WorksheetsCoronaQuiz 3
Total questions: 20
Worksheet time: 5hrs 46mins
A firm in monopolistic competition will maximize short-run profits by producing the level of output at which:
P=MC
MR=MC
P=ATC
P=MR
_________ is the practice of selling ________ at different prices in different markets, without corresponding differences in costs.
price discrimination; the same product
price discrimination; different products
monopolizing; similar products
price fixing; different products
A perfectly competitive firm will not produce any output in the short run and will shut down if price is:
greater than marginal cost.
less than marginal cost.
less than average variable cost.
greater than average variable cost and less than average total cost.
If a perfectly competitive firm sells 30 units of output at a price of $10 per unit, its MARGINAL revenue is:
$10
$30
$300
$3
If a perfectly competitive firm sells 30 units of output at a price of $10 per unit, its TOTAL revenue is:
$10
$30
$300
$3
Pauli's Pizza offers the following prices: one slice for $2, two slices for $3.50, three slices for $4.50, four slices for $5.00. The marginal cost to the customer of the third slice is:
$4.50
$10
$1
$2
The slope of a long-run average total cost curve exhibiting diseconomies of scale is:
Zero
Infinite
Positive
Negative
Which of the following cost concepts is correctly defined?
ATC = VC + FC
TC = AVC + AFC
TC = AVC + MC
ATC = AVC + AFC
Which of the following cost concepts is correctly defined?
ATC = VC + FC
TC = AVC + AFC
TC = AVC + MC
TC = VC + FC
The marginal product of labor is:
the total output divided by the quantity of labor employed.
the change in output that occurs when capital increases by one unit.
the slope of the total product of labor curve.
the change in labor divided by the change in total product.
If the price of a good is increased by 15% and the quantity demanded changes by 20%, then the absolute value of the price elasticity of demand is equal to:
.75
1
approximately 1.33.
approximately 33.
A decrease in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
an increase; an increase
a decrease; a decrease
an increase; a decrease
a decrease; an increase
Suppose that supply increases and demand decreases. What is the most likely effect on price and quantity?
The price will increase, but quantity may increase, decrease, or stay the same.
The price will decrease, but quantity may increase, decrease, or stay the same.
The price may increase, decrease, or stay the same but quantity will increase.
The price will decrease and quantity will decrease.
An ambiguous change in price and a decrease in quantity are most likely caused
a shift to the left in supply and a shift to the left in demand.
a shift to the right in supply and a shift to the left in demand.
a shift to the left in supply and a shift to the right in demand.
a shift to the right in supply and a shift to the right in demand.
Suppose that the first four units of a variable input generate corresponding total outputs per period of 200, 350, 450, and 500, respectively. The marginal product of the second unit of input is:
150
350
550
100
Which of the following is true regarding monopolies?
Monopolies produce too much and charge too much from the standpoint of efficiency.
Monopolies usually are economically efficient because they have economic profits with which to work.
Monopolies produce too little and charge too much from the standpoint of efficiency.
Monopolies create an efficiency problem but are not associated with an equity problem.
Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, we expect that the market price will ________ and the output of a typical firm will ________.
rise; rise
rise; fall
fall; rise
fall; fall
The demand curve for a perfectly competitive firm is:
perfectly inelastic.
perfectly elastic.
downward-sloping.
relatively, but not perfectly elastic.
Suppose the price of cereal rose by 25% and the quantity of milk sold decreased by 50%. Then we know that the:
cross-price elasticity between cereal and milk is –2.
cross-price elasticity between cereal and milk is –0.5.
cross-price elasticity of demand for milk is 2.
price elasticity of demand for cereal is 0.5.
The income elasticity of demand of a normal good is:
between -1 and 0.
less than 0.
equal to 0.
greater than 0.
