In the kinked demand curve model, the demand curve is ________ for price increases and ________ for price decreases. A) unit elastic; relatively elastic B) relatively inelastic; relatively elastic C) relatively elastic; relatively inelastic D) perfectly elastic; perfectly inelastic ANSWER C
Date: September 9th, 2020
In a Duopoly Nash-Cournot equilibrium, A) neither firm has an incentive to change its output level given the other firm’s output decision. B) firms will choose the pair of quantities above the intersection of the two best response functions. C) firms will choose the pair of quantities below the intersection of the two best response […]
Date: September 9th, 2020
According to the survivor principle A) firms will get taken over by their larger rivals over time. B) only firms that maximize profits survive in highly competitive markets. C) managers only work hard if they are threatened with their survival at the firm. D) eventually all firms merge to become one large monopoly. ANSWER […]
Date: September 9th, 2020
In the U.S., the ________ and the ________ prohibit firms from explicitly agreeing to take actions that reduce competition. A) Department of Justice Act; Federal Trade Commission Act B) Sherman Antitrust Act; Federal Trade Commission Act C) Per Se Act; Sherman Antitrust Act D) Pareto Act; Anti-Cartel Act ANSWER B
Date: September 9th, 2020
Monitoring a manager can be difficult if A) the owner and manager do not have an enforceable contract. B) the owner cannot easily observe the manager’s actions. C) the manager doesn’t have to use a time clock. D) the board does not have enough outside directors. ANSWER B
Date: September 9th, 2020
The demand curve, which assumes that competitors will follow price decreases but not price increases, is called A) an industry demand curve. B) an inelastic demand curve. C) a kinked demand curve. D) a competitive demand curve. ANSWER C
Date: September 9th, 2020
Married couples with only one working spouse paying Social Security taxes will ______. a. receive less in benefits than a single individual with the same lifetime payments b. receive the same in benefits as a single individual with the same lifetime payments c. receive more in benefits than a single individual with the same lifetime […]
Date: September 9th, 2020
Which of the following is a measure of the explanatory power of the regression model? A) t-test B) R2 C) F-test D) Durbin-Watson test ANSWER B
Date: September 9th, 2020
R2 is a statistical measure which A) determines how important one variable is in explaining the value of another variable. B) tests the true value of a variable. C) determines how well an equation can estimate the relationship between one variable and a set of other variables. D) All of the above ANSWER C […]
Date: September 9th, 2020
Laws that are used to prevent firms from colluding and setting high prices are called A) anti-trust laws. B) price ceiling laws. C) anti-cartel laws. D) anti-competition policies. ANSWER A
Date: September 9th, 2020
