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
Assume that beer is a normal good. If the price of beer rises, then the substitution effect results in the person buying ________ of the good and the income effect results in the person buying ________ of the good. A) more, more B) more, less C) less, more D) less, less ANSWER D
Date: September 9th, 2020
Jack is near retirement and worried that if the stock market falls he will not be able to wait to take his funds out, and will have to sell at the bottom of the market. Richard thinks the probability of a stock market downturn is the same, but he is only 40 and could therefore […]
Date: September 9th, 2020
A movement from A to C in Figure 7.2 may represent A) economies of scale. B) diseconomies of scale. C) learning. D) economies of scope. E) diseconomies of scope. ANSWER C
Date: September 9th, 2020
Refer to Figure 9.6. The government policy pictured is A) a price ceiling of $20. B) a price support of $20. C) a price ceiling of $15. D) a price support of $15. E) A quota of 600. ANSWER B
Date: September 9th, 2020
What happens to the marginal revenue product curve of a factor as more of a complementary factor is hired? A) It shifts to the left, because its marginal product decreases. B) It shifts to the left, because its marginal product increases. C) It shifts to the right, because its marginal product decreases. D) It shifts […]
Date: September 9th, 2020
Your company sells health food products, and you have recently developed a new high-protein drink (HPD) as well as a high-carbohydrate energy bar (HCE). As the product manager for the firm, you are responsible for setting the pricing policy for the new products. You are considering a bundled package that includes both products, and you […]
Date: September 9th, 2020
