In the absence of any government regulation on price, if a firm has no power to set price on its own, one can safely conclude A) the demand curve for the firm’s product is horizontal. B) there aren’t many firms in the industry. C) the market is in long-run equilibrium. D) the firms in this […]
Date: September 9th, 2020
Many used car owners and used car dealers describe their different cars for sale in the local newspapers and list their asking price. Many people shopping for a used car consider the different choices listed in the paper. The market for used cars could be described as A) relatively competitive. B) perfectly competitive. C) non-competitive. […]
Date: September 9th, 2020
Many car owners and car dealers describe their different cars for sale in the local newspapers and list their asking price. Many people shopping for a used car consider the different choices listed in the paper. The absence of which condition prohibits this market from being described as perfectly competitive? A) Buyers and sellers know […]
Date: September 9th, 2020
If consumers view the output of any firm in a market to be identical to the output of any other firm in the market, the demand curve for the output of any given firm A) will be identical to the market demand curve. B) will be horizontal. C) will be vertical. D) cannot be determined […]
Date: September 9th, 2020
In a competitive market, if buyers did not know all the prices charged by the many firms, A) all firms still face horizontal demand curves. B) firms sell a differentiated product. C) demand curves can be downward sloping for some or all firms. D) the number of firms will most likely decrease. ANSWER C […]
Date: September 9th, 2020
Economists define a market to be competitive when the firms A) spend large amounts of money on advertising to lure customers away from the competition. B) watch each other’s behavior closely. C) are price takers. D) All of the above. ANSWER C
Date: September 9th, 2020
If the inverse demand function for a monopoly’s product is p = 100 – 2Q, then the firm’s marginal revenue function is A) -2. B) 100 – 4Q. C) 200 – 4Q. D) 200 – 2Q. ANSWER B
Date: September 9th, 2020
If the inverse demand curve a monopoly faces is p = 100 – 2Q, then profit maximization A) is achieved when 25 units are produced. B) is achieved by setting price equal to 25. C) is achieved only by shutting down in the short run. D) cannot be determined solely from the information provided. […]
Date: September 9th, 2020
If a pharmaceutical firm is researching ways to improve its heartburn medicine and discovers a technique that will improve its allergy medicine, one could conclude that economies of scope exist in that industry. Indicate whether the statement is true or false ANSWER True . Economies of scope imply that the cost of producing two […]
Date: September 9th, 2020
Economies of scope A) is a situation in which it is more expensive to produce goods separately than jointly. B) is the opposite of economies of scale. C) occur whenever only one good is produced at a time. D) are an example of the gains from specialization. ANSWER A
Date: September 9th, 2020
