ajskhkudfs

An example of an implicit cost is the foregone income that a business owner-manager could have earned working forsomeone else

• True

• False

Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $200,000 in totalrevenues and paid $125,000 to his employees and suppliers. During the course of the year, hereceived three offers to work for other barbers, with the highest offer being $50,000 per year.2.

What are Joe's implicit costs

• $150,000

• $175,000

• $35,000

• $50,000

What is the total cost of firm B at the profit-maximizing (or loss-minimizing) level ofproduction?

• $11

• $750

• $1,650

• $400

Resources are allocated efficiently when

• he exchange value of the resources to demanders is greater than the opportunity cost of the resources

• the marginal benefit to demanders of the resources in the goods they purchase is less than the marginal cost tosuppliers of the resources they use in producing the goods

• firms produce the quantity of output at which price is equal to marginal cost

• firms produce the quantity of output at which price is greater than marginal cost

At the profit-maximizing level of output, price is greater than marginal cost for a seller practicing perfect pricediscrimination

• True

• False

A monopolist practicing (perfect) price discrimination has

• a larger deadweight loss triangle than a single-price monopolist has

• he same deadweight loss triangle as a single-price monopolist

• a deadweight loss triangle one-half the size of what it would be with uniform pricing

• no deadweight loss triangle

Let D be the demand curve facing a perfectly price-discriminating monopolist. The marginalrevenue it receives from selling the 150th unit of good X sold equals

• $60

• $45

• $30

• $0, since it sells less than 150 units

Which of the following is not an assumption of oligopoly

• There are few sellers

• There are few buyers

• Firms produce and sell either homogeneous or differentiated products

• There are significant barriers to entry

Total cost of this profit maximizing monopolistic competitor is represented by the area

• 0P1AQ2

• 0P3CQ2

• P3P1AC.

• P4P1AD

Cartels often dissolve because

• their members often set a time limit as to how long the cartel should exist

• their members often cheat on the cartel agreements because they have incentive to

• their members often find that they do not earn as high profits from the cartel as they had hoped to

• firms in a cartel face different costs than firms outside a cartel