The cross-price elasticity of demand for coffee and coffee-cream is likely to be A) greater than zero. B) less than zero. C) zero. D) infinity. ANSWER B
Date: September 9th, 2020
If an industry could be organized either perfectly competitively or as monopoly, a monopoly would A) produce less output. B) produce where P > MC. C) charge higher prices. D) All of the above ANSWER D
Date: September 9th, 2020
In a second-price auction, the winner pays A) the second-to-last bid it made. B) the average of the top two bids. C) the amount bid by the runner-up. D) None of the above. ANSWER C
Date: September 9th, 2020
Food stamps are ______. a. financed by the federal government but administered by the states b. financed by the federal government and the states and administered by the states c. financed by the federal government and the states and administered by localities d. financed by the states but administered by the counties ANSWER a […]
Date: September 9th, 2020
Which of the following workers is most likely to be asked to post a performance bond? A) construction contractor B) fast food worker C) economics professor D) book author ANSWER A
Date: September 9th, 2020
Nonlinear price discrimination A) sets the price consumers pay based on quantity purchased. B) is where the firm sets prices in geometrically or exponentially decreasing price points. C) is used in situations where consumers have no reservation prices. D) eliminates deadweight loss. ANSWER A
Date: September 9th, 2020
Rachel spends her income, Y, on Rock Shows (R) and Sunglasses (S) with prices pR and pS. Rachel’s preferences are given by the Cobb-Douglas utility function U(X,Y) = R.8S.2 a. Write out the Lagrangian for Rachel’s utility-maximization problem. b. Use the Lagrangian to derive Rachel’s optimal choice, (R*,S*). c. For a given utility level, U0, […]
Date: September 9th, 2020
The cross-price elasticity of demand for coffee and caskets is likely to be A) less than zero. B) greater than zero. C) zero. D) infinity. ANSWER C
Date: September 9th, 2020
Which of the following correctly completes this statement? The monopolist’s marginal revenue A) will be greater than price. B) will be less than price. C) will be equal to price. D) will be greater than total revenues. ANSWER B
Date: September 9th, 2020
The food stamp program was started to _____. a. increase demand for agricultural products b. reduce poverty c. provide better nutrition for low-income individuals d. a and c ANSWER d
Date: September 9th, 2020
