ANSWERS - ID: A practice exam Answer Section MULTIPLE...

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ID: A 1 practice exam Answer Section MULTIPLE CHOICE 1. ANS: B A competitive firm is a price taker and a monopoly is a price maker. DIF: 1 REF: SECTION: 15.1 OBJ: TYPE: M 2. ANS: B (ii) only DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 3. ANS: C Meatball prices will exceed marginal cost. DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 4. ANS: B be less than the price per unit of its product. DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 5. ANS: A (i) only DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 6. ANS: A (i) only DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 7. ANS: D All of the above are correct. DIF: 1 REF: SECTION: 15.1 OBJ: TYPE: M 8. ANS: A (i) and (ii) DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 9. ANS: C barriers to entry. DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 10. ANS: D All of the above are correct. DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M
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ID: A 2 11. ANS: B there are economies of scale over the relevant range of output. DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 12. ANS: B government-created monopolies. DIF: 1 REF: SECTION: 15.1 OBJ: TYPE: M 13. ANS: B natural monopoly DIF: 2 REF: SECTION: 15.1 OBJ: TYPE: M 14. ANS: C negative when the price effect is greater than the output effect. DIF: 3 REF: SECTION: 15.2 OBJ: TYPE: M 15. ANS: C marginal revenue is equal to marginal cost. DIF: 2 REF: SECTION: 15.2 OBJ: TYPE: M 16. ANS: A P > MR = MC. DIF: 2 REF: SECTION: 15.2 OBJ: TYPE: M 17. ANS: B triangle bge DIF: 2 REF: SECTION: 15.3 OBJ: TYPE: M 18. ANS: B triangle bge. DIF: 2 REF: SECTION: 15.3 OBJ: TYPE: M 19. ANS: C above marginal cost. DIF: 2 REF: SECTION: 15.3 OBJ: TYPE: M 20. ANS: B the price of output to be higher. DIF: 2 REF: SECTION: 15.3 OBJ: TYPE: M 21. ANS: C 150 units of output and a price of $15 per unit DIF: 2 REF: SECTION: 15.3 OBJ: TYPE: M
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ID: A 3 22. ANS: B 100 units of output and a price of $20 per unit DIF: 2 REF: SECTION: 15.3 OBJ: TYPE: M 23. ANS: D cannot be determined from the diagram. DIF: 2 REF: SECTION: 15.3 OBJ: TYPE: M 24. ANS: C $250. DIF: 3 REF: SECTION: 15.3 OBJ: TYPE: M 25. ANS: C price = $150; profit = $450,000 DIF: 2 REF: SECTION: 15.5 OBJ: TYPE: M 26. ANS: C $850,000 DIF: 2 REF: SECTION: 15.5 OBJ: TYPE: M 27. ANS: B $400,000 DIF: 2 REF: SECTION: 15.5 OBJ: TYPE: M 28. ANS: D oligopoly markets. DIF: 1 REF: SECTION: 16.1 OBJ: TYPE: M 29. ANS: A there are only a few sellers, each offering a product similar or identical to the others. DIF: 2 REF: SECTION: 16.1 OBJ: TYPE: M 30. ANS: B imperfectly competitive markets. DIF: 1 REF: SECTION: 16.1 OBJ: TYPE: M 31. ANS: C there are at least a few firms that compete with one another. DIF: 2 REF: SECTION: 16.1 OBJ: TYPE: M 32. ANS: D a duopoly. DIF: 1 REF: SECTION: 16.2 OBJ: TYPE: M
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ID: A 4 33. ANS: B $60 DIF: 2 REF: SECTION: 16.2 OBJ: TYPE: M 34. ANS: B P = $60, Q = 9,000 DIF: 2 REF: SECTION: 16.2 OBJ: TYPE: M 35. ANS: A $170,000 DIF: 2 REF: SECTION: 16.2 OBJ: TYPE: M 36. ANS: D 12,000 DIF: 2 REF: SECTION: 16.2 OBJ: TYPE: M 37. ANS: A $40 DIF: 2 REF: SECTION: 16.12 OBJ: TYPE: M 38. ANS: B $140,000 DIF: 1 REF: SECTION: 16.2
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This note was uploaded on 09/08/2010 for the course ECON 1B at San Jose State University .

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ANSWERS - ID: A practice exam Answer Section MULTIPLE...

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