Topics: Supply and demand, Economics, Costs Pages: 6 (5686 words) Published: January 26, 2015
[Q#2020] If buyers’ value for bicycles increase, the demand for bicycles will ______.a. Increase [Q#2053] A supply shortage in the market for lettuce will _______ the equlibrium price of lettuce. a. Increase [Q#2057] At any moment the equilibrium price in the market for tablet computers will be determined by ________ . c. Buyers and the sellers of tablet computers [Q#2059] The equilibrium price is also known as c. the market-clearing price. [Q#4021] Along a demand curve with a constant slope, the price elasticity of demand: d. will be greater at higher prices than at lower prices. [Q#5004]The short run is the period of time in which:d. at least one input is fixed. [Q#5024]Oscar has negotiated a lease for his sporting goods store in which he is required to pay $2,000 per month in rent. Oscar pays his staff $10 per hour to sell sporting goods and his monthly electricity bill averages $500, depending on his total hours of operation. Oscar's fixed costs per month equal:a. $2,000 [Q#5031]The change in total cost arising from producing one more unit of output is known as:c. marginal cost. [Q#5045]Austin's total fixed cost is $4,000. Austin employs 15 workers and pays each worker $100. The average product of labor is 5, and the marginal product of the last worker hired is 8. What is the marginal cost of the last unit produced by the last worker Austin hired?b. $13 [Q#6019]A firm is a price-taking producer when:d. its actions cannot affect the market price of the product. [Q#6026]In a perfectly competitive market:a. no one market participant will be able to influence price. [Q#6033]The table above gives the total cost information for a perfectly competitive firm. What is the profit-maximizing quantity of output?d. 1 [Q#6034]Which of the following is the best example of a commodity in a perfectly competitive industry?b. apples [Q#6035]The short-run individual supply curve of a firm is:b. the portion of its marginal cost curve above average variable cost. [Q#6038]When a perfectly competitive industry is in equilibrium:a. the value of marginal cost is the same for all firms. [Q#6043]The market for beef is in long-run equilibrium at a price of $3.25 per pound. The announcement that mad cow disease has been discovered in the United States reduces the demand for beef sharply, and the price falls to $2.00 per pound. If the long-run supply curve is horizontal, then when the long-run equilibrium is reestablished, the price will be:b. $3.25 per pound. [Q#6045]Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0.10. Now suppose that the price of sugar rises, increasing the marginal and average total cost of producing candy canes by $0.05; there are no other changes in production costs. Based on the information given, we can conclude that once all of the adjustments to long-run equilibrium have been made, the price of candy canes will equal:Select one:a. $0.15 [Q#6047]The long-run industry supply curve:c. will be more elastic than the short-run industry supply curve. [Q#6049]If the long-run market supply curve for a perfectly competitive market is horizontal, then this industry is one that exhibits:c. constant costs. [Q#7004]An industry is characterized by increasing returns to scale if:d. average total cost falls as output increases. [Q#7005]A natural monopoly is an industry that is:c. characterized by increasing returns to scale. [Q#7013]Wendy has a monopoly in the retailing of motor homes. She can sell 5 per week at $21,000 each. If she wants to sell 6, she can charge only $20,000 each. The quantity effect of selling the 6th motor home is:a. $20,000. [Q#7014]Wendy has a monopoly in the retailing of motor homes. She can sell 5 per week at $21,000 each. If she wants to sell 6, she can only charge $20,000 each. The price effect of selling the 6th motor home is:d. -$5,000. [Q#7034]Under conditions...
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