For a monopolist, price _______ marginal revenue.

is first greater than and then less than

The demand curve faced by a monopolist

is less elastic than that faced by a single perfectly competitive firm.

may be either more or less elastic than that faced by a single perfectly competitive firm.

is more elastic than that faced by a single perfectly competitive firm.

has the same elasticity as that faced by a single perfectly competitive firm.

If a monopolist had no costs, the best possible price would be where demand is

relatively (but not perfectly) elastic.

relatively (but not completely) inelastic.

The kinked demand curve faced by an oligopolist is based on the assumption that

rivals will follow a price decrease but not a price increase.

rivals will follow a price increase but not a price cut.

rivals will follow both a price decrease and a price increase.

rivals will ignore both a price increase and a price decrease.

The basic behavioral assumption of the Cournot model is

each duopolist assumes that his or her rivals’ output is invariant with respect to his or her own output.

each duopolist assumes that his or her rival’s price is invariant with respect to his or her own price.

duopolists recognize their mutual interdependence and agree to act in unison.

each duopolist assumes that if he or she lowers the price, his or her rivals will do the same but that if he or she raises the price, his or her rivals may not follow suit.

A typical Cournot solution is defined as

one in which the output is above the monopoly and below the purely competitive result.

one in which the solution is identical to the purely competitive market.

one in which the solution is identical to the monopoly solution.

One would expect that collusion among oligopolistic producers would be easiest to achieve in which of the following cases?

A very few firms producing a homogeneous product.

A rather large number of firms producing a differentiated product.

A very few firms producing a differentiated product.

A rather large number of firms producing a homogeneous product.

Refer to Table 2. Firm Aʹs dominant strategy is

Firm A does not have a dominant strategy.

Refer to Table 2. What is the Nash equilibrium in the game?

(Donʹt Advertise, Donʹt Advertise)

External benefits refer to

benefits that accrue to parties other than the producer and buyer of a good.

the benefits that a supplier obtains from production and sale of a good.

the benefits that a consumer receives from buying a good.

the combined benefits that buyer and seller receive from a voluntary market transaction.

The creation of a market for pollution rights would

stimulate the search for pollution-reducing technologies.

induce an increase in the supply of pollution rights.

be in conflict with the concept of user charges.

The market system fails to produce public goods because

private firms cannot restrict the benefits of the such goods to consumers who pay for them.

there is no demand for such goods.

public enterprises can produce such goods at lower costs than can private enterprises.

their production causes negative externalities.

As it applies to insurance, the adverse selection problem is the tendency for

those most likely to collect on insurance to buy it.

those who buy insurance to take less precaution in avoiding the insured risk.

sellers to restrict output and charge high prices.

Which of the following is correct?

A perfectly competitive firm is a price taker and a monopolist is a price maker.

Both perfectly competitive and monopolistic firms are price takers.

Both perfectly competitive and monopolistic firms are price makers.

A perfectly competitive firm is a price maker and a monopolist is a price taker.

Education makes Chris a better worker, voter, parent, and citizen. Because the benefits from education go beyond those that Chris enjoys himself, education provides

positive externalities and should be subsidized

negative externalities and should be taxed

positive externalities and should be taxed

negative externalities and should be subsidized

Public goods represent a market failure because

by their very nature they are nonexcludable and nonrival which makes it difficult for the private sector to supply them profitably.

they are provided by firms with market power.

negative externalities are created through their production.

there is incomplete information regarding their quality.

One reason to require licensing of medical practitioners is that medical care

buyers lack perfect information.

involves substantial externalities.

What is the primary role of signaling in labor markets?

To provide information about a worker's skills or qualifications to potential employers

To ensure that all workers are paid the same

To reduce the need for education and training

To allow workers to set their own wages

Which of the following is an example of signaling in the context of used car sales?

Offering a warranty on the car to increase buyer confidence

Pricing the car significantly below market value

Giving the buyer a discount on future purchases

Which of the following statements is correct about signaling?

ignaling is costly but it also improves information in the market, so it may decrease or increase efficiency.

Signaling is costly, so it reduces efficiency.

Signaling improves information in the market, so it increases efficiency.

Signaling has no impact on efficiency.

An education level e would be a credible signal in the labor market if

The high productivity type would want to obtain e, but the low productivity type would not.

The low productivity type would want to obtain e, but the high productivity type would not.

Both the high and the low productivity types would want to obtain e

Both the high and the low productivity types would not want to obtain e.

tiếng anh 41-80

Authored by Huyền Trịnh

History

Vocational training

Used 1+ times

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40 questions

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MULTIPLE CHOICE QUESTION

5 mins • 1 pt

A competitive firm in the short run can determine the profit maximizing (or loss minimizing) output by equating

price and average total cost

price and marginal cost

marginal revenue and price

marginal revenue and average total cost

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

For a competitive firm the demand curve

is horizontal

coincides with the marginal revenue curve.

coincides with the average revenue curve.

all of the above.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

In the short run, if price falls, the perfectly competitive firm will respond by

shutting down.

equating average variable cost to marginal revenue.

reducing output along its marginal cost curve as long as marginal revenue exceeds average variable cost.

none of the above.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

The short-run supply curve for a competitive industry is derived by

horizontally summing the marginal cost curves for each firm in the industry.

horizontally summing the average variable cost curves for each firm in the industry.

vertically summing the marginal cost curves for each firm in the industry.

none of the above.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

A competitive firm short-run supply curve:

is its ATC curve.

is its MC curve.

is the section of its MC curve which lies above the ATCmin.

is the section of its MC curve which lies above the AVCmin.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

In the short run, no firm operates with a loss, unless

variable cost equals fixed cost.

variable cost falls short of fixed cost.

total revenue covers variable costs.

total revenue covers fixed cost.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

In perfect competition, when economic profits exist in the short run, they are very tenuous because

costs will inevitably increase and eliminate profit.

price will fall because market supply will increase.

firms are driven to increase output in the short run to the point where average total cost will equal price.

firms are driven in the short run to reduce output until average total cost equals price.

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tiếng anh 41-80

A competitive firm in the short run can determine the profit maximizing (or loss minimizing) output by equating

For a competitive firm the demand curve

In the short run, if price falls, the perfectly competitive firm will respond by

The short-run supply curve for a competitive industry is derived by

A competitive firm short-run supply curve:

In the short run, no firm operates with a loss, unless

In perfect competition, when economic profits exist in the short run, they are very tenuous because

For a monopolist, price _______ marginal revenue.

The demand curve faced by a monopolist

A monopolist is selling 6 units at a price of $12. If the marginal revenue of the seventh unit is $5, the price of the seventh unit is

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