To develop a competitive advantage and increase their firm’s profitability, managers need to understand what affects their revenues, costs, and their ability to set prices. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
“Gross Investment spending” refers exclusively to purchases of plant and equipment by businesses and net changes in business inventories. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
To maximize joint profits, a cartel must determine the level of output at which: A) joint marginal revenue equals the marginal cost of the largest member of the cartel. B) marginal revenue equals joint marginal cost. C) the horizontally sum of the members marginal cost curves is at a minimum. D) joint marginal revenue equals […]
Date: September 10th, 2020
When a demand curve is perfectly elastic: A) marginal revenue = average revenue = price. B) marginal revenue > average revenue = price. C) marginal revenue < average revenue = price. D) marginal revenue > average revenue > price. ANSWER A
Date: September 10th, 2020
Because it is the only firm operating in a particular market, a monopolist is guaranteed to earn an economic profit. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following statements concerning the long-run average cost (LRAC) curve is correct? A) The LRAC curve represents the least-cost input combination of inputs for producing each level of output. B) The LRAC curve is derived from a series of short-run marginal cost curves. C) The short-run cost curve at the minimum point of […]
Date: September 10th, 2020
The success of a predatory pricing strategy in an oligopolistic market depends on all of the following except: A) the number of firms operating in the industry prior to enactment of the policy. B) how far the predatory price is below cost. C) the period of time for which the predatory price is in effect. […]
Date: September 10th, 2020
All else constant, as the barriers to entry into a particular market increase, so will the ability of firms in that market to earn above-average profits. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Potential GDP focuses on the: A) long-run supply side of the economy. B) long-run demand side of the economy. C) short-run supply side of the economy. D) short-run demand side of the economy. ANSWER A
Date: September 10th, 2020
The negatively-sloped part of the long-run average total cost curve is due to which of the following? A) Diseconomies of scale. B) Diminishing returns. C) The difficulties encountered in coordinating the many activities of a large firm. D) The increase in productivity that results from specialization. ANSWER D
Date: September 10th, 2020
