Question 1 In monopolistic competition, in the long run firms earn a normal profit and excess capacity have
Question 2 Advertising costs are fixed costs and cost per unit decreases as production increases.
Question 3 In the model of kinked demand curve, demand is less elastic well below the market price because if the company lowers the price, other companies lower their prices.
Question 4 In a dominant duopoly, the dominant firm acts as a monopoly, and produces output where marginal revenue equals marginal cost. Smaller companies in the market are price takers
Question 5 John von Neumann and Oskar Morgenstern are the creators of game theory.
Question 6 When farmers agree to produce less so they can raise prices and reap greater benefits, the agreement is called a collusive agreement
Question 7 A cartel is a group of companies who have made a collusive agreement.
Question 8 In a repeated game, the penalties that result in heavy damage are incentives for players to adopt strategies that result in a cooperative equilibrium.
Question 9 A firm in a contestable market gets a normal profit.
Question 10 The limitation of price discourages firms to enter the market potential to convince them to; incur an economic loss
Question 1 Monopolistic competition is a market in which many firms produce differentiated goods and services.
Question 2 The Netscape and Explorer browsers are examples of product differentiation
Question 3 A monopolistically competitive firm can increase its economic benefit by developing new products Question 4 The cost of selling a monopolistically competitive firm are greater than those of a competitive or a monopoly Question 5 A market structure in which compete for a small number of companies is called an oligopoly
Question 6 In game theory, the strategies include all possible actions of each player.
Question 7 A table showing the possible payoffs for each action of each player for each possible action the other player, called the payoff matrix
Question 8 As each player takes the best possible action given the action of his opponent, a player the other player refuses and confesses
Question 9 The result of the prisoner's dilemma game is a dominant strategy equilibrium in which both players lose
Question 10 A duopoly occurs when two producers of a particular product competing in the same market
Question 1 A copyright creates a monopoly by restricting market entry
Question 2 A patent creates a monopoly by restricting market entry
Question 3 Which of the following companies are more likely to be a monopoly? the local power distributor
Question 4 Where the application of a good or service limits the amount that can be sold to the production with which the firm experiences economies of scale, the company is a natural monopoly
Question 5 Firms can price discriminate between consumers do to maximize profits
Question 6 A single-price monopolist will produce the output level at which marginal revenue equals marginal cost
Question 7 The maximum amount that a form of rent paid by a monopoly is the economic benefit of monopoly
Question 8 A single-price monopoly causes a deadweight loss because it restricts the production
Question 9 Where a monopoly price discriminate perfectly, no consumer surplus
Question 10 A perfectly discriminating monopoly price gets higher output than a perfectly competitive industry
Question 1 A monopoly occurs when there is a barrier to entry to the industry
Question 2 When natural forces or legal work to protect a company from the competition, says the market has barriers to entry
Question 3 The granting of a patent or copyright creates a legal monopoly
Question 4 The existence of economies of scale creates a natural monopoly
Question 5 When Controlling Pizza is willing to sell a pizza to a student living on campus at a price lower than it is willing to sell a pizza identical to a student who lives a block off campus, the pizza company is practicing price discrimination
Question 6 a monopoly that sells each unit of production at the same price is a monopoly of one price
Question 7 Producer surplus equals the producer's income minus the opportunity cost of production
Question 8 The deadweight loss measures the market inefficiency and loss of consumer surplus plus producer surplus.
Question 9 The attempt to capture consumer surplus, producer surplus or economic benefit is called rent seeking
Question 10 Consumer surplus is the value that gives the consumer goods less price
Question 1 The smallest amount of product to which the long-run average cost is minimum efficient scale is the maximum of the company.
Question 2 Under perfect competition, a firm maximizes profit or economic benefit if you get the product at which price equals marginal cost
Question 3 Monkeys of Carlos is a company that makes soft toys for children. The market price of a monkey is $ 10 and Carlos produces 100 monkeys with an incremental cost of $ 11 per monkey. Carlos maximize its profit by producing less than 100 monkeys
Question 4 The supply curve of short-run industry is horizontal at the price at which firms closed
Question 5 If firms in a competitive industry positive economic profits, then there is an incentive for firms entering the industry.
Question 6 At present, companies in a perfectly competitive industry earn a profit. In the long run, firms enter the industry until all firms in the industry are earning zero economic profit
Question 7 In a competitive market, the market demand curve measures the marginal social benefit if any (n) no external benefit and the market supply curve measures the marginal cost if any (n) no external cost.
Question 8 When the price equals the marginal benefit consumers and the marginal cost of producing, trading profits are maximized.
Question 9 A competitive market in which companies pollute the environment, the amount produced is too large and the market does not achieve efficient
Question 10 The consumer surplus plus producer surplus equals the gains from trade
Question 1 In perfect competition there is no restriction to enter the industry
Question 2 Under perfect competition, each firm is price taker
Question 3 The profit or normal profit is included in the company's total cost
Question 4 The total income of a company less competitive total cost is equal to its value or economic benefit
Question 5 In the short term, businesses may incur economic losses but in the long term, organizations gain a profit or economic benefit equal to zero
Question 6 In perfect competition, marginal revenue of the company equals the market price
Question 7 When a competitive firm produces its output that maximizes profit or utility and is at its end, total revenue equals total variable cost of the company.
Question 8 In a competitive industry, when the plant size of each company and the number of firms are given, the quantity supplied by all firms at each price curve is shown in short supply within the industry
Question 9 The presence of external economies reduce the average costs of each company as the industry's product increases and the presence of external diseconomies increases average costs of each company as the industry's product increases.
Question 10 The supply curve of short-run industry shows how to vary the amounts offered by an industry to change the market price when the companies have made all possible adjustments.
Question 1 The figure illustrates the market for haircuts. Curve A is the marginal cost curve and the curve B is the marginal benefit curve
Question 2 When it produces 2,000 hamburgers a day, the $ 1.50 marginal benefit and marginal cost is $ 1.00. And when there are daily 7.500 hamburgers, the marginal benefit is $ 1.00 and the marginal cost is $ 1.50. The efficient production quantity of burgers is between 2,000 and 7,500 daily.
Question 3 If the marginal benefit of a loaf of bread exceeds the marginal cost of producing a loaf of bread, then resources will be used more efficiently if MAS bread is produced and less of other goods are produced.
Question 4 In the market for CDs, 500 CDs are available monthly. The value that people give the CD a month exceeds the opportunity cost of producing it. The use of resources is inefficient.
Question 5 Adam earns $ 25,000 a year and earns $ 45,000 per year Robert and both have the same marginal benefit curve. According to the utilitarian point of view, if you transfer a dollar of Robert Adam, then the marginal benefit of 3 Adam increases more than the marginal decrease in profit Roberto
Question 6 The figure informs us about the market for red roses. Consumer surplus is _____$ 200__ per day.
Question 7 The figure tells us the market of red roses. In Valentine, the demand for red roses doubles. If the flower price increase to $ 30 a dozen, consumer surplus decreases to zero
Question 8 The figure illustrates the market for hot dogs on the island of Bigfoot. Producer surplus is $ 60 per hour __
Question 9 If the marginal cost of producing a service increases, then the efficient amount to produce decreases.
Question 10 In the competitive market of ballooning, the marginal cost equals marginal benefit when performing daily 3.000 ballooning and the price of a trip is $ 130. Which of the following statements is true? 3 The deadweight loss is zero.
Question 1 If you increase your consumption of soft drinks in a can a week, the marginal benefit of the latter can is $ 1.00. The value of this last can of soda is $ 1.00.
Question 2 Which of the following statements is false? If the marginal benefit exceeds marginal cost, production is efficient.
Question 3 If you decrease the market price of a chair, but the demand for seats remains the same, then the consumer surplus increase.
Question 4 In the CD market, producer surplus will decrease by lowering the supply of CD
Question 5 In a competitive market which of the following statements is incorrect? The marginal benefit is the same as the opportunity cost.
Question 6 If the resources are used efficiently, then it maximizes consumer surplus plus producer surplus
Question 7 The provider's (s) _agua is likely to be a monopoly.
Question 8 The smoke inhaled by passive smokers is an example of an external cost
Question 9 The core moral principle of all religions is the founding principle of equity
Question 10 since insufficient health services, will create a deadweight loss that is greater than, less than or equal to the deadweight loss that would create excessive production.
Question 1 If a country can not produce more of one good without producing less of another good that people value most, then the efficient use of resources is
Question 2 The marginal benefit is the benefit received from consuming one more unit of a good or service
Question 3 Marginal cost is the value 3 of the best alternative discarded.
Question 4 The value of a bucket of ice is equal to all the following items, except the price paid by the bucket.
Question 5 Consumer surplus is the value of assets less its price.
Question 6 Producer surplus is the price of the goods less the opportunity cost of production
Question 7 Utilitarianism is a principle whose goal is the greatest happiness for the greatest number
Question 8 A cost borne by the producer but not by other people is called an external cost.
Question 9 An external benefit is a benefit that accrues to someone other purchaser of a good
Question 10 A inefficient levels of production, the deadweight loss occurs.
Question 1 The figure illustrates the demand for hamburgers. When the price is $ 1.00 burger, the elasticity of demand is _40-40 and an increase of 1% of the amount precio_disminuira hamburger demand 040%.
Question 2 A shrinking supply of sugar increases the price of $ 0.95 to $ 1.05 package package. The amount decreases of 55 packages a day to 45 packs a day. The price elasticity of demand for sugar is 2.0.
Question 3 Suppose that tax accountants increase the price of its service 20%. The short-term demand for their services is less elastic than long-term demand in the long run because consumers will find other ways to calculate the income tax to pay their fair share
Question 4 The figure shows the demand for magazines. Magazine vendors maximize their total income when they sell magazines 375 daily
Question 5 When the price is $ 5.00 Caesar salad, Caesar salad demand is elastic and when the price is $ 4.00, elasticity of demand is one. If Miguel's Restaurant lowers the price of $ 5.00 to $ 4.00, your total income increased Caesar salads.
Question 6 The figure shows the demand for peanuts. If the price drops from $ 12 to $ 9 bag, total revenue increased, but if the price rises from $ 3 to $ 6 per bag, total revenue increased.
Question 7 If coffee and tea are substitutes the cross elasticity of coffee for the price of tea will be positive and an increase in the price of tea increased the demand for coffee.
Question 8 If a 5% increase in the price of good A leads to a decrease of 4% of demand for good B, then the goods are complements
Question 9 The income elasticity of demand for vacation is 5. If revenues increase 3% next year, the quantity demanded of today's family vacation, increased by 15%.
Question 10 If a change of 10% of the price of goods leads to a 5% percentage change in quantity supplied, then the supply of good is inelastic and the elasticity of supply is 0.5
Question 1 The figure shows the demand curve palettes. The price elasticity of demand when the price of a pallet increases from $ 0.30 to $ 0.50 is 2.2
Question 2 The figure illustrates the demand for books of Anne For $ 15 per book, demand is inelastic Anne books.
Question 3 colas are more close substitutes than other soft drinks. The price elasticity of demand is greater than cola-price elasticity of demand for other refreshments.
Question 4 The figure shows the demand for eggs. At what price sellers maximize their total income? $ 0.75 per dozen
Question 5 The price elasticity of demand for videos is 4. If the price of a video increases 2% the quantity demanded will decrease 8%.
Question 6 Market Strawberry Sara maximizes its total revenue by selling strawberries at $ 1.25 the basket. At a price of $ 1.25 you predict that the demand for strawberries has elasticity equal to one
Question 7 donuts and coffee are complements. When you increase the price of a donut, coffee demand decreases and the cross-elasticity of demand for coffee for the price of a donut is negative.
Question 8 If when income increases 15% and the price is unchanged, the quantity demanded of air travel increases 60% then the income elasticity of demand for air travel is 4:00.
Question 9 The figure shows the relationship between the income of Moira and the amount of macaroni which she claims. When income is below $ 350 a month, the macaroni is a normal good
Question 10 The table presents some data on the supply of roses in a small town. As the price rises to $ 15 per dozen to $ 25 a dozen, the elasticity 0.80
Question 1 The price of a bus trip down, but the total income of the bus company does not change. The demand for bus travel is give one
Question 2 A Martin likes chocolate truffles. As prices go up a chocolate truffle from $ 1 to $ 2 to $ 3, Martin continues to buy a dozen chocolate truffles a week. The demand for chocolate truffles Martin is perfectly inelastic
Question 3 Daniel sells newspapers. Daniel says that an increase of 10% of a newspaper will cause a decrease of 8% the quantity demanded of newspapers. According to Daniel, the demand for newspapers is inelastic.
Question 4 When demand is elastic, a price decrease increases total revenue.
Question 5 Webster and Oxford dictionaries are close substitutes. The price elasticity of demand is almost infinite Webster dictionaries
Question 6 blue feathers and black feathers are close substitutes. The cross elasticity of demand of black feathers on the price of blue feathers is positive.
Question 7 If the cross elasticity of demand for goods X and Y is positive and that of goods X and Z is negative, then X and Y are substitutes and X and Z are; ons
Question 8 of the following goods, U.S. demand for cruises in the Mediterranean has the income elasticity of demand greater.
Question 9 As Mary's income rises 20%, 10% increased their demand for tickets for games of National Hockey League. Ticket demand is inelastic Mary, for Mary, hockey tickets are a normal good
Question 10 In the short term the supply of lettuce will be less elastic than the supply in the long run and more elastic than the current bid.
Question 1 The price elasticity of demand equals the percentage change in quantity demanded divided by the percentage change in price
Question 2 When the percentage change in quantity demanded is greater than the percentage change in price, demand for the good is elastic.
Question 3 When demand for a good is perfectly inelastic, the price elasticity of demand is greater than 1
Question 4 If the demand for a good is inelastic, the price elasticity of demand is between 0 and 1
Question 5 If the demand for a good is perfectly elastic, the price elasticity of demand is infinite and the demand curve is horizontal.
Question 6 When supply of a good falls, the price of the good rises and the total income from the sale of the property may increase or decrease
Question 7 When demand for a good is elastic and its price increases, total revenue from the sale of the property will decrease.
Question 8 Because toothpaste and toothbrushes are complements, the cross elasticity of demand is negative.
Question 9 The taxi fares and haircuts are normal goods. The income elasticity of demand is positive.
Question 10 A luxury is a good or service with demand is income elastic and a need is a good or service with a demand that is inelastic to income