A quintile is 20% (one-fifth) of a population group. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Suppose the market demand curve for cable internet service is completely elastic. At the market equilibrium price under perfect competition, the consumer surplus in this market equals: A) total consumer expenditures. B) total sales revenue. C) zero. D) an amount slightly more than total consumer expenditure. ANSWER C
Date: September 9th, 2020
Refer to Figure 8.1. At the profit-maximizing level of output, ATC is A) $26. B) $30. C) $31. D) $40. E) $44. ANSWER C
Date: September 9th, 2020
Refer to Figure 8.1. The firm earns zero profit at what output? A) 0. B) 34 and 79. C) 54. D) 60. E) 67. ANSWER B
Date: September 9th, 2020
Suppose that a firm can produce its output at either of two plants. If profits are maximized, which of the following statements is true? A) The marginal cost at the first plant must equal marginal revenue. B) The marginal cost at the second plant must equal marginal revenue. C) The marginal cost at the two […]
Date: September 9th, 2020
Three individuals consume a public good, and their demands are expressed as: P1 = 1.5 – 0.005Q (for Q < 300 ); P2 = 4.5 - 0.007Q (for Q < 643 ); P3 = 3.0 - 0.002Q (for Q < 1500 ), where P represents price in dollars per unit and Q represents output in […]
Date: September 9th, 2020
The formula for finding the present value of an amount M that will be received one year from now, when the interest rate is R, is A) M × (1 + R/100). B) M × (1 + R). C) M / (1 + R). D) M / R. E) M / (100R). ANSWER C […]
Date: September 9th, 2020
To find the profit maximizing level of output, a firm finds the output level where A) price equals marginal cost. B) marginal revenue and average total cost. C) price equals marginal revenue. D) all of the above E) none of the above ANSWER E
Date: September 9th, 2020
Compared to the equilibrium price and quantity sold in a competitive market, a monopolist will charge a ________ price and sell a ________ quantity. A) higher; larger B) lower; larger C) higher; smaller D) lower; smaller E) none of these ANSWER C
Date: September 9th, 2020
How does the federal government avoid the asymmetric information problem associated with providing health care to people over 65 years of age? A) Health care is standardized and is the same for all people over 65 years of age. B) Health insurers rely on the reputation of the covered individuals. C) Participation in the Medicare […]
Date: September 9th, 2020
