*In an increasing-cost industry, an increase in industry output will

Select one:

a. lead to a lower market price.

b. shift each firm's short run supply curve down.

c. lead to a higher market price.

d. shift each firm's average fixed cost curve down.

Answer..?

Personalized advertising that uses postal mailings, phone calls, and e-mail messages is known as

Select one:

a. interactive marketing.

b. direct marketing.

c. indirect marketing.

d. mass marketing.

Answer..?

The lowest rate of output per unit of time at which long-run average costs for a particular firm are at a minimum is

Select one:

a. constant returns of scale.

b. economies of scale.

c. diseconomies of scale.

d. minimum efficient scale.

Answer..?

Assuming fixed factor prices, the short-run industry supply curve for a perfectly competitive industry is equal to the sum of the

Select one:

a. MC curves above minimum ATC.

b. AVC curves above minimum AVC.

c. ATC curves above minimum ATC.

d. MC curves above minimum AVC.

Answer..?

Other things being equal, a price-discriminating firm will charge more to the customers who

Select one:

a. have the most elastic demand for the product.

b. have the least elastic demand for its product.

c. are the least rational in making their decisions.

d. have the highest incomes.

Answer..?

A firm typically achieves its position as a monopolist as a result of

Select one:

a. the absence of long-run profits in an industry.

b. a small market and a constant average cost.

c. barriers to entry.

d. a downward sloping demand for the product.

Answer..?

In general, the demand for the product of a monopolistic competitor is

Select one:

a. relatively inelastic.

b. relatively elastic.

c. unitary elastic.

d. perfectly elastic.

Answer..?

The portion of consumer surplus that no one in society is able to obtain in a situation of monopoly is known as

Select one:

a. a deadweight loss.

b. a market failure.

c. an unrealized loss.

d. a market externality.

Answer..?

The demand curve faced by the monopolist

Select one:

a. is identical to the firm's MR curve.

b. is the industry demand curve.

c. has a constant price elasticity.

d. is identical to the firm's TR curve.

Answer..?

As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will decline. This is known as the law of

Select one:

a. diminishing marginal product.

b. diminishing total product.

c. diminishing average product.

d. decreasing product.

Answer..?

Which of the following statements about a firm's short-run variable costs is correct?

Select one:

a. They include the costs of plant and equipment.

b. They typically include the cost of workers' wages.

c. They increase as the level of output decreases.

d. They are always a greater expense than are fixed costs.

Answer..?

A monopolist produces in the elastic segment of its demand curve because when it lowers the price,

Select one:

a. the percentage change decrease in quantity demanded is less than the percentage change decrease in price and total revenue increases.

b. the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue decreases.

c. the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue increases.

d. the percentage change increase in quantity demanded is less than the percentage change decrease in price and total revenue increases.

Answer..?

The marginal physical product of labor is calculated assuming other factor inputs

Select one:

a. decrease.

b. increase more than proportionately.

c. remain constant.

d. increase less than proportionately.

Answer..?

In the long run in a monopolistically competitive market, a firm will, in theory,

Select one:

a. break even.

b. suffer losses.

c. earn economic profits.

d. earn zero accounting profits.

Answer..?

A perfectly competitive industry's market or "going" price is established by

Select one:

a. the largest firm in the industry.

b. each individual producing firm and reflects that firm's costs.

c. the forces of supply and demand.

d. the largest purchaser of this industry's output.

Answer..?

The demand curve for the product of a perfectly competitive firm is

Select one:

a. elastic at high prices and inelastic at low prices.

b. identical to the elasticity of demand on the market demand curve.

c. perfectly inelastic.

d. perfectly elastic.

Answer..?

Marginal revenue equals

Select one:

a. total revenue divided by output.

b. total revenue divided by average revenue.

c. the change in total revenue from selling one more unit.

d. price times quantity, divided by average revenue.

Answer..?

Why is the pricing outcome of a perfectly competitive firm efficient in economic sense?

Answer..?

If a perfectly competitive industry is in long-run equilibrium, then

Select one:

a. all firms earn the same accounting profits.

b. price is greater than average cost and equal to marginal cost.

c. marginal cost is less than average cost.

d. price equals average cost.

Answer..?

The shape of the short-run average total cost curve is a result of

Select one:

a. diseconomies of scale.

b. economies of scale.

c. the law of diminishing marginal product.

d. falling profits.

Answer..?

What is a monopolist, and what is required for a monopolist to earn profits in the long run?

Answer..?

Your local farmer has many competitors and exists in a market structure known as perfect competition. This means that price is determined outside of the individual farmer's ability to charge a price higher than the going market for a bushel of wheat, hence the farmer is

Select one:

a. a price taker and cannot affect the market price of wheat.

b. a price maker and can therefore charge different customers different prices.

c. always able to price produce above the competition and earn a larger profit.

d. never able to determine any prices he charges for anything, such as soybeans.

Answer..?

In economics, the planning horizon is defined as

Select one:

a. the period of time for which technology is fixed.

b. the longest time period over which the firm can make decisions.

c. the long run, during which all inputs are variable.

d. 10 years for every firm.

Answer..?