1. Is monopolistic competition efficient? monopolistic competition might be efficient if _______.
Answer
Correct Answer:
The loss that arises because the quantity produced is less than the efficient quantity is offset by the gain that arises from having a greater degree of product variety
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2. In figure 8.3 below, the minimum of the atc curve is where _________ = mc.
Answer
Correct Answer:
MC
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3. In figure 8.3 above, the maximum profit output is at quantity of ________ .
Answer
Correct Answer:
8.0
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4. In figure 8.3 above at the profit maximizing output, the total revenue is $ __________.
Answer
Correct Answer:
2400
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5. A coupon purchaser is _______ sensitive, but time insensitive.
Answer
Correct Answer:
Price
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6. ____________ tells a firm whether it can earn profits given the price in the market.
Answer
Correct Answer:
Average cost
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7. The location of a firm will be a _________ factor of production in ________ run.
Answer
Correct Answer:
Variable;the long
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8. The initial fee to open a jimmy johns for franchise buyers is __________.
Answer
Correct Answer:
$35,000
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9. One can determine the consumers surplus if the _______________ are known
Answer
Correct Answer:
Maximum buying price and price paid
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10. Oligopoly firms acting individually may seek to gain profits ___________________________ .
Answer
Correct Answer:
By expanding levels of output and cutting prices
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11. Markup is the amount by which price _____ cost.
Answer
Correct Answer:
Exceeds marginal.
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12. Labor, materials, and energy are typically __________ costs.
Answer
Correct Answer:
Variable
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13. A monopoly can price discriminate between two groups of consumers if _______ across the two groups.
Answer
Correct Answer:
A different willingness to pay
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14. The level of an economic activity should be increased to the point where the ____ is zero.
Answer
Correct Answer:
Marginal cost.
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15. Valueminustotal cost = ________.
Answer
Correct Answer:
True
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16. Because of market forces, firms have ________ when competition is widespread.
Answer
Correct Answer:
Little or no control over the price that they can charge and they make little or no economic profit
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17. A firm's total revenue is the _____ of its output multiplied by the _____.
Answer
Correct Answer:
Price; number of units of output sold
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18. There are ________ accounting periods per fiscal year in a typical restaurant.
Answer
Correct Answer:
13
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19. Fixed costs are important because, at least in the ___________, the firm _______________.
Answer
Correct Answer:
Short run; cannot alter them
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20. When there is excess demand, there is _____.
Answer
Correct Answer:
Upward pressure on price because buyers are willing to pay more.
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21. Refer to the data. at 6 units of output, total fixed cost is ____ and total cost is ____.
Answer
Correct Answer:
$150; $300
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22. Price discrimination leads to a _____ price for consumers with a _____ demand.
Answer
Correct Answer:
Lower; more elastic
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23. One defining characteristic of pure monopoly is that the _____.
Answer
Correct Answer:
Monopoly produces a product with no close substitutes
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24. Monopolistic competition might be efficient if _______.
Answer
Correct Answer:
The loss that arises
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25. Marginal utility is the ________ satisfaction gained by consuming ________ of a good.
Answer
Correct Answer:
Additional; one more unit
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26. Marginal revenue (mr) is ____ when total revenue is maximized.
Answer
Correct Answer:
Equal to zero
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27. At a quantity of 130, marginal benefit equals ______ and marginal cost equals _____.
Answer
Correct Answer:
$1.60, $0.50
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28. To cool off an inflationary economy, a government might ________.
Answer
Correct Answer:
Raise interest rates
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29. When ford decides to increase production of hybrid cars, it directly answers the ________ question.
Answer
Correct Answer:
What.
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30. The demand for all carbonated beverages is likely to be ________ the demand for dr. pepper.
Answer
Correct Answer:
Less elastic than
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31. The amount of money charged for a product is its __________.
Answer
Correct Answer:
Price
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32. Profits are equal to the difference between _____ and _____.
Answer
Correct Answer:
Total revenue; total costs
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33. For most products, a decrease in price will _______ value.
Answer
Correct Answer:
Increase
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34. Economic costs are the sum of _____ and _____.
Answer
Correct Answer:
Explicit costs; implicit costs
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35. Two external factors which must be considered in pricing decisions are __________.
Answer
Correct Answer:
Demand and the nature of the market
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36. Overhead costs ________ as the number of units produced increases.
Answer
Correct Answer:
Remain the same
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37. Internal factors that affect pricing include __________.
