Assume a national brewing company loses market share to a lower-priced competitor. Assume also that the company’s workers go on strike and are able to negotiate a hefty wage increase. As such, we can conclude, with certainty, that the combination of these two changes would cause the equilibrium price and quantity of the company’s product […]
Refer to Scenario 1. What is the coefficient of determination? A) 1.000 B) 0.000 C) 0.037 D) 0.324 ANSWER C
When price is less than average variable cost at the profit-maximizing level of output, a firm should: A) continue to produce the level of output at which marginal revenue equals marginal cost if it is operating in the short run. B) continue to produce the level of output at which marginal revenue equals marginal cost […]
When economists say that money promotes ________, they mean that money encourages specialization and the division of labor. A) bargaining B) contracting C) efficiency D) greed ANSWER C
A simultaneous improvement in the technology used to produce computers and increase in the number of buyers in the computer market would cause the equilibrium price of computers to drop but have an uncertain effect on equilibrium quantity. Indicate whether the statement is true or false ANSWER FALSE
From 1950-2014 the price level in the United States increased more than A) twofold. B) threefold. C) sixfold. D) tenfold. ANSWER D
The function of money that enables prices of goods and services to be quoted is called: A) medium of exchange. B) store of value. C) unit of account. D) measure of power. ANSWER C
The managerial technique of markup pricing is consistent with the economic theory of profit maximization when the markup is positively related to the price elasticity of demand. Indicate whether the statement is true or false ANSWER FALSE
Refer to Scenario 1. Is the slope coefficient statistically different from zero? A) No. B) Yes. C) Inconclusive. D) None of the above. ANSWER A
When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should: A) continue to produce the level of output at which marginal revenue equals marginal cost. B) increase output to minimize its losses. C) reduce output to the level at which price equals […]
