1 in which market model would there be a unique product

Assignment Help Business Economics
Reference no: EM13376989

1. In which market model would there be a unique product for which there are no close substitutes?

a. Monopolistic competition
b. Pure competition
c. Pure monopoly
d. Oligopoly

2. In which two market models would advertising be used most often? 
a. Pure competition and monopolistic competition
b. Pure competition and pure monopoly
c. Monopolistic competition and oligopoly
d. Pure monopoly and oligopoly

3. The steel and automobile industries would be examples of which market model? 
a. Monopolistic competition
b. Pure competition
c. Pure monopoly
d. Oligopoly

4. The demand curve faced by a purely competitive firm 
a. has unitary elasticity.
b. yields constant total revenues even when price changes.
c. is identical to the market demand curve.
d. is the same as its marginal revenue curve.

5. Let us suppose Harry's, a local supplier of chili and pizza, has the following revenue-and-cost structure:                                          Total Revenue $3,000 Per Week                                                                                                                                                              Total Variable Cost $2,000 Per Week                                                                                                                                                       Total Fixed Costs $2,000 Per Week


a. Harry's should stay open in the long run.
b. Harry's should shut down in the short run.
c. Harry's should stay open in the short run.
d. Harry's should shut down in the short run but reopen in the long run.

6. A firm should always continue to operate at a loss in the short run if 
a. the firm will show a profit.
b. the owner enjoys helping her customers.
c. it can cover its variable costs and some of its fixed costs.
d. the firm cannot produce any other products more profitably.

7. The short-run supply curve for a competitive firm is the 
a. entire MC curve.
b. segment of the MC curve lying below the AVC curve.
c. segment of the MC curve lying above the AVC curve.
d. segment of the AVC curve lying to the right of the MC curve.

8. The classic example of a private, unregulated monopoly is 
a. Xerox.
b. De Beers.
c. General Motors.
d. General Electric.

9. Which of the following is a barrier to entry? 
a. Patents
b. Revenue maximization
c. Profit maximization
d. Elastic product demand

10. The demand curve confronting a nondiscriminating, pure monopolist is 
a. horizontal.
b. the same as the industry's demand curve.
c. more elastic than the demand curve confronting a competitive firm.
d. derived by vertically summing the individual demand curves for the buyers.

11. Which case below best represents a case of price discrimination? 
a. An insurance company offers discounts to safe drivers.
b. A major airline sells tickets to senior citizens at lower prices than to other passengers.
c. A professional baseball team pays two players with identical batting averages different salaries.
d. A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants.

12. Which of the following is a characteristic of monopolistic competition? 
a. Standardized product
b. Relatively small number of firms
c. Absence of nonprice competition
d. Relatively easy entry

13. Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will 
a. reduce the excess capacity in the industry as firms expand production.
b. attract other firms to enter the industry, causing the firm's profits to shrink.
c. cause firms to standardize their product to limit the degree of competition.
d. make the industry allocatively efficient as each firm seeks to maintain its profits.

14. The characteristic most closely associated with oligopoly is 
a. easy entry into the industry.
b. a few large producers.
c. product standardization.
d. no control over price.

15. A high concentration ratio indicates that 
a. the industry is highly profitable.
b. the industry is highly competitive.
c. many firms produce most of the output in an industry.
d. few firms produce most of the output in an industry.

16. A major reason that firms form a cartel is to 
a. reduce the elasticity of demand for the product.
b. enlarge the market share for each producer.
c. minimize the costs of production.
d. maximize joint profits.

17. Which of the following is a land resource? 
a. A farmer
b. An oil-drilling rig
c. A machine for detecting earthquakes
d. Natural gas

18. Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game

Price per Ticket

Quantity Demanded

$13

1,000

11

2,000

9

3,000

7

4,000

5

5,000

3

6,000

a. varies inversely with ticket prices.
b. varies directly with ticket prices.
c. is perfectly inelastic.
d. is perfectly elastic.

19. Which of the following goods (with their respective income-elasticity coefficients in parentheses) will most likely suffer a decline in demand during a recession? 
a. Dinner at a nice restaurant (+1.8)
b. Chicken purchased at the grocery store for preparation at home (+0.25)
c. Facial tissue (+0.6)
d. Plasma-screen and LCD TVs (+4.2)

20. In the diagram Curves 1, 2, and 3 represent
curves figure 1

Graph Description

a. average variable cost, marginal cost, and average fixed cost, respectively.
b. total variable cost, total fixed cost, and total cost, respectively.
c. total fixed cost, total variable cost, and total cost, respectively.
d. marginal product, average variable cost, and average total cost, respectively.

21. Refer to the diagram. Points A, B, C, D, and E show
points diagram1

Graph Description

a. that the opportunity cost of bicycles increases, while that of computers is constant.
b. combinations of bicycles and computers that society can produce by using its resources efficiently.
c. that the opportunity cost of computers increases, while that of bicycles is constant.
d. that society's demand for computers is greater than its demand for bicycles.

22. What type of barrier to entry was used by De Beers throughout much of its history to maintain its monopoly position? 
a. Patent protection
b. Government regulation
c. Economies of scale
d. Ownership of an essential resource

Reference no: EM13376989

Questions Cloud

Suppose you own a taxi company in new york city assume : suppose you own a taxi company in new york city. assume further the taxi industry in nyc is described by a perfectly
There are 4 general market structures detailed in this : there are 4 general market structures detailed in this sectiona. perfect competitionb. monopolyc. monopolistic
1 an asset is to be used in a project that will last 5 : 1 an asset is to be used in a project that will last 5 years. the macrs property class for this asset is 3 years. if b
Assignment 1 - the three-step writing : assignment 1 - the three-step writing processinstructionsthis assignment is divided into three parts each corresponding
1 in which market model would there be a unique product : 1. in which market model would there be a unique product for which there are no close substitutes?a. monopolistic
Goodwill is reported on a consolidated balance sheet only : goodwill is reported on a consolidated balance sheet only if it was acquired in the merger or acquisition.nbspnbsp
Financial accounting project your board of directors has : financial accounting project your board of directors has requested that you prepare a special report addressed to them.
Verify the law of multiple proportions for an element x : verify the law of multiple proportions for an element x which forms oxides having percentages of x equal to 77.4
Problem 1 required in the space below describe the : problem 1 required in the space below describe the advantages of budgeting.problem 2 required compute the roi for

Reviews

Write a Review

Business Economics Questions & Answers

  State utility commissions typically regulate local phone

the rival long-distance carriers have complained that the local phone company repair persons have put peanut butter on rival long distance carriers's phone lines to encourage rats to eat through the lines.

  Which of the subsequent represents a positive macroeconomic

Which of the subsequent represents a positive macroeconomic statement. Assume the United States can produce Toyotas at the cost.

  Does the overall production technology now have increasing

You can now think of the firm as using two additional inputs, pollution vouchers and smokestack filters, to produce x output legally. Does the overall production technology now have increasing, constant, or decreasing returns to scale?

  The economy''s factors of production

The economy's factors of production are not equally suitable for producing different types of goods. This principle generates:

  Should we reduce or eliminate taxes

Should we reduce or eliminate taxes on corporate profits in the United States to lure more of these companies back to the U.S.?

  What are the potential ethical or moral effects of the

What are the potential ethical or moral effects of the organization’s social initiative or potential social initiative?

  Monetary expansion caused all prices in mexico to double

What would the' peso- dollar exchange rate be if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose.

  David black representing the management of the automobile

David black, representing the management of the automobile manufacturers disagreed with McDonald's assessment. Black cited studies that indicated price elasticity's ranging from 0.5 to 1.5.

  Independent auditors requirement

During much of the 19th century in Great Britain, independent auditors were not only allowed to have an equity interest in their customers but were needed to invest in their clients in certains circumstances.

  Why the market system has failed

Crew Brew of Wisconsin plans to build a microbrewery on a small stream in that state. After sampling water from the stream, Chris Pierson has found that it is contaminated with pulp and paper waste from a local paper mill.

  Illustrate what is your break-even price

If you receive a request for proposal (RFP) on a project for four units, illustrate what is your break-even price.

  Alinsky, rules for radicals

Alinsky, Rules for Radicals, pp. Oct. Models of Power CASE: What a Star-What a Jerk (Classpak #1). Case questions: - What, if anything, is Andys problem? - What, if anything, should Jane do about Andy?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd