Answer Correct Answer:Your local water company Question 12 For a firm, at the output level at which marginal revenue equals marginal cost,Answer Correct Answer:Profits are highest Question 13 If the demand curve faced by a firm is downward sloping and the market price of the product is above marginal cost of production, which of the following is correct?Answer Correct Answer:Not enough of the economy's resources are being allocated to producing the good Question 14 Approximately what percent of sales in the United States are made by corporations?
Answer Correct Answer:90 Question 15 A pure monopoly industry has a 4-firm concentration ratio equal toAnswer Correct Answer:1.0 Question 16 In a monopsony, the difference between the marginal revenue product of labor and the wage rate is known asAnswer Correct Answer:Monopsonistic profit Question 17 Today, the primary source of revenue for most major league clubs isAnswer Correct Answer:
Broadcast rights Question 18 A profit maximizing sports club will hire players up to the point where theAnswer Correct Answer:Marginal revenue product of labor equals the marginal cost of labor Question 19 In a resource market,Answer Correct Answer:Buyers and sellers exchange factors of production Question 20 Which of the following conditions can give rise to a monopsony employer?Answer Correct Answer:Immobile workers with highly specialized skills Question 21
In the resource market, professional sports clubs must face theAnswer Correct Answer:Upward sloping market supply of labor curve Question 22 One way in which professional sports leagues enforce the monopsonistic employment of players is throughAnswer Correct Answer:Salary caps Question 23 A professional sports league can maximize the revenue it generates from selling broadcast rights by playing enough games such thatAnswer Correct Answer:Marginal revenue equals marginal costs Question 24 Which of the following releases professional athletes from some of the monopsony powers of the sports leagues?Answer
Correct Answer:Free agency Question 25 Which of the following factors reduces the monopsony power of professional sports teams in the employment of players?Answer Correct Answer:Free agency Question 26 For a cartel, theAnswer Correct Answer:Marginal revenue curve lies below the demand curve Question 27 Professional sports clubs differ from most other business firms in theirAnswer Correct Answer:Organizational structure and relationship with employees
Question 28 Which of the following is a work stoppage initiated by management?Answer Correct Answer:Lockout Question 29 The additional revenue that a player generates for his employing team is calledAnswer Correct Answer:Marginal revenue product Question 30 The difference between a worker's contribution to the firm's receipts and the wage isAnswer Correct Answer:Monopsony profit
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