Refer to Figure 9.6. As a result of this policy, quantity will A) fall to 300. B) rise to 400. C) stay at 400. D) fall to 400. E) rise to 600. ANSWER E
Date: September 9th, 2020
Consider the following statements when answering this question. I. As Boeing’s production fell 10% to 100 planes last year, learning by doing cannot account for this year’s changes in long-run average costs. II. Failure to take into account the effects of learning by doing will lead to overestimates of the cost-output elasticity. A) I is […]
Date: September 9th, 2020
Given that MEC(q) = 2q2, what can be inferred about the total cost of pollution as output increases? A) The total cost of pollution is increasing. B) The total cost of pollution is positive. C) The total cost of pollution is growing at a positive rate. D) The total cost of pollution is growing at […]
Date: September 9th, 2020
The presence of a learning curve may induce a decision maker in a startup firm to choose A) low levels of output to exploit economies of scale. B) high levels of output to exploit economies of scale. C) low levels of output to shift the average cost curve down over time. D) high levels of […]
Date: September 9th, 2020
Refer to Figure 7.2. A movement from A to B in the figure represents A) economies of scale. B) diseconomies of scale. C) learning. D) economies of scope. E) diseconomies of scope. ANSWER A
Date: September 9th, 2020
Refer to Figure 9.6. Before this policy was implemented, consumer surplus was A) $20. B) $4000. C) $6000. D) $8000. E) $12000. ANSWER B
Date: September 9th, 2020
Relative to the Nash equilibrium in the Cournot model, the Nash equilibrium in the Bertrand model with homogeneous products A) results in the same output but a higher price. B) results in the same output but a lower price. C) results in a larger output at a lower price. D) results in a smaller output […]
Date: September 9th, 2020
In a competitive labor market, with one variable factor, the supply of labor to the firm is A) equal to the marginal expenditure curve. B) equal to the demand curve for labor. C) greater than the marginal expenditure curve. D) equal to the marginal revenue product curve. ANSWER A
Date: September 9th, 2020
When emissions are measured on the horizontal axis, the marginal cost of abating emissions is A) downward-sloping because emissions become more and more easy to eliminate once the firm makes the initial commitment to do so. B) downward-sloping because a high level of emissions is cheap to attain, and a low level of emissions is […]
Date: September 9th, 2020
If two goods are substitutes, the cross-price elasticity of demand must be A) negative. B) positive. C) zero. D) infinite. ANSWER B
Date: September 9th, 2020
