Final Exam Microeconomics

Final Exam Microeconomics - Week 4: Chapters 1417 - FINAL...

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Week 4: Chapters 14- 17 - FINAL exam Help Time Remaining: 1. Price discrimination is _____. (Points: 4) illegal in most economically developed nations very rare in a market economy common in a competitive economy all of the above 2. Market power is the ability _____. (Points: 4) to set prices and quantities sold of capitalists to exploit the working classes to set prices all of the above 3. Which of the items below are examples of monopolistic competition, also known as imperfect competition? (Points: 4) patent, copyright, and trademark professional licensing and labor unions local shops and restaurants all of the above none of the above 4. In what kind of market is a firm un able to influence the price of its output? (Points: 4) price maker monopoly imperfect monopoly perfectly competitive 5. When the quantity sold of a good changes significantly in response to changes in price, its demand is _____. (Points: 4)
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identical to his supply curve identical to marginal cost highly elastic highly inelastic 6. When a firm's marginal revenues are higher than its marginal cost, (Points: 4) it is operating below its optimal capacity it is operating above its optimal capacity it is operating at its optimal capacity all of the above 7. The primary goal of a firm is to _____. (Points: 4) minimize cost maximize revenue maximize profit all of the above 8. Which of the following most nearly approximates a perfectly competitive market? (Points: 4) products with brand names that are sold in many different stores commodities, like wheat, rice, and gold products that are very close substitutes for each other, like Coke and Pepsi all of the above 9. Profit equals _____. (Points: 4) total revenue minus total cost total revenue minus marginal cost marginal revenue minus marginal cost gross revenue minus depreciation 10. Marginal cost is _____. (Points: 4) a small cost that does not affect a firm's profit significantly the cost of increasing the margin between cost and price the cost of producing the next unit of output all of the above 11. A good that is non-excludable and non-rival in consumption is called a(n): (Points: 4) public good commodity oligopoly good monopoly good
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12. The "Prisoner's Dilemma" illustrates: (Points: 4) The lack of cooperation among firms in a competitive market The lack of cooperation among firms in a monopolistic market The lack of cooperation between a monopoly and its customers why, in an oligopoly market, cooperation is difficult to achieve even when it is mutually beneficial 13. Advertising is a natural feature of _____. (Points: 4) monopolistic competition perfect competition public good monopoly 14. A cartel arrangement is likely to be successful for its members only if it can _____. (Points: 4) let members produce at full capacity and sell all of their output to the other cartel members monitor the cartel members and enforce the arrangement get the government to pass antitrust legislation do all of the above 15. A single firm that can supply a good or service to an entire market at a smaller cost than two
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This note was uploaded on 10/30/2011 for the course MAN 6608 taught by Professor Sharonrogers during the Spring '11 term at FIU.

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Final Exam Microeconomics - Week 4: Chapters 1417 - FINAL...

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