Question: The marginal revenue of the eleventh bicycle is
Answer Options: A. $50 B. $150 C. $7,150 D. -$50
Answer: B ($150)
Question: Which of the following costs do not change when output changes in the short run?
Answer Options: A. average variable costs B. variable costs C. fixed costs D. average fixed costs
Answer: C (fixed costs)
Question: (Table 25.2) The U.S. Justice Department would most likely…
Answer Options: A. not allow any mergers among firms in this industry. B. allow a merger between Hurricane and Blue Lagoon. C. allow a merger between North Star and Blue Lagoon. D. allow a merger between Blue Lagoon and Clean Sweep.
Answer: D (allow a merger between Blue Lagoon and Clean Sweep)
Question: (Table 241) The marginal revenue at the profit-maximizing level of output is…
Answer Options: A. $150.00 B. $250.00 C. $550.00 D. $300.00
Answer: D ($300.00)
Question: An increase in the equilibrium price of electricity can be caused by…
Answer Options: A. a decrease in the demand for electricity. B. an increase in the supply of electricity. C. an increase in the quantity demanded of electricity. D. an increase in the demand for electricity.
Answer: D (an increase in the demand for electricity)
Question: The production decision is a long-run supply decision.
Answer Options: True or False
Answer: False
Question: When the relationship between two variables changes…
Answer Options: A. the curve will be upward sloping. B. the curve becomes linear. C. the entire curve shifts. D. there is movement from one point on the curve to another.
Answer: C (the entire curve shifts)
Question: Perfect competition is a situation in which…
Answer Options: A. every year owners are likely to earn economic losses. B. there are many firms and several buyers or sellers have market power. C. every year owners are likely to earn economic profits. D. there are many firms and no buyer or seller has market power.
Answer: D (there are many firms and no buyer or seller has market power)
Question: Reductions in minimum average costs…are called
Answer Options: A. economies of scale. B. economies to monopoly power. C. barriers to entry. D. diseconomies of entry.
Answer: A (economies of scale)
Question: Challenges for COPEC exclude…
Answer Options: A. coordination B. replicating monopoly outcomes C. preventing some members from decreasing production D. allocating market share
Answer: C (preventing some members from decreasing production)
Question: Which is a financial intermediary?
Answer Options: A. flea markets B. gun shows C. stock markets D. real estate markets
Answer: C (stock markets)
Question: GATT committed members to…
Answer Options: A. encouraged trade restrictions B. eliminated all nontariff barriers C. established the European Common Market D. reduction of protectionism
Answer: D (committed GATT members to a reduction of protectionism)