Michelle spends all of her income on mangos and rice. Mangos cost $2 per pound and rice
costs $1.50 per pound. If Michelle is spending all of her income and the marginal utility per
dollar spent is 20 for the last pound of mangos pur-chased and 10 for the
Which of the following statements is true?
A) Utility units are observable.
B) Total utility is equal to marginal utility.
C) Utility is gained whenever someone wants a good.
D) Marginal utility theory assumes that marginal utility diminishes as more of a
The above table shows Homers utility from boxesof doughnuts. If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his
A) total utility and marginal utility will both de-crease.
B) total utility will decrease, but his marginal utility w
When a firm is experiencing economies of scale,
A) the MPcurve slopes upward.
B) the LRACcurve slopes downward.
C) diminishing returns to labor have been suspended.
D) the MCcurve slopes downward.
Price wars are
most likely when there is a monopoly.
most likely when there is oligopoly.
C) most likely when there is perfect competition.
D) equally likely in the cases of monopoly, oligopoly, and perfect competition.
An example of someo
take the market price as given.
B) cannot incorporate.
C) cannot change the market quantity.
D) can influence the market quantity and price.
The following are key features of a monopoly EXCEPT
the monopoly is protect
Which of the following might be a gain to society from monopoly?
Monopolists do not waste resources trying to innovate.
Monopolies might be able to generate econo-mies of scale.
Monopolies might be able to price discriminate, thereby boosting con
Ricardo buys cola and popcorn. Cola sells for $0.50 a can and popcorn sells for $1 per bag.
He is in consumer equilibrium. The price of a cola jumps to $1 per can. In his new consumer
A) marginal utility of cola will be equal to his
Producer surplus is equal to _.
the opportunity cost of producing the good mi-nus the consumers value of thegood
the producers revenue minus the value of the good
the opportunity cost of producing the good mi-nus the marginal cost
Poppy Lipstick is a lipstick producer. A decrease in the rent paid by Poppy Lipstick
A) shifts its TFCcurve downward but not its TVCcurve.
B) shifts both its TFCcurve and its TVCcurve downward.
C) does not shift its TFCcurve but shifts its TVCcurve upward
Which characteristic is associated with monopolistic competition?
B) Product differentiation
Small number of firms
D) Awareness of rival firms in the market
Monopolistic competition is a market structure in which
firms face ba
According to the kinked demand curve theory of oligopoly, each firm thinks that the
demand curve just below the existing price is
flatter than the curve just above the existing price.
has the same slope as the curve just above the existing price.
A monopoly that sells every unit of its output at the same price is a _.
A) unit-price monopoly
B) legal monopoly
C) natural monopoly
D) single-price monopoly
Producer surplus is equal to _.
the opportunity cost of producing the good mi-nus t
If Steves Apple Orchard, Inc. is a perfectly competitive firm, the demand for Steves apples has
A) zero elasticity.
B) unitary elasticity.
C) elasticity equal to the price of apples.
D) infinite elasticity.
In a perfectly competitive industry, t
Answers to Odd-Numbered Exercises
Chapter One: An Overview of Regression Analysis
1-3. 1-5. (a) Positive, (b) negative, (c) positive, (d) negative, (e) ambiguous, (f) negative. (a) The coefficients in the new equation are not the same as those estimated i
The figure above shows Mollies
Mugs costs of producing mugs. The mug market is perfectly competitive. If the market
price of a mug falls to $5 and Mollies shuts down temporarily, its total variable cost is
_ an hour and it incurs an eco-nomic loss of _ an
When the monopolistically competitive firm shown in the above figure is at its long-run
equilibrium, it will be
producing the efficient scale of output and is at point A on the ATC curve.
producing more than the efficient scale of out-put and is at
If a monopolistically competitive firms marginal cost curve shifts upward, then its level
A) will increase.
will stay the same.
C) will decrease.
could increase, decrease or stay the same but more information is needed.
The table above gives the
demand schedule for water bottled by Wandas Healthy Waters. If Wandas is a
monopoly and maximizes its profit, what is the range of possible prices at Wandas will
at only $8 a bottle
any price below $8 a bottle
Compared to a single-price monopoly, the price charged by a competitive industry with
the same costs
A) is higher than the monopolys price.
B) is the same as the monopolys price.
C) is lower than the monopolys price.
D) could be higher than, lower than, o
Given the market demand and cost data in the above figure, the existence of a monopoly firm
producing 8 million cubic feet of natural gas makes it possible to produce natural gas at a long-run
average cost of
10 cents per cubic foot.
20 cents per cu
Eco 402 Public Finance
October 19, 2010
Quiz 2: Efficiency Criterion, Political Philosophy/Justice, Public Goods, Externalities
SHOW YOUR WORK
Bridgmans Chocolate Confectionery sells candy. In his business, Bridgman uses mach
A monopoly firm expands its output and lowers its price. The firm finds that its total revenue falls.
Hence, the firm is producing in the
elastic range of its demand curve.
inelastic range of its demand curve.
C) elastic range of its supply curve.
Multiple-choice questions to accompany
FOR MEDIA INTERPRETATION
(MIT Press, third edition, 2010)
Copyright 2010 by Peter E. Kennedy
This set of multiple-choice questions has been prepared for instructors wishing a bank of
In the case of a perfectly price-discriminating monopoly, there is no
A) transfer of consumer surplus to the producer.
B) deadweight loss.
C) short-run economic profit.
D) long-run economic profit.
Using the demand schedule in the above table, i
The industry that produces zangs is in long-run equilibrium. Then the demand for zangs
increases permanently. As a result, firms will _. Some firms will _ the
industry,and the industry supply curve will shift _.
A) make economic profits; enter; rightward
In monopolistic competition, in the long run customers pay a price that is
less than the minimum ATC
more than the minimum ATC
equal to both the minimum ATC and the mini-mum AVC
equal to the minimum ATCbut not equal to the minimum AVC.
According to the kinked demand curve theory of oligopoly, each firm believes that if it
lowers its price,
the government will impose price floors.
the government will impose price ceilings.
other firms will not lower theirs.
other firms will a
Chapter 01 - Overview of Financial Statement Analysis
Overview of Financial Statement Analysis
Multiple Choice Questions
1. Which of the following is likely to be the most informative source if you were interested in
a company's business plan o
Principles of Forecasting: A Handbook for Researchers and Practitioners,
J. Scott Armstrong (ed.): Norwell, MA: Kluwer Academic Publishers, 2001
Standards and Practices for Forecasting
J. Scott Armstrong
The Wharton School, University of Pennsylvania
Quantitative forecasting methods
reduce random fluctuations in time series
provide a clearer view of the true underlying
behavior of the series
SOME FORECASTING TECHNIQUES
Human Behavior and Decision
Assoc. Prof. Christian Tanushev, Ph.D.
June 14, 2017
Game Theory and Planning
The Prisoners Dilemma
Uncertainty and Risk Definitions
Decision Making Process
Biases of Judgement (belie
FORECASTING & PLANNING
Forecasting and planning definitions;
Advantages and disadvantages of planning;
System definition and systems characteristics;
System approach and system thinking
System approach, res