Question 1 0 l 1 point The price of salsa falls. What happens in the market for chips, which are a complement for salsa? The equilibrium price falls and the equilibrium quantity rises The equilibrium price rises and the equilibrium quantity falls The equilibrium price and quantity rise The equilibrium price and quantity fall D View question 1 feedback Question 2 0 l 1 point If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%? Revenue increases by 10% Revenue increases by 5% Revenue decreases by 9% Revenue decreases by 18% Question 3 0 l 1 point In perfect competition, a single firm can earn economic profit in the short run through ___________ , and in the long run, economic profit will ______________ - collusion; quadruple collaboration; double acquisition; be maintained innovation; return to zero increased demand; be negative D View question 3 feedback Question 4 0 l 1 point True or False: If two goods are complements, an increase in the price of one will result in an increase in demand for the other. True False Question 5 1 l 1 point Two goods are substitutes if: An increase in the price of one leads to a shift to the left in the demand curve for the other An increase in the price of one leads to an increase in demand for the other An increase in the price of one will increase the supply of the other A fall in the price of one leads to a reduction in supply for the other D View question 5 feedback Question 6 0 / 1 point According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling and cleaning 9,400, Total annual cost of: 2 drivers 20,200, 2 guards 15,600, Mileage costs (per mile): Maintenance 0.15, Fuel 0.126. Assuming 90,000 miles annual use, what is the marginal cost per train mile? 0.150 0.126 0.276 0.155 Question 7 0 / 1 point A shift to the left of a supply curve is caused by: An increase in the number of sellers A technological improvement An increase in the returns from other supply possibilities An increase in the number of buyers I) View question 7 feedback Question 8 1 / 1 point According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling and cleaning 9,400, Total annual cost of: 2 drivers 20,200, 2 guards 15,600, Mileage costs (per mile): Maintenance 0.15, Fuel 0.126. Assuming 90,000 miles annual use, what is the average cost per train mile? 1.15 1.43 6.99 7.27 Question 9 O / 1 poin1 The producer in the monopoly market above will pick a level of production such that: Average total cost equals average variable cost Marginal cost equals quantity Marginal revenue equals marginal cost Quantity is zero Price is zero D View question 9 feedback Question 10 0 / 1 poin1 The single firm in a monopoly market is able to practice perfect price discrimination. Ceteris paribus, how much does the total surplus in this market differ from the total surplus if this were a perfectly competitive market? More Less About the same Exactly the same Not enough information Question 11 O / 1 point True or False: Price changes for complements and substitutes have the same effect on demand. True False D View question 11 feedback Question 12 1 / 1 point The Herfindahl-Hirschman Index (HHI) is a measure of: Market concentration Perfect price discrimination Price elasticity of demand Ferro-magnetic permeability Consumer surplus Question 13 0 / 1 point If the price elasticity of demand in the United States for foreign-made luxury cars is 2.8, what is the impact on revenue if the price increases by 10%? Revenue increases by 10% Revenue increases by 5% Revenue decreases by 9% Revenue decreases by 18% D View question 13 feedback Question 14 0 / 1 point A firm will always elect to reduce production when marginal cost is greater than average total cost if: The firm is a price-taker and average total cost is maximum The firm is a price-setter and average total cost is maximum The firm is a price-taker and marginal cost exceeds the market price The firm is a price-setter and marginal revenue is greater than market price None of these Question 15 0 l 1 point True or False: In perfect competition, long-run economic profits are zero. True False l> View question 15 feedback Question 16 1 / 1 point True or False: A decrease in both supply and demand will lead to a decrease in equilibrium quantity. True False l> View question 16 feedback Question 17 0 l 1 point According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling and cleaning 9,400, Total annual cost of: 2 drivers 20,200, 2 guards 15,600, Mileage costs (per mile): Maintenance 015, Fuel 0.126. Assuming 90,000 miles annual use and an average of 45 passengers, what is the average cost per passenger mile? 0.032 0.161 0.026 0.155 Question 18 It is true that the equilibrium quantity will always go up if supply: And demand both increase Increases and demand decreases And demand both decrease Decreases and demand remains unchanged D View question 18 feedback Question 19 A price-taking rm selling in a market with a price greater than the rm's average total cost should: Increase its output level Decrease its output level Cease operation in the short run Cease operation in the long run None of these Question 20 Efficient production implies: That it is possible to produce more of all goods and services That it is possible to produce more of one good without producing less of another That it is not possible to produce more of one good without producing less of another good Producing at a combination of goods which lies between the production possibilities curve and the origin