MicroEconomic Questions

Fill in the blank or what is this called - term to be placed in the blank

1. When only a few firm accounts for most of the sale in a market, we can say that the market is highly ___________.
2. The most important relationship between quantity produced and __________.
3. Free markets produce the quantity of goods that maximizes the sum of consumer and the ________.
4. In his/her view, the firms total revenue minus only the firms explicit cost. __________
5. The amount that the firm receives for the sale of its output is called _____________.
6. An individual's demand curve slopes downward. ______________
7. Most markets have more than one buyer and the number of buyers is an important determinant. ______________
8. A group of firms in action. ______________
9. The fundamental cause of monopoly. ______________
10. The sole producer in the market, its demand curve is the market demand. ___________
11. The formula in getting total revenue. ______________
12. The study of how the allocation of resources affects economic well-being. ____________
13. It measures the benefit sellers receive from participating in a market. ______________
14. Is closely related to the demand curve. _____________________
15. An input cost that require an outlay of money by the firm. _______________

TRUE OR FALSE

1. Consumer's choice is a study on consumer's preferences and analyzes the budget line constraints.
2. Tennis ball and a tennis racket are complements and are substituted.
3. When a monopolist switches from charging price to practicing perfect price discrimination, it reduces the quantity produced.
4. Producing a quantity larger than the equilibrium of supply and demand is inefficient.
5. An equilibrium price rises as a result on factor of production if the supply of a factor falls.
6. An ideal cost of living indexes measure the cost of buying at current prices, a bundle of goods that generates the same level of utility.
7. An efficient allocation of resources maximizes customer surplus.
8. If a monopoly's fixed costs increase, its price will stay the same and its profit will decrease.
9. If advertising makes consumers loyal to particular brands, it could increase the elasticity of demand and decrease the markup of price over marginal cost.
10. The antitrust laws aim to prevent firms from acting in ways that reduce competition.
11. The table below shows the monopoly of DIA Telecommunication.

Quantity	Price	Total Revenue	Average Revenue	Marginal Revenue
0	15	0	0	0
2	18
4	22
6	25
8	29
10	33

Required:

Compute the missing amounts for total revenue, average revenue and marginal revenue.

1. John Rock and the recording company have just finished recording latest CD. His record company's marketing department determines that the demand for the CD is as follows.

Number of workers	Output	Marginal Product of Labor	Cost of Recording	Cost of Workers	Total Cost of input
2	12		20
4	15		20
6	18		20
8	24		20
10	28		20

Required:

1. Complete the missing amounts in the marginal product labor, cost of workers and the total cost of input.
2. Graph the production function and total cost.