QUESTION 31

1. When there are many buyers and sellers of a good and the product sold is identical across firms:

	A	the demand curve for each firm's output is perfectly elastic.
	B	the industry demand curve is perfectly elastic.
	C	the demand curve for each firm's output is perfectly inelastic.
	D	the industry demand curve is perfectly inelastic.

1 points

QUESTION 32

1. What is the Invisible Hand Property 1?

	A	Central planners can achieve lower costs of production than self-interested profit-seeking firms.
	B	In a free market, the total costs of producing output are minimized because each firm produces up to the point whereP=MC.
	C	Firms enter industries wheneverP>AC.
	D	Firms shut down whenever revenues are insufficient to cover variable costs.

1 points

QUESTION 33

1. Which one would NOT be considered a network good?

	A	Snapchat
	B	Facebook
	C	Gmail
	D	Instagram

1 points

QUESTION 34

1. Which of the following is NOT a reason why cartels collapse?

	A	cheating by the cartel members
	B	new entrants and demand response
	C	government prosecution
	D	increasing production costs

1 points

QUESTION 35

1. In 2018, the Ford Motor Company announced it would discontinue production of most of its current models in favor of a more profitable production of SUVs. This reflects the principle of:

	A	the minimization of total costs of production.
	B	the balance of industries.
	C	creative destruction.
	D	the invisible hand.

1 points

QUESTION 36

1. OPEC is a(n) _____ of oil-exporting countries.

	A	cartel
	B	group
	C	monopoly
	D	oligopoly

1 points

QUESTION 37

1. Which goods represent network goods?

	A	Pepsi, toilet paper, headphones
	B	calculator, oven, couch
	C	Twitter, Microsoft Excel, Facebook
	D	fireworks, lighthouse, swimming pool

1 points

QUESTION 38

1. Multiple products can thrive in a network industry when:

	A	the government decides to allow multiple products.
	B	consumers don't care about coordination at all.
	C	there are multiple niches to fill; each product can dominate one niche.
	D	competitors all go after the same niche.

1 points

QUESTION 39

1. Implicit costs:

	A	should not be considered in the profit-maximizing decision.
	B	should be inlcuded in costs when profit maximizing.
	C	are not important to economists.
	D	are always unknown to firms.

1 points

QUESTION 40

1. Competitive firms want to enter industries in which:

	A	P=MC
	B	P
	C	P>AC
	D	P