Hello! Need help with micro questions. Please list the letter that best answers the question and give a brief explanation as to why you pick that answer. Explanations can include mathematics, fully labeled graphs, sentences. Thank you!

33. A distinguishing characteristic of a natural monopoly, 38. The numbers in the following payoff matrix indicate assuming it is capable of earning positive economic profits for firms Alpha and Beta. profit, is that Beta's Price Policy a. profit is maximized at the output level that equates High Low marginal revenue and marginal cost. $20, $20 $10, $30 b. profit is maximized at the output level that equates Alpha's Price High Policy Low $30, $10 $15, $15 price and marginal cost. c. the average total cost curve crosses the demand Which of the following is true? curve twice in the economies of scale region. a. Charging a high price is a dominant strategy for d. the average total cost curve crosses the demand Alpha. curve in the diseconomies of scale region. b. Charging a high price is a dominant strategy for e. the marginal cost curve crosses the average total Beta. cost curve at the minimum point of the average c. Beta will charge a high price if Alpha charges a high total cost curve. price. 34. Which of the following is true of a natural monopoly? If d. Alpha will charge a high price if Beta charges a high regulators price. a. set a price ceiling equal to marginal cost, firms will e. Charging a low price is a dominant strategy for not be willing to produce in the long run unless they Alpha. are subsidized. b. set a price ceiling equal to average total cost, there 39. In the long run, a monopolistically competitive firm will will be no deadweight loss. earn c. set a price ceiling above the average total cost, the a. positive or negative economic profit, depending on firm will not be able to make a profit. the situation. d. choose not to set a price ceiling, the firm will be b. positive economic profit due to barriers to entry. a price-taker and the market will determine the c. normal profit. price. d. positive economic profit due to a differentiated e. split the monopolist into several smaller firms, the product. average total cost will decrease. e. positive economic profit due to price discrimination. 35. Open-access forests are a common resource that tends 40. If a country had perfect income equality, its Lorenz to be overconsumed (logged excessively) because they curve would be are a. U-shaped. a. nonexcludable and nonrival. b. L-shaped. b. excludable and nonrival. c. V-shaped. c. public goods. d. a straight line. d. nonexcludable and rival. e. curved and downward-sloping. e. excludable and rival. 41. The labor demand curve for a firm hiring in a perfectly 36. Which of the following is a result of perfect price competitive labor market is discrimination? a. the firm's marginal revenue product curve. a. a gain in producer surplus b. the firm's marginal product curve. b. a gain in consumer surplus c. horizontal. c. less output overall d. the firm's average product curve. d. marginal revenue less than price e. the firm's marginal revenue curve. e. marginal revenue greater than price 42. Suppose Brenda's Boat Taxis rents capital in a perfectly 37. An oligopoly is a market with competitive capital market. Brenda's Boat Taxis should a. only one firm. rent more capital if which condition is true? b. fewer firms than in a monopolistically competitive a. The marginal revenue product of capital is equal to market, and the existence of interdependent firms. the rental rate. c. more firms than in a perfectly competitive market, b. The average revenue product of capital is equal to and the existence of interdependent firms. the rental rate. d. more firms than in a monopoly, and the existence of c. The marginal revenue product of capital is less than independent firms. the rental rate. e. more firms than in a monopolistically competitive d. The marginal revenue product of capital is greater market, and the existence of independent firms. than the rental rate. e. The average revenue product of capital is less than the rental rate. 818 AP Microeconomics Exam Practice TestUse the following per-day employment and output data for Lenny's Lattes to answer Questions 43 and 44. 48. A perfectly competitive firm's short-run supply curve a. does not exist. Number of workers Total number of lattes b. is perfectly elastic. 0 c. is the same as the firm's marginal cost curve at every 10 price. 30 d. is that portion of the firm's marginal cost curve that 60 aUAWN. lies above the ATC curve. 100 e. is that portion of the firm's marginal cost curve that 125 lies above the AVC curve. 140 49. For a market in an open economy with imports available 43. If lattes sell in a perfectly competitive market for $4 at a constant world price, the imposition of a tariff will each, what is the marginal revenue product of the third decrease the worker? a. consumer surplus. a. $4 b. producer surplus. b. $12 c. deadweight loss. c. $60 d. price paid in the domestic market. d. $120 e. domestic supply. e. $240 50. To minimize the cost of producing a given quantity of 44. If lattes sell in a perfectly competitive market for $4 each output, a firm should and workers are paid $80 per day, how many workers a. equate the marginal product of capital per dollar should Lenny hire to maximize profit? spent on capital and the marginal product of labor a. 2 per dollar spent on labor. b. 3 b. equate the total amount spent on labor and the total C. 4 amount spent on capital. d. 5 c. make the marginal revenue product of capital per e. 6 dollar spent on capital greater than the marginal revenue product of labor per dollar spent on labor. 45. Which of the following is always horizontal? d. equate the marginal revenue product of capital and a. the demand curve facing a firm that sells its product the marginal revenue product of labor. in a perfectly competitive market e. hire mostly the factor of production that has the b. the labor demand curve for a firm hiring in a lowest cost per unit of the factor. perfectly competitive labor market 51. Which of the following is likely to shift the labor demand c. the labor supply curve for a monopsony curve but not the labor supply curve? A change in d. the demand curve for a monopoly a. immigration rate. e. the long-run industry supply curve in a goods b. the education of citizens. market c. the wealth held by households. 46. If Keno's Cars is the only employer in a small town, that d. the price of the product being made. firm is a e. social norms. a. monopolist. 52. A market with external costs and no external benefits b. monopolistic competitor. will do which of the following? c. monopsonist. a. produce too much output d. perfectly competitive firm. b. produce too little output e. Keynesian. c. have a price that is too high 47. The marginal factor cost curve of labor for a d. experience deadweight gains monopsonist is e. produce the socially optimal quantity a. upward-sloping and above the supply curve at every 53. The deadweight loss caused by an excise tax quantity of labor beyond one. a. consists of lost producer and consumer surplus. b. downward-sloping and above the supply curve at b. results in gains to consumers but losses to every quantity of labor beyond one. producers. c. upward-sloping and below the supply curve at every c. results in gains to producers but losses to quantity of labor beyond one. consumers. d. downward-sloping and below the supply curve at d. results from overproduction. every quantity of labor beyond one. e. results from externalities. e. upward-sloping and coincident with the supply curve of labor. AP Microeconomics Exam Practice Test 81958. Suppose the peanut market is at equilibrium as MICRO EXAM 54. What is true if marginal social benefit exceeds marginal social costs at the market level of output? shown in this graph. If an excise tax of $0.15 per a. A negative externality exists, and the government unit is imposed on producers, the consumer surplus could correct for it with a Pigouvian tax. that would result after the imposition of the tax is b. A negative externality exists, and the government represented by which area? could correct for it with a Pigouvian subsidy. a. A, B, C, D, E, F, G d. A, B, E c. A positive externality exists, and the government b. A, B, C, D e. A, B could correct for it with a Pigouvian tax. c. E, F, H d. A positive externality exists, and the government 59. What area represents the deadweight loss that would could correct for it with a Pigouvian subsidy. result from the imposition of the $0.15 per unit tax on e. The market outcome is ideal, since there are positive producers? marginal benefits. a. A, B, E d. D 55. What type of tax is the least likely to affect the profit- b. G, I e . F maximizing quantity of output for a firm? c. C a. sales tax 60. What is the term for a situation in which distorted b. per-unit tax incentives arise because an individual has private c. lump-sum tax information about their own actions, but someone else d. excise tax bears the costs of a lack of care or effort? e. Pigouvian tax a. moral hazard d. game theory 56. Company A and Company B are monopolistically b. adverse selection e. prisoner's dilemma competitive firms that make winter coats. If Company c. upper hand A adds fuzzy trim to its coats and Company B doesn't, then Company A is necessarily practicing Fr a. price leadership. b. tit-for-tat strategy. aker c. product differentiation. elow provides a 1. Datent Ted's d. tacit collusion. e. cartel behavior. 57. Income inequality decreases as the result of Price Quantity demander a. compensating wage differentials. $101 b. progressive taxes. c. discrimination. d. differences in social capital. 51 e. differences in human capital. TOT Use the graph provided to answer Questions 58 and 59. Price a. Supply + tax the graph for part a. i. What is the man Thist unit? al revenue for the 51st unit? . .... Supply "is at which the pri . . ... C -zan costs Patent Ted $10 to produce. Draw the $0.15 e. On the ..... .. .. maximizing price P* . ... ... . Suppose De neu Cost. Completely SH . . . .. area on the arapb th epresents profit. Demand g. In a few years, the now cot pulls will expire Quantity and thi will become perfectly competitive. If production or demand s to, what price will firms charg perfectly comperis your ansm 820 AP Microeconomics Exam Practice Test