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A firm bought a pizza over for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements is TRUE?
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If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 20 rand/US$, then
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At the current price of a good Al’s consumer surplus equals 8 and Ben’s consumer surplus equals 15. By using two-part pricing a monopolist could increase his profit by
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If a manager is unsure what the entire profit function looks like, then she can
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Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause
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Concerning an investment project which of the following is TRUE?
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If marginal revenue equals marginal cost, the firm is maximizing profits as long as
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If the inverse demand curve a monopoly faces is p = 100 – 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to
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If Stock A sometimes increases and sometimes decreases in value when Stock B increases in value at the same time, they are
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The government forcing a monopoly telecommunications company to allow other firms to use its cables is an attempt to
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In the market for used cars, if there is asymmetric information yet all cars sell for the same price
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The difference between producer surplus and profit is always the associated
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A change in a relevant factor other than the price of the good itself causes a ________ the demand curve, and a change in a good’s own price causes a ________ the demand curve.
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In the simplest version of the Cournot model, we assume
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One way to avoid the free rider problem is
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In a Bertrand model, market power is a function of
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The marginal rate of transformation of y for x represents
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If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 10 rand/US$, then
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If the demand function for orange juice is expressed as Q = 2000 – 500p, where Q is quantity in gallons and p is price per gallon measured in dollars, then the demand for orange juice has a unitary elasticity when price equals
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When a prisoners’ dilemma game is repeated a finite number of times (T)
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If a firm traded on the New York Stock Exchange posts an accounting profit of $10 million, then the firm is making a positive economic profit
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Which of the following is NOT a property of isoquants?
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Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p. If the long-run supply curve is horizontal, then how much will consumers spend, in total, on potatoes?
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A market’s structure is described by
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The imposition of a quota on an imported good
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Firms in an oligopolistic market ________ because they are ________.
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In regression analysis, the dependent variable
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An example of a market where a Bertrand model would be not be plausible is the market for
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If market price is greater than the minimum of AVC but below the minimum of AC, then
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The percentage change in the quantity supplied in response to a percentage change in the price is known as the
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In the presence of asymmetric information, a fixed-fee contract
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If average cost is positive
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A primary difference between rebates and coupons?
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Which of the following will cause the average fixed cost curve of making cigarettes to shift?
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Which is a behavioral economics justification for limiting advertising directed towards children?
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Suppose the production of DVD players can be represented by the following production function: q = . Which of the following statements is TRUE?
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A firm becomes a multinational enterprise when
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If capital is fixed, but a firm varies labor
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Einstein was quoted saying “Everything should be made as simple as possible, but not simpler.” When it comes to economic models this means that
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An interior solution to a consumer’s utility maximization problem implies
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If a firm is operating at an output level where losses are minimized the firm
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A firm’s managers are constrained by
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A microeconomic model CANNOT be used to
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If a person is risk neutral, then she
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What is one way firms can enforce tie-in sales?
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When there is a binding price floor
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