Question 2 0 Mark this question Select the definition that represents an oligopoly. O A model that explains why price fixing tends to break down 0 When firms work together to determine the price and number of products 0 A group of firms engaged in price fixing O A market structure that consists of a few firms that all sell similar products Question 3 0 Mark this question 02 01 Given the graph shown here. the firm should contemplate shutting down production at which of the following points? 0 When MC (the purple line) reaches its lowest point 0 When MC (the purple line) is greater than Q1 0 At 02 0 At 01 Question 4 0 Mark this question Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 19 19 2 50 31 3 75 25 4 96 21 5 111 1'5 Based on the data in this table, how many employees should the company hire in order to maximize their prot if the price of product is $5 and cost of each worker is $100? 0 Two employees 0 Four employees 0 Five employees 0 Three employees Question 5 0 Mark this Which type of firms will belong to a decreasing cost industry at high output levels? 0 All rms are equally situated to enjoy decreasing costs at a high output level 0 Perfect competition 0 It is impossible for firms to have decreasing costs at a high output level 0 Monopoly Question 6 A variable input is one that 0 will change as a result of changes in production 0 is highly expensive to change in the long run 0 will always have increasing costs 0 will not change over the scope of production Question 7 O Mark this question If the variable costs for a firm are $57, the fixed costs are $143, and the firm sells 40 units, what are the firm's average total costs? O $25.00 O $5.00 O $20.00 O $10.00Question 8 0 Mark this questiu Cost Total Cost Total Revenue Mu! Prot Based on the graph above, should the rm increase, decrease or stay at current levels of production to maximize profit? 0 Increase until the total revenue curve and total cost curve intersect O Decrease until total revenue is at its highest point 0 Increase until the slope of the total revenue curve and total cost curve are equal 0 Decrease until total cost is at its lowest point Question 9 Which of the following is a characteristic of monopolistic competition? 0 Advertising increases the cost of production. 0 Predatory price cutting occurs. Firms sell homogenous products. 0 Cooperation between firms is sometimes used to maintain prices. Question 10 0 Mark this question When a firm uses five machines, it can produce 600 units daily. A sixth machine allows the firm to product 880 units. Which of the following is true regarding production? The total production for 11 machines would be 1,480 units with an average production of164 0 Units. The marginal production for the sixth machine is 880 units and total production would be 1,480 units. 0 The marginal product for the fth machine is 600 and the average product is 120 units. 0 The marginal product for the sixth machine is 280 units and the average product i514? units. Question 11 0 Mark this question Given the following production function for a train engine manufacturing company, at what point (or points) should the firm produce? 0 E&D Question 12 0 Mark this question Which statement below is NOT true about the long run average supply curve? 0 The long run supply curve consists of MC from the shutdown point onward. O The long run supply curve consists ofthe minimum points of short run supply curves. 0 The long run supply curve must be equal to or lie below the short term supply curve. 0 The shape of the long run curve is due to economies and dlseconomies of scale. Question 13 0 Mark this question Which of the following market structures has only one seller, who acts as a price maker? 0 Monopoly O Monopolistic competition 0 Oligopoly 0 Perfect competition Question 14 0 Mark this question The Prisoner's Dilemma can come into play when firms 0 engage in predatory pricing to move each other out of the market 0 decide whether to work together on things like price or production levels 0 are regulated by the government in order to provide fair pricing to consumers O are forced to advertise and market their goods to consumers Question 15 0 Mark this question Which of the following is true about marginal cost? 0 The marginal cost will consistently fall with an increase in production. 0 In the long run, every firm's marginal cost must equal zero. Marginal cost can be found at the intersection of a firm's budget constraints and production function. Marginal cost is the change in total cost that results from a single unit increase in the quantity produced. Question 16 0 Mark this question Assuming that Marley, a dairy farmer whose farm produces a number of dairy products, operates in a perfectly competitive market. Which of the following statements is true? The products he produces are identical and thus homogeneous. O No determination about his products can be made. 0 The products he produces are unique and varied. O The products he produces are similar but are differentiated by advertising. Question 17 O Mark this question Which scenario corresponds with economies of scale? 0 An increase in production will cause the cost ofthe next unit to increase. A decrease in production will cause the next unit to first increase in cost, then decrease, then increase again. 0 An increase in production will cause the cost of the next unit to decrease. O A decrease in production will cause the next unit to cost the same. Question 18 0 Mark this question Product Price Unit Cost Units Sold Units Produced Opportunity Costs $35.00 $5.00 100 1000 $750 Given the information in the table shown here, the economic profit is which of the following? 0 $1,500 0 -$2,250 0 $2,250 0 -$1,500 Question 19 0 Mark this question The additional income a company generates from selling one more unit due to this is called which of the following? 0 Diseconomies of scale 0 Price effect 0 Break even point 0 Output effect Question 20 0 Mark this question Given the information on this graph, this firm needs to produce which of the following number of units to break even? O10 O11