Question: Calculate equilibrium price and quantity in widget market
Answer Choices:
Various prices and quantities
Answer: $32 price, 2 quantity
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\n18. Individual Problems 8-2
Question: Will increased housing benefits make faculty positions more attractive long-term?
Answer Choices:
True/False
Answer: False
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\n24. Individual Problems 9-2
Question: Should Smith & Smith increase production and capacity due to H14N9?
Answer Choices:
increase/decrease production, True/False for capacity
Answer: increase production, True for increasing capacity
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\n20. Individual Problems 8-4
Question: How would marijuana legalization affect cigarette distributors?
Answer Choices:
Various effects
Answer: a decrease in demand, oppose legalization
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\n25. Individual Problems 9-3
Question: Why might Nike use its brand name for sports beverages?
Answer Choices:
Two cost comparison statements
Answer: The cost of producing sports beverages along with its current products under the Nike brand name is less than the cost of producing sports beverages under a new brand name plus the cost of producing Nike’s current products under the Nike brand name
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\n14. Individual Problems 7-3
Question: Calculate the average cost for Riverside Ranger logo T-shirts
Answer Choices:
Multiple AC formulas
Answer: AC = $23,000/Q + $5, exhibits economies of scale
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\n15. Individual Problems 7-4
Question: What price should be set when elasticity changes from -2 to -3?
Answer Choices:
Various price calculations
Answer: $19.50
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\n11. Individual Problems 6-4
Question: Compare supply sensitivity of Valentine’s cards vs roses
Answer Choices:
more/less sensitive
Answer: more sensitive
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\n23. Individual Problems 9-1
Question: Which industry managers focus more on pricing vs. cost reduction?
Answer Choices:
competitive/monopolistic industries
Answer: competitive, monopolistic
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\n27. Individual Problems 9-5
Question: Why might a retail store offer free parking?
Answer Choices:
Multiple explanations about complementary/substitute goods
Answer: Parking and shopping are complements, so offering free parking should increase the demand for the store’s merchandise
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\n12. Individual Problems 7-1
Question: How does the “A” index price of cotton change with demand/supply shifts?
Answer Choices:
leftward/rightward shift
Answer: rightward shift in supply
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\n19. Individual Problems 8-3
Question: How does average cost behave under decreasing returns to scale?
Answer Choices:
falls/rises/remains constant, higher than/equivalent to/lower than
Answer: rises, higher than
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\n16. Individual Problems 7-5
Question: How should price be adjusted when demand elasticity changes?
Answer Choices:
Various price calculations
Answer: $22.50
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\n26. Individual Problems 9-4
Question: Match descriptions to economies of scale and scope
Answer Choices:
Two descriptions to match
Answer: Economies of Scale: Long-run average costs are lower for greater quantities of output
\nEconomies of Scope: The cost of producing two products separately is greater than the cost of producing both of those goods jointly
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\n13. Individual Problems 7-2
Question: How does rapid economic growth affect candy bar market?
Answer Choices:
Various effects on equilibrium
Answer: increased quantity and price
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\n21. Individual Problems 8-5
Question: How should rapid economic growth affect candy bar market equilibrium?
Answer Choices:
Various directional changes
Answer: increased quantity, increased price
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\n10. Individual Problems 6-3
Question: Compare monopolist and competitive firm economic profits
Answer Choices:
Various statements about profits and timing
Answer: can earn positive profits in short run, neither monopolists nor competitive firms in long run, True (adjustment faster for competitive industries)
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\n17. Individual Problems 8-1
Question: How does an increase in substitute product price affect demand?
Answer Choices:
Yes/No for shift, direction of shift
Answer: Yes, Rightward shift
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\n22. Individual Problems 8-6