Prin Agri Micro Exam 1 Practice

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

If the market price for an ICU2​ monitor, whose demand curve is shown​ above, is set at $150​, then consumer surplus is ​$_____ billion. ​(Enter your response rounded to three decimal​ places.)

3.375

What is meant by holding all else equal and how is this concept used when discussing movements along the demand​ curve? We make the assumption of holding all else equal when considering demand curves since we want to focus on the changes in the quantity demanded that result from changes in _____.

All variables that can affect the demand for the good are held constant. Only the price of a good.

Which of the following is not one of the three conditions that characterizes a perfectly competitive​ market?

Firms have pricing power and can set their prices freely.

Are all markets perfectly​ competitive?

No, there are other market types where firms have considerable power to control the price.

Which change causes a movement along the demand​ curve?

Price of the good itself

Suppose there is an increase in demand for public transportation because of an increase in the price of automobiles. Which of the following is a possible reason for this elastic demand for​ automobiles? ​(Check all that apply.​) An increase in a fuel tax would cause _____ in demand for​ automobiles, and the​ cross-price elasticity would be _____.

There is a close availability of substitutes for automobiles, A large share of a​ consumer's budget is spent on automobiles a decrease, negative

Which of the following is common between the supply schedule and the supply​ curve? Mary is a producer of water bottles. When the price is​ $10 per​ bottle, she supplies 100 bottles. If the price falls to $7, she will _____ the quantity supplied to _____ bottles. If the price rises to $15, she will _____ the quantity supplied to _____ bottles. The supply curve has a _____ slope. Which of the following statements is true if the supply curve is curve shaped ​(non-​linear)?

They give information about the quantity supplied at different prices. decrease, 70 increase, 150 positive It is difficult to expand production the higher the quantity supplied.

Consider a good that you do not like at​ all, perhaps turnips. Given the market price for​ turnips, what would be your consumer​ surplus?

Zero, since not liking turnips at all implies an unwillingness to pay anything.

While at a​ Subway® in your​ neighborhood, you notice that a single employee completes an​ order, right from helping you choose your​ bread, veggies, and meat to making your sub the way you want it.​ However, over at Pizza​ Hut®, each task in a pizza order is completed by a different worker. Why do you think Subway and Pizza Hut have chosen these different ways to produce​ meals? Pizza production is mostly​ standardized, so Pizza Hut _____ take advantage of specialization and the division of​ labor, while sandwich production is more customized so Subway _____ take advantage of specialization and the division of labor.

can, cannot

A firm is producing goods in a market where the market price is less than the​ firm's average total cost but greater than its average variable cost. At this point the firm​ should:

continue to operate at a loss.

An​ individual's willingness to pay measured over different quantities of the same good define the ____ .If the retail price of the good​ increases, the _____ will​ decrease, all other things constant.

demand curve, quantity demanded

Which of the following criteria would most likely influence an optimizing​ buyer's purchasing​ decisions?

highest marginal benefit per dollar spent

For​ economists, the​ "buyer's problem" refers to​ __________.

how consumers arrive at a choice as to what to purchase.

The difference between accounting profits and economic profits​ is:

implicit costs

Helium is lighter than air and thus can be used to make party balloons float. Helium is also an inert gas that is vital for many industrial applications​ (such as medical imaging​ technology) that require achieving super low temperatures. This relatively new industrial application has caused the demand for helium to​ ________. This has resulted in​ ________ in the price of party balloons because helium is​ ________ for these balloons.

increase, increase, input

A group of economic agents who are trading a good or service would define a ______. Price takers exist throughout ______ markets.

market, competitive

A competitive market will

move towards equilibrium quantity because both producers and consumers act in their own best interest.

The demand curve graphs a consumers responsiveness to a change in _____ . The points on the curve can be verified through _____ .

price, marginal analysis

The market supply curve is the _____ of all the supply curves of potential producers and would be graphed to the _____ of the individual curves.

sum, right

The aggregate difference between the average total cost ​(ATC​) and average variable cost ​(AVC​) for all units of production is​ the:

total fixed cost

Suppose ventilator manufacturers are​ profit-maximizing firms with costs outlined in this chapter​ (large fixed cost and increasing marginal​ costs). These firms typically operate in a competitive​ market, though the government is considering the following policies to boost production. For each​ policy, explain whether production will in fact increase. The government gives each firm a large sum of money with no strings attached. Will ventilator production​ increase? The government promises to buy ventilators at an​ above-market price. Will ventilator production​ increase? Via tax​ subsidies, the government reduces the cost of labor and parts. Will ventilator production​ increase?

​No, a​ no-strings attached sum of money will not impact marginal revenue or marginal​ cost, so production will remain unchanged. No, the government promising to buy ventilators at an​ above-market price will have no impact on production. Yes, the subsidy will lower cost and encourage entry into the​ market, causing production to increase.


Set pelajaran terkait

Abnormal Psych. Exam 2 - Ch. 7 OCD and Trauma Disorders

View Set

International Business Chapter 10

View Set

Liselotte - Describe what's in a room

View Set

IGCSE Travel and Tourism - Unit 3 - Customer Care and Working Procedures

View Set