Chapter 4 Quiz
1
A worker's total earnings for one day are $500. He receives a $100 fixed payment and
consumes 16 hours of leisure. What is the hourly wage rate?
A) $10.
B) $28.
C) $50.
D) $8.
2
A decrease in the price of good X will have what effect on t
Chapter 5 Quiz
1
To maximize profits, the manager should employ capital to the point where the
A) marginal products of capital and labor are equal.
B) value marginal product of capital equals the rental rate.
C) value of marginal product of capital and la
Ungraded Exercises Chapter 1-3
1. Southwest Airlines begins a 'Bags Fly Free' campaign, charging no fees for a first and second
checked bag.
This situation best represents producer-producer rivalry.
Explanation:
Producer-producer rivalry best illustrates
Ungraded Exercises Chapter 4-6
1. A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px
= $15 and Py = $5.
a. What is the market rate of substitution between goods X and Y?
-3
b. In the graph below: 1) Illustrate the
1.
Award: 0 out of 0.00 points
Ten firms compete in a market to sell product X. The total sales of all firms selling the product
are $2 million. Ranking the firms sales from highest to lowest, we find the top four firms sales
to be $260,000, $220,000, $1
Chapter10&11UngradedExercises
1.
Award: 0 out of 0.00 points
Use the following, one shot, normal-form game to answer the accompanying questions.
Player 1
Strategy
A
B
C
D
-200, 150
200, -300
-150, 250
Player 2
E
350, 100
400, 400
-250, 550
F
-50, 600
300
1. It has been said that if a government wishes to tax certain goods, it should tax goods that
have inelastic rather than elastic demand. What is the rationale for this? Give examples
and elaborate your arguments.
Governments prefer to tax goods, as well
Chapter 4 Practice Exercises
1.
ShoW correct answer
Award: 5 out of 5.00 points
A consumer has $300 to spend on goods X and Y The market prices ofthese two goods are Px = $15 and Py = $ 5.
a. What is the market rate of substitution between goods X and Y?
1.
Award: 3 out of 3.00 points
uppose total benefits and total costs are gtven by B(Y) =150Y - 10Y2 and C(Y) =5Y2 Then margtnal benefits are
e iJi1Wlr
0 111&
O ED
2.
Award: 3 out of 3.00 points
The margtnal cost tn the table is:
N~t
Cou tool
Yn l'iu blt'
1. How does the De Beers cartel maintain control of the price in the diamond market?
The De Beers cartel has maintained control of the price in the diamond market through
supply control and marketing. In the beginning, the De Beers cartel successfully co
Quiz 2
1.
Award: 5 out of 5.00 points
Ten firms compete in a market to sell product X. The total sales of all firms selling the product
are $2,500,000. Ranking the firms sales from highest to lowest, we find the top four firms sales
to be $400,000, $325,0
Chapter 11 Quiz
1
The pricing strategy in which a firm optimally sets the internal price to an upstream
division to maximize overall firm profits is referred to as
A) commodity bundling.
B) transfer pricing.
C) cross-subsidization.
D) two-part pricing.
2
Chapter 9 Quiz
1
Which of the following types of oligopoly competition would you expect to result in the
lowest market output, other things equal?
A) Collusion.
B) Betrand.
C) Cournot.
D) Stackelberg.
2
Two symmetric firms in a Bertrand duopoly face the i
1.
Award: 3 out of 3.00 points
Suppose total benefits and total costs are given by B(Y) = 100Y 8Y2 and C(Y) = 10Y2. What is the
maximum level of net benefits (rounded to the nearest whole number)?
92
139 correct answer
78
None of the statements associated
What is economic efficiency? What is economic equality?
Economic efficiency is a state in which every resource is optimally allocated to serve each
individual or entity in the best way while minimizing waste and efficiency (Investopedia,
2016, para. 1). I
Award: 5 out of 5.00 points
The X-Corporation produces a good [called X] that is a normal good. lts competitor, Y-Corp., makes a substitute good that it markets under the
name Y. Good Yis an inferior good.
a. How will the demand for good Xchange if consum
Chapter 1 Quiz
1
If you put $2,200 in a savings account at an interest rate of 6.5%, how much money will
you have in one year?
A) $143.
B) $2,066.
C) $2,209.
D) $2343.
2
Which of the following increases the potential for sustainable long-run industry prof
Chapter 3 Quiz
1
Which of the following provides an indication of the total variation explained by the
regression relative to the total unexplained variation?
A) P-value.
B) Adjusted R-square.
C) t-statistic.
D) F-statistic.
2
Suppose the demand for a pro
Chapter 6 Quiz
1
Suppose compensation is given by W = 690,000 + 634? + 11.05S, where W = total
compensation of the CEO, ? = company profits (in millions) = $1,000, and S = Sales (in
millions) = $2,000.
Suppose compensation is given by W = 690,000 + 634? +
Chapter 2 Quiz
1
A simultaneous decrease in demand and supply will unambiguously
A) raise the equilibrium price.
B) lower the equilibrium price.
C) lower the equilibrium quantity.
D) raise the equilibrium quantity.
2
An excise tax placed on the producer o
Chapter 7 Quiz
1
The "feedback critique" view of the industry believes that
A) market structure causes firm behavior, which causes market performance.
B) firm behavior causes market structure, which causes market performance.
C) market performance causes
Chapter 8 Quiz
1
You are the manager of a firm that produces output in two plants. The demand for your
firm's product is P = 80-Q, where Q = Q1 + Q2. The marginal cost associated with
producing in the two plants are MC1 = Q1 and MC2 = 8. How much output s
Chapter 10 Quiz
1
Consider the following information for a simultaneous-move game:
(130.0K)
The one-shot, Nash equilibrium to the simultaneous-move advertising game is for
A) Firm A to advertise and Firm B not to advertise.
B) both firms not to advertise.
1.
Award: 5 out of 5.00 points
The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes
a substitute good that it markets under the name Y. Good Y is an inferior good.
a. How will the demand for good X change if c