Under some relative definitions, poverty will persist as long as income inequality does. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
A monopolist has determined that at the current level of output the price elasticity of demand is -0.15. Which of the following statements is true? A) The firm should cut output. B) This is typical for a monopolist; output should not be altered. C) The firm should increase output. D) None of the above is […]
Date: September 9th, 2020
Which of the following goods may have demand that is potentially affected by the bandwagon effect? A) Satellite radio B) Cellular telephones C) High-definition (HD) televisions D) Electronic book readers E) all of the above ANSWER E
Date: September 9th, 2020
An improvement in technology would result in A) upward shifts of MC and reductions in output. B) upward shifts of MC and increases in output. C) downward shifts of MC and reductions in output. D) downward shifts of MC and increases in output. E) increased quality of the good, but little change in MC. […]
Date: September 9th, 2020
Refer to Scenario 15.3. $X would be higher if Ms. Querty’s A) income and the interest rate were higher. B) income and the interest rate were lower. C) income were higher and the interest rate were lower. D) income were lower and the interest rate were higher. E) mortality rate and growth in income were […]
Date: September 9th, 2020
Refer to Scenario 15.2. If the interest rate were 20%, Furry Software should A) retool the offices. B) rewire the network. C) move to Southern California. D) be indifferent between retooling and rewiring. E) be indifferent between retooling and moving. ANSWER B
Date: September 9th, 2020
Refer to Scenario 17.2. The lowest level of y* that can be set and still have only the high-productivity people meet it is A) 90. B) 60. C) 30. D) 22.5. E) 15. ANSWER E
Date: September 9th, 2020
Refer to Scenario 17.1. An employer who only wants to hire individuals who find learning less costly can do so by choosing y* to be anywhere between A) 7 and 14. B) 8 and 13 1/3. C) 10 and 16. D) 13 1/3 and 20. E) 14 and 20. ANSWER B
Date: September 9th, 2020
A monopolist has set her level of output to maximize profit. The firm’s marginal revenue is $20, and the price elasticity of demand is -2.0. The firm’s profit maximizing price is approximately: A) $0 B) $20 C) $40 D) $10 E) This problem cannot be answered without knowing the marginal cost. ANSWER C
Date: September 9th, 2020
When the snob effect exists, a change in price is likely to A) change total revenue less than if there were no network externalities. B) change total revenue more than if there were no network externalities. C) change total revenue the same amount as if there were no network externalities. D) not change total revenue […]
Date: September 9th, 2020
