downward-sloping demand curves, and zero economic profit in the long run.

A monopolistic competitor wishing to maximize profit will select a quantity wheremarginal cost equals average cost.marginal revenue equals average cost.marginal revenue equals marginal cost.marginal cost equals demand. If a firm is producing a quantity where marginal revenue exceeds marginal costs, the firm should expand existing levels of production in order to increase profitability .

marginal revenue equals marginal cost. expand increase profitability

In the short run, if price is less than average cost, a firm: might shut down, but might stay open. is earning normal profits. is earning positive profits. will certainly shut down.

might shut down, but might stay open.

The quantity of DVDs that people plan to buy this month will increase when:the price of DVD players increases.cable television prices decrease.movie theater ticket prices increase.the price of movies for download decreases.

movie theater ticket prices increase

Suppose that being an accountant and being a musician require similar amounts of skills, education, training, and so forth. If accountants are paid higher wages than musicians, the supply of: musicians would increase and the supply of accountants would decrease. both musicians and accountants would decrease. both musicians and accountants would increase. musicians would decrease and the supply of accountants would increase.

musicians would decrease and the supply of accountants would increase.

The most important determinant of the elasticity of demand is the:number of substitutes.size of the population.level of income in the economy.number of consumers.

number of substitutes

The difference between the market price and the minimum price at which a seller is willing to sell a certain quantity of a good is:consumer surplus.producer surplus.consumer shortage.producer shortage.

producer surplus

(Figure: Price Adjustment) Refer to the figure. If the price of the product is $14, there is a: shortage of 30 units of the product, and the price will rise to $16. surplus of 40 units of the product, and the price will rise to $16. shortage of 50 units of the product, and the price will rise to $16. surplus of 20 units of the product, and the price will rise to $16.

shortage of 50 units of the product, and the price will rise to $16.

The demand curve:shows how much sellers are willing and able to sell at different prices.is the amount that sellers are willing and able to sell at a particular price.shows how much buyers are willing and able to buy at different prices.is the amount that buyers are willing and able to buy at a particular price.

shows how much buyers are willing and able to buy at different prices

When a pharmaceutical company discovers a new drug, patent law gives it market power by guaranteeing: sole ownership of the right to sell the drug for an unlimited number of years. sole ownership of the right to sell the drug for a limited number of years. partial ownership of the right to sell the drug for a limited number of years. partial ownership of the right to sell the drug for an unlimited number of years.

sole ownership of the right to sell the drug for a limited number of years.

The individual supply curve for labor: slopes up. slopes down. starts sloping up and then bends back as wages rise. is flat.

starts sloping up and then bends back as wages rise.

A firm with no competitors: still faces a downward-sloping demand curve. faces a perfectly inelastic demand curve. faces a perfectly elastic demand curve. has a perfectly elastic supply curve.

still faces a downward-sloping demand curve.

A technological innovation in the production of golf balls increases ______, causing the price to ______ and the ______.supply; fall; quantity demanded to increasethe quantity supplied; fall; quantity demanded to increasesupply; fall; demand to increasesupply; rise; demand to decrease

supply; fall; quantity demanded to increase

An increase in demand causes a:temporary surplus at the old equilibrium price and a lower equilibrium price and quantity.permanent shortage, leaving the equilibrium price and quantity unchanged.temporary shortage at the old equilibrium price and a higher new equilibrium price and quantity.temporary shortage at the old equilibrium price, a higher new equilibrium price, and a lower new equilibrium quantity.

temporary shortage at the old equilibrium price and a higher new equilibrium price and quantity

The price of wheat increases, but few people cut back on their consumption of bread because:the price of bread is a large portion of the budget, and thus the demand for bread is elastic.the price of bread is a small portion of the budget, and thus the demand for bread is inelastic.a change in the price of wheat does not affect the price of bread.None of the answers is correct.

the price of bread is a small portion of the budget, and thus the demand for bread is inelastic

Aside from your skills and how hard you work, what does your marginal product of labor reflect? nothing the productivity of everyone else in your economy your chance of death on the job your supply of labor

the productivity of everyone else in your economy

My Attempt The prisoner's dilemma refers to a situation in which:firms are forced into illegal activities for the good of the group.cheating is the only profitable strategy.the pursuit of individual interests leads to illegal actions.the pursuit of individual interests leads to an outcome that is in the best interest of no one.

the pursuit of individual interests leads to an outcome that is in the best interest of no one.

Price discrimination is defined as selling: different products at different prices to the same customers. the same product at different prices to different customers. the same products at the same prices to the same customers. different products at the same prices to different customers.

the same product at different prices to different customers.

At the profit-maximizing output level P = MC, if P > AC then firms can earn above-normal profit, causing entry into the industry.TrueFalse

true

Statistical discrimination is: always malicious. using information about group averages to make conclusions about individuals. a tool that economists use to determine the significance of statistical regressions. the illegal practice of judging someone because of their characteristics.

using information about group averages to make conclusions about individuals.

When comparing a monopoly with a competitive industry, monopoly quantity: will be higher, and monopoly price will be lower, than that of a competitive firm. and monopoly price will be lower than that of a competitive firm. and monopoly price will be higher than that of a competitive firm. will be lower, and monopoly price will be higher, than that of a competitive firm.

will be lower, and monopoly price will be higher, than that of a competitive firm.