The Prisoner’s Dilemma is an example of A) market signaling. B) a zero-sum game. C) a non-zero sum, non-cooperative game with a dominant strategy. D) adverse selection. ANSWER C
Date: September 9th, 2020
Production of a good produces pollution that is very damaging with each additional unit. A monopoly facing a very elastic demand curve will most likely produce A) less than the social optimum of the good. B) more than the social optimum of the good. C) the social optimum of the good. D) no externality. […]
Date: September 9th, 2020
What are the four different characteristics that data exhibit when undertaking time-series forecasts? What will be an ideal response? ANSWER Trend; Cyclical Fluctuations; Seasonal Variation; Irregular Movements
Date: September 9th, 2020
The song “Happy Birthday” is likely protected A) as a trade secret. B) with a patent. C) under copyright law. D) in a trust. ANSWER C
Date: September 9th, 2020
Explain the reasons firms might follow the Baumol model of maximizing revenue subject to achieving a minimum level of profits. What will be an ideal response? ANSWER Firms might wish to increase their market shares within the industry, managers’ power and prestige tend to grow with an increase in the size of a business’ […]
Date: September 9th, 2020
The following are the actual sales for the last six periods: Period Sales 1 750 2 820 3 600 4 850 5 900 6 700 Using a 3-month moving average, what would be your prediction for period 7? ANSWER 817
Date: September 9th, 2020
Describe the circumstances under which a producer of joint products in fixed proportions might not sell all of one of the available joint products at the profit-maximizing level of operations. What will be an ideal response? ANSWER At the profit-maximizing level of output, the demand for that joint product would be such that the […]
Date: September 9th, 2020
A patent is a property right, which gives the owner A) the right to sell and/or license the invention. B) the ability to make the knowledge of how to make the invention rival. C) a guaranteed profit. D) All of the above. ANSWER A
Date: September 9th, 2020
If both a monopoly and a competitive market with the same marginal cost would produce a quantity that is greater than the social optimum in a market because of externalities, then A) welfare is greater under monopoly. B) welfare is greater under competition. C) welfare is the same for both market structures. D) the social […]
Date: September 9th, 2020
Suppose in the automobile industry with free entry and exit, the marginal cost is constant at $5,000, two identical manufacturers are currently producing 1,000 cars each and earning zero economic profit. If the equilibrium price is $20,000, then what is the fixed cost for each manufacturer? A) $20,000,000 B) $15,000,000 C) $5,000,000 D) $10,000,000 […]
Date: September 9th, 2020
