Designing your products with proprietary technology, is a way to A) protect intellectual property. B) increase switching costs for your customers. C) grandfather in your products. D) decrease your marginal cost. ANSWER B
Date: September 9th, 2020
One way to restructure Social Security to meet its future obligations would be to _____. a. lower the retirement age b. reduce Social Security benefits c. increase benefits only on the poor d. eliminating pay-as-you-go ANSWER d
Date: September 9th, 2020
An exclusive deal is A) always illegal. B) welfare reducing. C) one where a firm will only sell to a customer if the customer agrees not to buy anything from the firm’s rivals. D) All of the above. ANSWER C
Date: September 9th, 2020
The Stackelberg model is more appropriate than the Cournot model in situations where A) there are more than two firms. B) all firms enter the market simultaneously. C) one firm makes its output decision before the other. D) firms will be likely to collude. ANSWER C
Date: September 9th, 2020
Describe the factors in Michael Porter’s “Five Forces Model” that affect the ability of any firm in an industry to earn a profit. What will be an ideal response? ANSWER Threats of new entrants into the industry, bargaining power of a firm’s customers, bargaining power of a firm’s suppliers, threats of substitute products from […]
Date: September 9th, 2020
The Equivalent Variation resulting from a quota is best defined as A) the amount a consumer would pay to have the quota removed. B) the amount the consumer would need to voluntarily accept the quota. C) the amount a consumer would pay for the quantity specified by the quota. D) the loss in utility resulting […]
Date: September 9th, 2020
Assume a firm is a monopoly and enjoys $10 million in profits per year. The firm lobbies to have a moratorium passed by Congress on new firms in its market for the next 25 years. If there is no discount rate, how much would the firm be willing to pay to deter entry? A) $250 […]
Date: September 9th, 2020
Consider a market with just one firm. The demand in the market is p = 18 Q and the firm has a linear cost function C(Q) = 2Q. a. How much output will this firm produce. What will be the profit and consumers surplus? b. Suppose a second firm with the same cost function […]
Date: September 9th, 2020
Vertical integration can A) lower transaction costs due to lower costs of writing and enforcing contracts. B) increase management costs and complexity. C) reduce problems between owners and managers. D) All of the above. ANSWER D
Date: September 9th, 2020
The OASDI trust fund is projected to sink below zero in ¬¬_____. a. 2012 b. 2021 c. 2033 d. 2045 ANSWER d
Date: September 9th, 2020
