User Account

All Pages

Perfectly price-discriminatithe decision to raise production

Assignment Help Macroeconomics
Reference no: EM13841593

Multiple-choice questions - choose the best answer

1. Suppose Wave detergent is sold in a monopolistically competitive market. If the price of Wave detergent is currently $6 and the ATC is $4, in the long-run we expect

a. The demand curve for Wave to shift to the left

b. The demand curve for Wave to shift to the right

c. The producers of Wave to go out of business

d. The producers of Wave to earn economic profits greater than zero

e. The producers of Wave to earn economic losses

2. For the noncolluding oligopolist, there are two factors that affect the decision to raise production.

These factors are

a. the output effect and the price effect.

b. the cost effect and the price effect.

c. the production effect and the output effect.

d. the output effect and the cost effect.

3. Compared to perfectly competitive firms, oligopolies are

a. more likely to consider the actions of other firms

b. less likely to consider the actions of other firms

c. neither more nor less likely to consider the actions of other firms

d. likely to produce more than the socially optimal amount of output

4. A firm cannot price discriminate if it

a. has perfect information about consumer demand.

b. operates in a competitive market

c. faces a downward-sloping demand curve.

d. is regulated by the government.

5. In the long run, there will be no unexploited scale economies (excess capacity) in

a. competitive markets

b. monopolistically competitive markets

c. oligopoly markets

d. monopoly markets

6. A market force that can prevent firms from price discriminating is

a. arbitrage.

b. fluctuating resource prices.

c. high fixed costs.

d. all of the above.

7. As a group, oligopolists would always be best off if they would

a. produce more than the perfectly competitive quantity of output.

b. charge the same price that a monopolist would charge if the market were a monopoly.

c. produce the perfectly competitive quantity of output.

d. operate according to their own individual self-interests.

8. A perfectly price-discriminating monopolist is able to

a. exercise illegal preferences regarding the race and/or gender of its employees.

b. maximize profit and produce a socially-optimal level of output.

c. maximize profit, but not produce a socially-optimal level of output.

d. produce a socially-optimal level of output, but not maximize profit.

Reference no: EM13841593

Questions Cloud

Program that convert temperature in fahrenheit : Write a program that will convert a temperature in Fahrenheit to Celsius and Kelvin. The temperature to convert should be captured from user input. The formulas for converting the temperatures are:
Programming assignment : Build a Dictionary on top of a Bag built on top of an
Can fey successfully sue the racquet stringer : Fey seeks your advice. Can she successfully sue the racquet stringer for the $20,000 which she has clearly lost as a result of his faulty work? Advise Fey.
Write about leaadership : Write about leaadership
Perfectly price-discriminatithe decision to raise production : the noncolluding oligopolist, there are two factors that affect the decision to raise production - Compared to perfectly competitive firms
Describe the steps in crime scene processing and analysis : What is the crime scene processing versus crime scene analysis? Describe the steps in crime scene processing and analysis. What is the purpose of the initial scene survey? What are some types of scene searches and to what kinds of scene are they appl..
Calculate the amount due for rentals : Design and code a project to calculate the amount due for rentals. Movies may be in VHS (videotape) format or DVD format. Videotapes rent for $1.80 each and DVDs rent for $2.50. New releases are $3 for DVD and $2 for VHS.
Java program that reads from standard input : Write a JAVA program that reads from the standard input stream (System.in) the order of cards in a deck and outputs who will win as well as the number of rounds played. It is assumed that there are two players, Player 0 and Player 1.
Describes the service program for helping customers keep : describes the service program for helping customers keep

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain how can you use this information to your advantage

You are a pharmacist in a small town. Explain how can you use this information to your advantage.

  Find level of production

What is the optimal level of production of wine decanters? Verify that this level of output maximizes not minimizes profit

  Determine marginal productivity of labor

To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of ¥1,470. In the study of its production process and markets where capital is procured, suppose that Mitsubishi determines that its marginal productivity of capital is ..

  Calculate irr on a home using companys insulated concrete

However, using these new concrete forms adds 10% to the overall cost of the home. A typical 2,000 sq. ft. home using standard concrete forms costs $120 per square foot to construct and uses $300 per month average to heat and cool. Calculate the IR..

  Utilizing starbucks as the organization structure

Utilizing Starbucks as the organization, please help identify the market structure of the organization. Evaluate the effectiveness of this structure for the organization.

  Microeconomic and macroeconomic phenomenon

Determine the main differences in microeconomics and macroeconomics? Give an example of a microeconomic and macroeconomic phenomenon.

  Describe the opportunity cost

They produce fewer pounds of choice meat per carcass. More than a third of the animal is ground up into buffalo burger, meat too lean to make good patties.

  Suppose that fiscal policy changes output faster than

Suppose that fiscal policy changes output faster than it changes the price level. How might such timing play a role in the theory of political business cycles? Is this a valid role for fiscal policy?

  Aggregate supply aggregate demand graphs

You observe that output is above full-employment output. Politicians are discussing about the possible reasons. One party claims that this is due to a drop in world oil prices.

  Identify buyers and sellers as well as the goods or services

Choose a market for a good in your area that seems to be a perfectly competitive market. Identify the buyers and sellers as well as the goods or services. How closely do real world conditions match the characteristics listed in the model

  Expectations theory

Disclose what the book suggests once the short-term rate is much cheaper than the long-term in interest rate. Substantiate whether or not that is a normal occurrence or a cause for alarm.

  Buying or selling long-term treasury bonds

The Fed can change the money supply by buying or selling long-term Treasury bonds. Purchasing long-term securities is commonly called

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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