MGE Quiz1 - A price-taking firm can exert no control over...

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A price-taking firm can exert no control over price because Correct Answer: E. Both C and D. Which of the following is NOT one of features characterizing market structures? Correct Answer: A. The level of capital investment in research and development. Economic profit is Correct Answer: D. The difference between total revenue and the opportunity cost of all of the resources used in production. question 4 A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results: Dependent Variable: T R-Square F-Ratio P-Value on F Observations: 27 0.7793 42.38 0.0001 Variable Parameter Estimate Standard Error T-Ratio P-Value Intercept 5150.43 1740.72 2.96 0.0068 G -480.92 130.66 -3.68 0.0012 U 211.0 75.0 2.81 0.0096 Which of the following is correct at the 5% level of significance? Correct Answer: D. All of the above. Question 5 1 out of 1 points If an analyst believes that more than one explanatory variable explains the variation in the dependent variable, what model should be used? Correct Answer: B. A multiple regression model. Question 7 1 out of 1 points Which of the following statements represents bad decision making? Correct Answer: E. All of the above.
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1 out of 1 points If profits depend on both how much is produced (output) and on the level of advertising, then a profit-maximizing firm should choose the levels of output and advertising at which: Selected Answer: D. Both A and B. Correct Answer: D. Both A and B. Question 9 1 out of 1 points Whenever the additional revenue from the last unit of output exceeds the additional cost of that unit, a profit- maximizing firm should: Correct Answer: A. Produce more in order to increase profits. Question 10 1 out of 1 points Marginal utility is Correct Answer: C. The change in utility that results from increasing the amount of a good consumed by one unit. Question 11 0 out of 1 points Which of the following is NOT a characteristic of a typical indifference curve? Selected Answer: A. The curve shows all combinations of goods that give the consumer the same level of utility. Correct Answer: D. The curve will shift out if income increases. Question 13 1 out of 1 points Suppose that the market for salad dressing is in equilibrium. Then the price of lettuce rises. What will happen? Correct Answer: A. The demand for salad dressing will decrease. Question 14 1 out of 1 points Use the following generalized linear demand relation to answer the question where M is income and is the price of a related good, R. If M = $15,000 and
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This note was uploaded on 04/02/2012 for the course MGE 302 taught by Professor Isse during the Spring '08 term at SUNY Buffalo.

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MGE Quiz1 - A price-taking firm can exert no control over...

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