Microeconomics (88%)

The point of maximum profit is the point at which the marginal cost equals the marginal revenue.

production cost.

In the United States, which type of industry is often considered part of an oligopoly? electric companies cell phone carriers mail delivery services denim companies

cell phone carriers

The chart shows the marginal cost of producing apple pies. According to the chart, the marginal cost of producing the second pie is _____.

0.50

Which helps enable an oligopoly to form within a market? Costs of starting a competing business are too high. The government restricts market entry. The number of options in a market confuses consumers. No competition exists between producers.

Costs of starting a competing business are too high.

Why is competition limited in an oligopoly? High entry costs prevent new producers from entering the market. Producers completely refuse to engage in price wars. No major distinctions exist between producers. Producers actively segment the market to avoid competition.

High entry costs prevent new producers from entering the market.

Which statement best describes incentives? Incentives are mostly positive. Incentives are mostly negative. Incentives can be positive or negative. Incentives are neither positive nor negative.

Incentives can be positive or negative.

______ is the type of competition that occurs in a competitive market without identical producers.

Monopolistic

What is the difference between profit and revenue? Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs. Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good. Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs. Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.

Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of purchasing a unit. distributing that unit. producing the next unit. producing a different unit.

producing the next unit.

How might a drop in price for washing machines affect the demand for dryers? The demand for dryers would have no relation to the changing prices of washing machines. The demand for dryers would most likely increase as the price for washing machines dropped. The demand for dryers would most likely decrease as the price for washing machines dropped. The demand for dryers would only be affected by an increase in the price of washing machines.

The demand for dryers would most likely increase as the price for washing machines dropped.

Which best describes the availability of substitutes in a monopoly? Price points vary. There are no substitutes. There are different brands. Products have different features.

There are no substitutes.

On a graph, an equilibrium point is where a supply curve and a demand curve meet. a supply curve is higher than a demand curve. the supply and demand curves head up. the supply and demand curves head down.

a supply curve and a demand curve meet.

According to the law of demand, price and quantity move along a track in the same direction. along a track in opposite directions. from different points toward one another. from the same point away from one another.

along a track in the same direction.

According to the law of supply, price and quantity move along a track in the same direction. along a track in opposite directions. from different points toward one another. from the same point away from one another.

along a track in the same direction.

The Davis family grows organic vegetables to sell at a local farmer's market. Which are factors that directly affect their profit? Check all that apply. an increase in the cost of farm equipment a rise in demand for organic produce an increase in customers at the market a change in the market price for non-organic fruit a sale on organic meats at the market

an increase in the cost of farm equipment a rise in demand for organic produce a change in the market price for non-organic fruit

Clark's Cleaners is a housekeeping service. The company's expenses include the money the company earns after paying all of its production costs. cleaning supplies and any equipment the company purchases. total amount of money the company receives from its customers. amount of money the company earns from an individual cleaning.

cleaning supplies and any equipment the company purchases.

?

corn

To generate higher profits, producers must work to increase their total supply. increase their total expenses. decrease their customer base. decrease their production costs.

decrease their production costs.

The point where supply and demand meet and prices are set is called coordination. correspondence. equality. equilibrium.

equilibrium.

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded? excess supply stable prices exact equilibrium increased production

excess supply

The lack of competition within a monopoly means that offered goods and services are lackluster. the product's market is small. consumers must look elsewhere to find options. monopolists set their own price.

monopolists set their own price.

Producers must understand the marginal benefit of making an additional unit, which shows the actual gain. eventual gain. possible gain. unlikely gain.

possible gain.

Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication? natural monopoly de facto monopoly government monopoly technological monopoly

technological monopoly

The vertical axis of a demand curve shows the price of a product. the supply of a product. the interest in a product. the production cost of a product.

the price of a product.

What is the best definition of marginal cost? the possible income from producing an additional item the price of producing one additional unit of a good the additional income gained from selling an additional good the financial gain from business activity minus expenses

the price of producing one additional unit of a good