Question 11 (5 points)

Which of the following correctly identifies the price at which a firm should shut-down?

Question 11 options:

a)

Price is greater than the average variable cost

b)

Price is equal to the marginal cost

c)

Price is less than the total cost

d)

Price is less than the average variable cost

Question 12 (5 points)

Which of the following market structures experiences a "Nash Equilibrium" in terms of pricing behavior?

Question 12 options:

a)

Perfect competition

b)

Oligopoly

c)

Monopoly

d)

Monopolistic Competition

Question 13 (5 points)

Which of the following is NOT considered a criteria of an "efficient market"?

Question 13 options:

a)

Perfect information

b)

Positive externalities exist

c)

Lots of buyers and sellers

d)

No barriers to entry and market is perfectly competitive

Question 14 (5 points)

Which of the following is NOT a factor that leads to a shift in the supply curve?

Question 14 options:

a)

Change in labor and capital inputs

b)

Change in consumer income

c)

Change in number of firms in industry

d)

Government regulations

Question 15 (5 points)

For which of the following goods is the demand curve likely to be the most inelastic?

Question 15 options:

a)

Taxicab transportation for a family vacationing in DC

b)

Insulin for a diabetic

c)

An Apple Smartphone

d)

Elective cosmetic surgery

Question 16 (5 points)

Which of the following is the best example of a public good?

Question 16 options:

a)

National Defense

b)

A local gas station

c)

A city-owned electric power generating plan

d)

Public Universities

Question 17 (5 points)

A perfectly competitive firm has the following option with respect to how it sets price:

Question 17 options:

a)

Are required to accept below-market prices if they wish to sell their product

b)

Often set the price of their product above the market equilibrium to take advantage of market imperfections

c)

Have a great deal of latitude when it comes to setting the price of their product

d)

Have little choice but to accept the prevailing market price for their product

Question 18 (5 points)

What market failure does the regulation of nursing home quality address?

High long-term care costs

Existence of a public good

Question 18 options: