An auction in which the price announced by the auctioneer DESCENDS is called a(n) A) Dutch Auction. B) English Auction. C) Sealed Bid Auction. D) Descending Option Auction. ANSWER A
Date: September 9th, 2020
Assume a perfectly competitive firm’s short-run cost is TC = 100 + 160Q + 3Q2. If the market price is $196, what should it do? A) produce 5 units and continue operating B) produce 6 units and continue operating C) produce zero units (i.e., shut down) D) Cannot be determined from the above information […]
Date: September 9th, 2020
The compensated demand curve holds the consumer’s utility fixed as the price changes. Indicate whether the statement is true or false ANSWER True . Along the compensated demand curve, income adjusts such that utility does not change.
Date: September 9th, 2020
TANF stands for _____. a. Temporary Aid to Needy Families b. Temporary Assistance to Needy Families c. Transitory Aid to Needy Families d. Transitory Assistance to Needy Families ANSWER a
Date: September 9th, 2020
In an English auction A) the price decreases until someone bids. B) the price increases until nobody else will raise the bid. C) bidders put their bids in a sealed envelope. D) the winning bidder pays the amount bid by the person with the second highest bid. ANSWER B
Date: September 9th, 2020
A specialized rice grower sells rice in two markets, the United States and Japan, and the marginal cost is the same in both markets. The price elasticity of demand in the United States is -2.0, and the price elasticity of demand in Japan is -1.5. If the grower practices group price discrimination, which country’s consumers […]
Date: September 9th, 2020
Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) perfectly inelastic. ANSWER B
Date: September 9th, 2020
Firms use hostages A) to force employees to work. B) to encourage good behavior. C) to get employees to work for less money. D) None of the above. ANSWER B
Date: September 9th, 2020
Assume a profit maximizing firm’s short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 – 15Q, what should it do in the short run? A) shut down B) continue operating in the short run even though it is losing money C) continue operating because it is earning an […]
Date: September 9th, 2020
In long-run equilibrium a perfectly competitive firm will operate where the price is A) greater than MR but equal to MC and minimum ATC. B) greater than MR and MC, but equal to minimum ATC. C) greater than MC and minimum ATC, but equal to MR. D) equal to MR, MC and minimum to ATC. […]
Date: September 9th, 2020
