In the U.S., charging monopoly-level prices A) is evidence of a conspiracy. B) is illegal. C) is not necessarily illegal. D) constitutes a per se violation. ANSWER C
Date: September 9th, 2020
Distinguish between risk that can be reduced through diversification and risk that cannot be reduced through diversification. What will be an ideal response? ANSWER Risk that cannot be diversified away affects all investments equally. Examples would include war and natural disasters. Risk that can be reduced through diversification includes changes to the value of […]
Date: September 9th, 2020
A firm’s horizontal dimension refers to A) its size in its primary market. B) its size in all markets in which is competes. C) the level of supply chain integration the firm undertakes. D) the number of stages in the production process that are upstream from the stages the firm undertakes. ANSWER A
Date: September 9th, 2020
Cartels persist despite laws against them because A) international cartels are legal. B) it is impossible to convict firms. C) of the Prisoners’ Dilemma issue. D) All of the above. ANSWER A
Date: September 9th, 2020
In which of these markets would the firms be facing the least elastic demand curve? A) perfect competition B) pure monopoly C) monopolistic competition D) oligopoly ANSWER B
Date: September 9th, 2020
The Compensating Variation for an increase in the price of a good is A) the minimum amount of money a consumer would accept to voluntarily accept the price increase. B) the maximum amount of money a consumer would pay to avoid the price increase. C) the change in consumer surplus resulting from a price increase. […]
Date: September 9th, 2020
With peak-load pricing, a firm A) charges more for a good during periods of high demand. B) charges more for a hotel room the higher up the mountain it is. C) charges less for a good during periods of high demand, because of regulatory reasons. D) is generally used during January and February. ANSWER […]
Date: September 9th, 2020
When a company is faced by a kinked demand curve, the marginal revenue curve A) will be upward sloping. B) will be horizontal. C) will always be zero at the quantity produced. D) will be discontinuous. ANSWER D
Date: September 9th, 2020
Which indicator shows how well a regression line fits through the scatter of data points? A) F-test B) R2 C) t-test D) Durbin-Watson test ANSWER B
Date: September 9th, 2020
The market power for a firm in the Cournot model will be greater A) if the market demand is more elastic. B) if there are fewer firms in the industry. C) if market demand is higher. D) the more output this firm produces. ANSWER B
Date: September 9th, 2020
