Managerial Economic Homework 1
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Question 1
1 out of 1 points | | | When are buyers and sellers likely to engage in an exchange? Answer | | | | | Selected Answer: | d. All of the above statements are correct | Correct Answer: | d. All of the above statements are correct | | | | | * Question 2
2 out of 2 points | | | In a transaction for a rare painting valued at $1,000,000, by an avid collector, and at $950,000 by the seller, what sales tax would result in an unconsummated wealth-creating transaction? Select All That Apply Answer | | | | | Selected Answers: | d. An 10% tax f. A tax of $55,000 | Correct Answers: | d. An 10% tax f. A tax of $55,000 | Response Feedback: | A tax that amounts to $55,000 and a tax of 10% (amounts to $95,000) cause the seller to adjust the price to $1,005,000 and $1,045,000. This is above the value placed by the buyer. As such, the transaction does not go through. | | | | | * Question 3
1 out of 1 points | | | Economic profits are: Answer | | | | | Selected Answer: | b. [Total Sales Revenue] - [Market Value of all the Resources Employed in the Production Process] | Correct Answer: | b. [Total Sales Revenue] - [Market Value of all the Resources Employed in the Production Process] | | | | | * Question 4
1 out of 1 points | | | Which of the following is an implicit cost to a firm that produces a good or service? Answer | | | | | Selected Answer: | c. Sacrificed profits from producing an alternative good or service | Correct Answer: | c. Sacrificed profits from producing an alternative good or service | | | | | * Question 5
1 out of 1 points | | | As more firms enter an industry (the number of competitors increases), and holding all else equal, you can expect: Answer | | | | | Selected Answer: | b. Economic profits to decrease | Correct
Question 1
1 out of 1 points | | | When are buyers and sellers likely to engage in an exchange? Answer | | | | | Selected Answer: | d. All of the above statements are correct | Correct Answer: | d. All of the above statements are correct | | | | | * Question 2
2 out of 2 points | | | In a transaction for a rare painting valued at $1,000,000, by an avid collector, and at $950,000 by the seller, what sales tax would result in an unconsummated wealth-creating transaction? Select All That Apply Answer | | | | | Selected Answers: | d. An 10% tax f. A tax of $55,000 | Correct Answers: | d. An 10% tax f. A tax of $55,000 | Response Feedback: | A tax that amounts to $55,000 and a tax of 10% (amounts to $95,000) cause the seller to adjust the price to $1,005,000 and $1,045,000. This is above the value placed by the buyer. As such, the transaction does not go through. | | | | | * Question 3
1 out of 1 points | | | Economic profits are: Answer | | | | | Selected Answer: | b. [Total Sales Revenue] - [Market Value of all the Resources Employed in the Production Process] | Correct Answer: | b. [Total Sales Revenue] - [Market Value of all the Resources Employed in the Production Process] | | | | | * Question 4
1 out of 1 points | | | Which of the following is an implicit cost to a firm that produces a good or service? Answer | | | | | Selected Answer: | c. Sacrificed profits from producing an alternative good or service | Correct Answer: | c. Sacrificed profits from producing an alternative good or service | | | | | * Question 5
1 out of 1 points | | | As more firms enter an industry (the number of competitors increases), and holding all else equal, you can expect: Answer | | | | | Selected Answer: | b. Economic profits to decrease | Correct