Block pricing A) is a form of nonlinear price discrimination. B) is pricing where one price is charged for the first block of units purchased, and different prices for subsequent blocks. C) can be either use increasing or decreasing prices for blocks purchased. D) All of the above. ANSWER D
Date: September 9th, 2020
Which of the following is true for a monopoly? A) P = MC B) P = MR C) P > MR D) P < MR ANSWER C
Date: September 9th, 2020
If the income elasticity of a particular good is negative 0.2, it would be considered A) a superior good. B) a normal good. C) an inferior good. D) an elastic good. ANSWER C
Date: September 9th, 2020
Perfect competition and monopolistic competition are similar in that firms in both types of market structure will A) act as price takers. B) produce a level of output where price equals marginal cost. C) earn zero profit in the long run. D) act as price setters. ANSWER C
Date: September 9th, 2020
A firm sets its output where A) marginal profit minus marginal cost equals zero (MP – MC = 0). B) marginal revenue minus marginal profit equals zero (MR – MP = 0). C) marginal revenue minus marginal cost equals zero (MR – MC = 0). D) marginal revenue minus marginal cost is greater than zero […]
Date: September 9th, 2020
Compared to a direct cash transfer payment of an identical amount, food stamps make individuals who desire less food than the value of the food stamps _____. a. better off b. worse off c. indifferent between food and all other goods d. prefer food too all other goods on the margin ANSWER b
Date: September 9th, 2020
Individuals who live in public housing _____. a. live in better housing than if public housing was not available b. are better off than they would be absent public housing c. forfeit their eligibility for the EITC d. are automatically enrolled in the TANF program ANSWER b
Date: September 9th, 2020
When diminishing marginal returns set in, A) average product is increasing. B) average variable cost is decreasing. C) average cost is decreasing. D) None of above. ANSWER D
Date: September 9th, 2020
Suppose the price of crude oil drops from $150 a barrel to $120 a barrel. The quantity bought remains unchanged at 100 barrels. The coefficient of price elasticity of demand in this example would be A) -0.5. B) infinity. C) -1.0. D) 0. ANSWER D
Date: September 9th, 2020
When a firm has the power to establish its price A) P = MR. B) P = MC. C) P > MR. D) P < MR. ANSWER C
Date: September 9th, 2020
