Question 5 (1 point) At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a supply and demand graph and answer the following questions: a. Is there a shortage or surplus of avocados? How much is the shortage or surplus? b. Without any government intervention, what will happen to the price and quantity of avocados? c. Represent part b on a graph.The fallacy of composition is an issue related to migratory sea creatures. Private property rights can easily be established for chickens, but it is difficult to establish private W property rights for whale ownership. Whales impose externalities while chickens do not. 6 C There is diminishing marginal benefit when we consume too many whales, but not when we consume chickens. 9 Question 2 (1 point) What happens to the equilibrium price and quantity of new houses constructed in Fayette, Iowa if 2 i.) the price of lumber (an input in house production) falls at the same time ii) average income levels in Fayette, Iowa decrease and houses are normal goods? O The equilibrium price decreases and the equilibrium quantity falls. The equilibrium price decreases and the equilibrium quantity is indeterminate. The equilibrium price is indeterminate and the equilibrium quantity increases. The equilibrium price decreases and the equilibrium quantity increases. Question 3 (1 point) ~ Saved R is making a profit by producing footballs. There is notiowa.brightspace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=0&i... Maps G Translate Final Exam 2:43:13 rem Question 1 (1 point) Saved 3 Most countries have made it illegal to hunt, kill, and consume whales or use products made from whales, yet whales are still being hunted to extinction. Chickens on the other hand, are legal to kill 6 and eat. We consume millions of chickens in the U.S. each year, yet they are not threatened by extinction. How can we explain this? 9 O The fallacy of composition is an issue related to migratory sea creatures. O Private property rights can easily be established for chickens, but it is difficult to establish private 12 property rights for whale ownership. O Whales impose externalities while chickens do not. There is diminishing marginal benefit when we consume too many whales, but not when we consume 15 chickens. 18 Question 2 (1 point) What happens to the equilibrium price and quantity of new houses constructed in Fayette, Iowa if i.) the price of lumber (an input in house production) falls at the same time 21Translate Exam O 2:4 Question 3 (1 point) Saved Firm A notices that Firm B is making a profit by producing footballs. There is nothing stopping Firm A from entering the football market, so it does. Holding all else constant, the number of firms in the market will increase, causing demand to increase. increase, causing the supply to shift down. decrease, causing the supply to decrease. decrease, causing the supply to increase. increase, causing the supply to increase. Question 4 (1 point) Saved An improvement in technologyMy Apps X D2L Week 5 DQ 2- Thom x D2L Quizzes - ECON-160 x CengageNOWv2 | Or x Civil Engineering bac a.brightspace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=08 laps Translate al Exam Question 4 (1 point) Saved W An improvement in technology V O is one way to shift the demand curve. 6 always increases producers' profits. allows a producer to decrease output with the same amount of input. 9 allows a producer to increase output with the same amount of input. shifts the supply curve to the left. Question 5 (1 point) At the farmer's market in Irvine, California, the price of avocados is set at $3Exam Question 6 (1 point) When both supply and demand shift to the left, the equilibrium price always rises. price always falls. O quantity always falls. quantity always rises. quantity is indeterminate. Question 7 (1 point) Pepsi and Coke are considered substitute goods. Because of this, one woX D2L Week 5 DQ 2- Thom D2L Quizzes - ECON-160 x CengageNOWv2 | Or x Civil Engineering bac x e.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=0&i.. nslate O 2:42 Question 7 (1 point) Pepsi and Coke are considered substitute goods. Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we would see the demand curve for Coke shift to the right. the demand curve for Coke shift to the left. no change in the demand for Coke. the demand curve for Pepsi shift to the right. the demand curve for Pepsi shift to the left. Question 8 (1 point)Army Contin space.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=0&i... 0 Translate am O 2:42:35 remain Question 8 (1 point) When the government places a tax on a good and all else is held constant, which of the following would most likely happen? The overall consumption of the good decreases, assuming the good does not have a vertical demand curve. The price the buyer pays for the good decreases, assuming the good does not have a horizontal demand curve. The supply curve shifts to the right. The government receives no tax revenue if the tax is more than 20 percent. The price and quantity adjust back to the competitive market equilibrium point. Question 9 (1 point) the fact thatG Translate | Exam 2:42:28 re () Ine government receives no tax revenue it the tax is more than 20 percent. The price and quantity adjust back to the competitive market equilibrium point. 3 Question 9 (1 point) 6 The change in an equilibrium value is sometimes indeterminate due to the fact that it is possible for demand to increase or decrease more than supply increases or decreases. demand always shifts less than supply. supply always shifts less than demand. both supply and demand may not change. both supply and demand may increase or decrease by equal amounts. Question 10 (1 point) Refer to the following table to answer the following questions. Quantity QuantityYouTube Maps Translate M7: Final Exam 2:42:19 remaining Page 1: Question 10 (1 point) 1 2 3 Refer to the following table to answer the following questions. Quantity Quantity Price 4 Demanded U 6 Supplied $10.00 10 100 $8.00 20 80 8 9 $6.00 30 60 $4.00 40 40 $2.00 50 20 10 11 12 $0.00 60 O 13 14 15 If the price of this good is $2.00, there would be a of units. 16 17 18 O shortage; 20 surplus; 50 19 20 21 shortage; 30 surplus; 30 O surplus; 20 Question 11 (1 point)Question 11 (1 point) Spam is considered an inferior good. What would happen to the equilibrium price and quantity of Spam if income decreased and more firms started producing Spam? O Equilibrium price will go up and equilibrium quantity will go down. Equilibrium price will go up and equilibrium quantity will go up. Equilibrium price will go down and equilibrium quantity will be indeterminate. Equilibrium price will be indeterminate and equilibrium quantity will go up. Equilibrium price will go up and equilibrium quantity will be indeterminate. Question 12 (1 point) If a new french fry-cutting machine works twice as fast as the old machine, Mcdonald's would be willing to produce and sell fewer french fries at every price. be making less profit.Question 12 (1 point) If a new french fry-cutting machine works twice as fast as the old machine, Mcdonald's would be willing to produce and sell fewer french fries at every price. be making less profit. be willing to produce and sell more french fries at every price. lose customers. pay its employees more. Question 13 (1 point) The presence of a perfectly competitive market typically leads to O less welfare C more consumer surplus less producer surplusQuestion 13 (1 point) The presence of a perfectly competitive market typically leads to 6 less welfare C more consumer surplus 9 O less producer surplus greater inefficiency 12 Question 14 (1 point) The value of the marginal product is 15 total output divided by total inputs. 8 the marginal product of an input times the price of the output. the change in total output divided by the change of an input. O total revenue minus total cost. marginal revenue minus marginal cost.Question 15 (1 point) The following graph represents Zendar's labor market. Use this graph to answer the following questions: Wage 50 ($) 45 40 35 30 25 20 15 10 10 20 25 30 40 50 Quantity What is the equilibrium number of workers in Zendar? 20 25 30 35 402:41:35 remaining X Question 16 (1 point) Refer to the following graphs to answer the following questions: A. P D2 D1 Q B. P D1 D2 QQuestion 17 (1 point) The following graph represents Zendar's labor market. Use this graph to answer the following questions: Wage 50 ($) 45 40 35 30 25 20 15 10 10 20 25 30 40 50 Quantity At all wages below there will be $10; a surplus $25; a shortage $40; a surplus O $35; no labor supplied $20; no labor demandedQuestion 18 (1 point) Graph the following labor supply curves: a. The substitution effect dominates the income effect until the wage reaches $200, after which the income effect dominates. b. The income and substitution effects do not affect the worker's decision. She wants to work only 40 hours every week. A/ Question 19 (1 point) Assume that the Welter Company is renting capital and hiring labor such that the bang per buck from each resource is the same. If wages of labor increase, its use of labor and capital O increases; fallsQuestion 19 (1 point) Assume that the Welter Company is renting capital and hiring labor such that the bang per buck from each resource is the same. If wages of labor increase, its use of labor and capital O increases; falls falls; falls increases; increases stays the same; falls falls; increases Question 20 (1 point) Lorelei finds that she is consistently unable to fill all of the open positions at her bakery. This indicates that the wage she is offering is above the market rate. at the market rate.Ofalls; increases W Question 20 (1 point) 6 Lorelei finds that she is consistently unable to fill all of the open positions at her bakery. This indicates that the wage she is offering is 9 O above the market rate. C at the market rate. 12 double what her competitors are offering their employees. half of what her competitors are offering their employees. 15 O below the market rate. Question 21 (1 point) 18 One of the primary causes of diminishing marginal product is 21 increasing marginal cost. increasing price. O decreasing marginal cost. diminishing total cost.2:40:28 remaining Question 22 (1 point) 57 Refer to the following graphs to answer the following questions: Wage A. D. Wage Q Wage | B. E. Wage S S C. Wage2:40:20 remaining O Graph D Graph E Question 23 (1 point) Ummal travels back in time to deposit $100 in a high-interest-bearing savings account. When she returns to the present, she is a billionaire. We can expect Ummal to work hours because of the effect. more; substitution O more; income fewer; substitution O more; labor-leisure fewer; income Question 24 (1 point) Upper Iowa University recently determined that the price elasticity of demand for attending their school is ED = 1.3. The administration is considering a tuition increase to help balance their budget. The best revenue-maximizing strategy is to do nothing based on this information. Information regarding elasticity is not relevant when making2:40:14 remaining fewer; income 57 Question 24 (1 point) 60 Upper Iowa University recently determined that the price elasticity of demand for attending their school is ED = 1.3. The administration is considering a tuition increase to help balance their budget. The best revenue-maximizing strategy is to 63 O do nothing based on this information. Information regarding elasticity is not relevant when making decisions that affect revenue. 66 O leave tuition as it is, changing tuition would not help the budget. O increase tuition, which would generate more revenue. 69 decrease tuition, which should boost enrollment enough to balance the budget. Question 25 (1 point) The process of using current resources to create or buy new capital is called O absolute advantage. on O comparative advantage. investment. the law of increasing relative cost.Question 26 (1 point) 56 57 A positive statement is a claim that can be tested. 59 60 O is a statement about what ought to be. O is a declaration of opinion. 52 63 is a claim that cannot be tested. O cannot be evaluated using the scientific method. 5 66 Question 27 (1 point) 69 The movie Saving Private Ryan is about a military mission to find and recover a particular soldier-Private Ryan. The movie is predominantly about how much was given up in an effort to save this one particular soldier. The main economic theme of the movie is absolute advantage. ation O opportunity cost. O normative analysis. Ocomparative advantage. nocitive advantaaninal Exam 2:40:00 remaining X Question 28 (1 point) 57 One reason that economists make assumptions when designing models is to 60 exclude variables that do not add predictive power to the model. make models more like the real world. 63 O make models more complex. increase endogenous factors. 66 ensure that all possible factors are included. Question 29 (1 point) 69 Refer to the following figure for the following questions. Apple Pies 16- K 14+ 12 on M 8 - PPF NQuestion 29 (1 point) 57 Apple Pies Refer to the following figure for the following questions. J 16- K 60 14 12 M 63 PPF N 66 15 18 Blueberry Pies 69 The opportunity cost of increasing the production of apple pies from 12 to 14 pies is pies. 2 blueberry 14 apple 7 blueberry 4 blueberry 2 apple on 30 (1 point)nal Exam 2:39:46 remaining X / blueberry 57 4 blueberry 2 apple 60 Question 30 (1 point) What assumptions do economists make when developing a production possibilities 63 frontier (PPF)? 66 A 69 -- Question 31 (1 point) When one producer can create more of a good than another producer using the on same quantity of resources, the first producer has O a zero-sum game. gains from trade.inal Exam O 2:39:40 remaining X Question 31 (1 point) 57 When one producer can create more of a good than another producer using the same quantity of resources, the first producer has 60 a zero-sum game. 63 gains from trade. an absolute advantage. 66 O a comparative advantage. increasing relative costs. 69 Question 32 (1 point) Ceteris paribus means O in sets of two. constant opportunity cost. tion other things being equal. buyer beware. there is no reason to argue about people's tastes.Final Exam O 2:39:34 remaining X 6 57 Question 33 (1 point) The scientific method and the tools of economics are useful in examining 60 O only how individuals make decisions. only how business firms make decisions. 63 O only how government policies affect macroeconomic outcomes. O only the trade-offs evident in the production possibilities frontier (PPF). 66 O anything; economists will use their tools to study anything in the world around them. 69 Question 34 (1 point) The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the following questions. Gibbs tion Wooden Boats 3N Maps Translate : Final Exam O 2:39:29 remaining X -- Question 34 (1 point) The figures below depict the production possibilities frontiers (PPFs) for two people 56 57 who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the following questions. Gibbs 59 60 Wooden Boats 62 63 3 66 30 8 69 Crimes Solved DiNozzo Wooden Boats nation O 207: Final Exam 2:39:23 remaining 20 56 57 Crimes Solved What is DiNozzo's opportunity cost for solving a crime? 59 60 20 solved crimes 62 63 30 solved crimes 5 solved crimes 65 66 1/20 of a boat 1/10 of a boat 68 69 Question 35 (1 point) Ferris is deciding whether to buy a leopard-print vest OR blue suede shoes. He estimates he will receive 80 utils from the shoes and 100 utils from the vest. The shoes cost $40 and the vest costs $100. If income is not an issue for Ferris and he is a rational consumer then he should Buy the shoes and the vest because the utilities per dollar they provide are equal for both products. rmation O Buy the vest because it provides more utils than the shoes. Buy the shoes because they cost less than the vest. Buy the shoes because they provide more utility per dollar spent.M7: Final Exam 2:39:17 remaining Question 36 (1 point) 55 56 57 Natural Gas B9 59 60 PPFIran 61 62 63 PPF Saudi Arabia 64 65 66 Oil 67 68 69 According to the graph above, if these two countries apply the law of comparative advantage then O Saudi Arabia should produce both natural gas and oil and Iran should produce neither natural gas nor 70 oil Saudi Arabia should produce oil and Iran should produce natural gas. O Saudi Arabia should produce both wheat and oil and Iran should produce both natural gas and oil. uiz Information Saudi Arabia should produce natural gas and Iran should produce oil. Question 37 (1 point) Binding rent controls lead to:Question 37 (1 point) 55 56 57 Binding rent controls lead to: O 58 59 60 shortages of apartments. lower search costs. O 61 62 63 more efficient use of apartments. better quality apartments. O 64 65 66 Question 38 (1 point) A pure market economy is likely to underprovide a product causing a positive externality like flu shots 67 68 69 because private firms value health less than public firms. 70 it is generally impossible to enforce laws mandating flu shots. O the consumers are poorly informed as to the benefits of flu shots. Quiz Information O consumers are not internalizing all of the benefits of flu shots. Question 39 (1 point) Betty spends $100,000 to buy a small storefront building in downtown Fayette, Iowa. She is an artist and MacBook Airit is generally impossible to enforce laws mandating flu shots. 56 57 the consumers are poorly informed as to the benefits of flu shots. O consumers are not internalizing all of the benefits of flu shots. 59 60 Question 39 (1 point) Betty spends $100,000 to buy a small storefront building in downtown Fayette, Iowa. She is an artist and 63 wants to make artistic designs and then screen prints her designs onto t-shirts. She spends $10,000 on a large screen printing machine. Each time she prints a t-shirt, she spends $4 on the plain t-shirt because she 5 66 wants to use organic cotton shirts. The ink for each shirt costs $1 and she estimates that her labor cost for the production of 1 shirt is $1. What is the average total cost (ATC) of producing 200 t-shirts? 69 $556 $550 $6 C $4 ation Question 40 (1 point) Monopoly leads to an inefficient level of the production of goods. This means that the total social benefit is not as high as it could be.laps Translate al Exam 2:38:59 remaining X Question 40 (1 point) 57 Monopoly leads to an inefficient level of the production of goods. This means that 60 the total social benefit is not as high as it could be. O the monopolist's production costs are higher than necessary. 63 government tax collected from the monopolist is less than it might be. O externalities are not as large as they should be. 66 O fewer people are employed than might be. Question 41 (1 point) 69 Refer to the accompanying figure to answer the following questions. Price ATC $34 MC $26 $18 $13upperiowa.brightspace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&ispry=&qi=109124&cfql=0&dnb=0&fromQB=0&i... uTube Maps G Translate Relaunch M7: Final Exam 2:38:53 remaining X Question 41 (1 point) 35 56 57 Refer to the accompanying figure to answer the following questions. Price ATC 58 59 50 $34 . MC $26 61 62 63 $18 $13 14 65 66 MR D 20 30 Quantity 68 69 This profit-maximizing firm's total profit is equal to $160. O $160. Information $320. O -$320. $100.O 2:38:46 remaining X Question 42 (1 point) 57 Price| Refer to the accompanying figure to answer the following questions. 60 63 $50 66 $30 69 MR D 30 45 Quantity When the price changes from $50 to $30, the price effect leads to a loss of in revenue. ion $20 O $15 $900 MacBook Air2:38:39 remaining X $600 57 $450 Question 43 (1 point) 60 Economists view rent seeking as 63 a good way to inspire competition between firms. a good way to incentivize firms to invest in research and development. 66 O essential to solving the problem of scarcity. O a detrimental form of competition. 69 O beneficial to the consumer. Question 44 (1 point) Control of resources is an example of tion O an externality. O consumer surplus. O a government-created barrier. O a natural barrier. MacBook Airnaining X a natural barrier. rent seeking. Question 45 (1 point) The typical result of monopoly is prices and output than we find in a competitive market. lower; lower higher; higher higher; lower O lower; higher O higher; the same Question 46 (1 point) Which of the following is a characteristic of a monopoly but not a characteristic of a competitive market? A monopoly contains many firms. O A monopoly produces an efficient level of output. A producer in a monopoly may earn long-run economic profits. MacBook Airinal Exam 2:38:23 remaining X A producer in a monopoly is a price taker. 57 Question 47 (1 point) The demand curve for the product of a firm in a competitive market is and 60 the demand curve for the product of a monopolist is. O horizontal; downward sloping 63 O horizontal; horizontal O downward sloping; upward sloping 66 O downward sloping; horizontal O upward sloping; downward sloping 69 Question 48 (1 point) Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the following questions. Price Quantity Fixed Cost Variable Cost tion $15 O $5 $0 $13 $5 $4 $11 N $5 $9 $9 W $5 $14 $7 4 $5 $20MUCOLIVII TU I1 PULLLY Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the following questions. Price Quantity Fixed Cost Variable Cost $15 O $5 $0 $13 $5 $4 $11 2 $5 $9 $9 3 $5 $14 $7 4 $5 $20 $5 5 $5 $29 The profit-maximizing quantity for this firm is O zero. one. three. four. five. Question 49 (1 point)ranslate m O 2:38:09 remaining X Question 49 (1 point) Willow Park is a small community in Texas with only one gas station. The price of gasoline in Willow Park most likely O never changes. O is lower than in the big cities in Texas. is determined by competitive market forces. O is higher than in the big cities in Texas. O produces a surplus of gasoline. Question 50 (1 point) Refer to the following table to answer the following questions: Strawberries Apples Total Consumed Total Utility Consumed Utility 0 7 14 13 N 2 26 18 3 36: Final Exam 2:38:03 remaining Refer to the following table to answer the following questions: 56 57 Strawberries Apples Total Consumed Total Utility Consumed Utility O O 59 60 7 1 14 13 N 26 62 63 18 3 36 4 22 4 44 5 25 15 50 66 16 27 6 54 7 28 V 56 8 69 Assume that strawberries cost $1 and apples cost $2. If the consumer has $16, the bundle of goods that would maximize her utility per dollar leads to a utility equal to utils. nation 48 84 O 77 66inal Exam O 2:37:55 remaining X Refer to the following table to answer the following questions: Strawberries Total 57 Apples Consumed Total Utility Consumed Utility O O O O 60 1 14 13 J NP 26 3 18 3 36 53 4 22 4 44 5 25 15 50 6 27 6 54 66 28 56 69 If the purchase of 5 strawberries and 5 apples maximizes your utility per dollar, the price of strawberries must be if the price of apples is $3.00. $1.00 on $2.00 $1.50 $2.50 $3.00anslate m O 2:37:47 remaining X Question 52 (1 point) For a consumer, which of the following statements about the real-income effect is true? It matters only when prices change enough to cause a measurable effect on the purchasing power of a consumer's income. It can be observed for any price change. C It occurs when a consumer buys more of a good as a result of a relative price change. C It matters only when prices change enough to cause a consumer to purchase more of the good whose price changed. The purchasing power of your income increases when the price of a good increases. Question 53 (1 point) Refer to the following figure to answer the following questions: Price $40Refer to the following figure to answer the following questions: Price $40 $15 D 20 30 Quantity A(n) represents the various combinations of two goods that yield the same level of satisfaction or utility. O maximization point economic good economic bad O indifference curve budget constraintal Exam O 2:37:31 remaining X Question 54 (1 point) 57 Diminishing marginal utility is a decline in with each additional 60 O units consumed; utility O utility; util 63 O unit; satisfaction O satisfaction; unit 66 Outils; increase 19 Question 55 (1 point) Explain a situation in which the real-income effect is not observed when the price of a good decreases.=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=0&i... GKIM Relaund Maps Translate Final Exam 2:37:23 remaining X Question 56 (1 point) 6 57 Refer to the following figure: Total | Utility 60 50 45 42 38 33 63 28 66 15 6 8 69 Number of Tacos a. What is the marginal utility of the third and eighth tacos? b. Does this consumer experience diminishing marginal utility? If so, after which taco does he or she experience it? c. Does this consumer experience negative marginal utility? If so, after which taco does he or she experience it? ion A=0&fromQB=0&i... D M Relaunch to update Maps Translate nal Exam O 2:37:10 remaining X 45 42 38 57 33 28 60 15 / 63 8 Number of Tacos a. What is the marginal utility of the third and eighth tacos? b. Does this consumer experience diminishing marginal utility? If so, after which 66 taco does he or she experience it? c. Does this consumer experience negative marginal utility? If so, after which taco 69 does he or she experience it? Question 57 (1 point) Sunnose Tamara's favorite arcade game PAC-MAN costs $1 to play and her secondMy Apps D2L Week 5 DQ 2- Thom: x D2L Quizzes - ECON-160 x CengageNOWv2 | Or Civil Engineering bac periowa.brightspace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=0&i... Army Continuing Edu Maps Translate M Relaunch to up : Final Exam 2:37:03 remaining X -- 56 57 Question 57 (1 point) Suppose Tamara's favorite arcade game, PAC-MAN, costs $1 to play and her second- 59 60 favorite arcade game, Street Fighter, costs 50 cents to play. If she receives 10 utils when she plays Street Fighter, what is the least number of utils she must receive from PAC-MAN to play PAC-MAN over Street Fighter? 62 63 15 O 10 66 25 69 0 5 O 20 Question 58 (1 point) Refer to the following indifference curve. The marginal rate of substitution (MRS) ation between points A and B is Slices of pizza A ( 1 , 5 )upperiowa.brightspace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=0&i... [ uTube Maps Translate OM Relaunch to M7: Final Exam 2:36:56 remaining X Refer to the following indifference curve. The marginal rate of substitution (MRS) between points A and B is 55 56 57 Slices of pizza 5 A (1,5) 58 59 60 4 61 62 53 3 B (2,3) +1 1 C (3,2) 2 4 65 66 +1: D (7,1) Indifference curve 68 69 0 1 2 3 4 5 6 7 8 9 10 Cans of Pepsi O -1 O-2 Information Q-1/2 1/2 O 1al Exam O2:36:48 remaining X Question 59 (1 point) 57 In July 2012, it cost $125 to purchase a ticket to visit the parks at Disneyland for one day. A five-day pass to the same parks cost only $290. Disneyland charges less for the additional days because of 60 the real-income effect. diminishing marginal utility. 63 marginal utility. the substitution effect. 66 the consumer optimum. 69 Question 60 (1 point) A convenience store is generally able to charge and obtain a higher price for its candy bars than Walmart because the convenience store O differentiates based on style. differentiates based on location. differentiates based on quality. advertises that its candy bars are identical to those sold at Walmart. O differentiates based on high barriers to entry, such as patents. MacBook AirRefer to the following graph to answer the following questions: Price, Marginal Costs, and 57 Cost Revenue Dollars) Rd Average Total Cost 60 63 Demand 66 Marginal Revenue 4 50 60 Units of 69 Output The maximum long-run economic profit earned by this monopolistically competitive firm is O o (zero). lon represented by the rectangle a, b, c, d. represented by the rectangle enclosed by the points 50, 0, c, and b. represented by the area below the demand curve and above marginal cost. greater than 0, but can't be shown in the diagram because it is an indefinable MacBook AirM7: Final Exam 2:36:31 remaining X With monopolistic competition, firms have demand curves that are the 5 56 57 lowest possible cost. -- unrelated to 59 60 correlated with identical to 62 63 above below 65 66 Question 63 (1 point) 68 69 Low barriers to entry and exit mean that in the run for monopolistically competitive firms, it is to generate economic profit. short; possible short; impossible nformation long; possible long; impossible O long; likely MacBook Airpace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv-&qi=10 Translate am 2:36:23 Compare and contrast the three market models in terms of the profit-maximizing output level for each, the shutdown rule for each, and the probability of long-run economic profits being earned. A Question 65 (1 point) Profit-maximizing, monopolistically competitive firms consider the actions of their competitors when determining price. consider the actions only of the price leader in their market when determiningMy Apps D2L Week 5 DQ 2- Thom X D2L Quizzes - ECON-160 x CengageNOWv2 | 01 X Civil Engineering bac . X Army Continuing Edu brightspace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=132897&isprv=&qi=109124&cfql=0&dnb=0&fromQB=0&i... Relaunch to ps Translate al Exam O 2:36:14 remaining X Question 65 (1 point) 57 Profit-maximizing, monopolistically competitive firms consider the actions of their competitors when determining price. 60 consider the actions only of the price leader in their market when determining price. 63 O consider only marginal cost and marginal revenue, which determine the level of output-and the level of output determines price. 66 consider only average total cost and average variable cost, which determine the level of output-and the level of output determines price. take their price from the industry price, as do perfectly competitive firms. 9 Question 66 (1 point) Advertising is designed to increase the price elasticity of demand for the firm and shift the firm's demand curve rightward. decrease the price elasticity of demand for the firm and shift the firm's demand17: Final Exam O 2:36:07 remaining X -- Advertising is designed to 56 57 increase the price elasticity of demand for the firm and shift the firm's demand curve rightward. 59 60 decrease the price elasticity of demand for the firm and shift the firm's demand curve rightward. O increase the price elasticity of demand for the industry and shift the firm's 62 63 demand curve rightward. O decrease the price elasticity of demand for the industry, but have no effect on 65 66 the firm's demand. O cause the income elasticity of consumers to become zero. 68 69 Question 67 (1 point) Monopolistically competitive firms eventually become perfectly competitive. follow the price leader. formation O earn long-run economic profits. O necessarily earn short-run economic profits. "compete away" economic profit to zero.inal Exam Refer to the following graph to answer the following questions: Price, Marginal Costs, and 6 57 Revenue (Dollars) Average Total Cost 60 63 Demand 66 Marginal Revenue 50 60 Units of Output 69 The short-run profit-maximizing output for the monopolistic competitive firm is units per week. Oo (zero) tion 50 0 60 85 90al Exam 2:35:51 remainin 60 57 85 90 60 Question 69 (1 point) You shop at the local drugstore because it is convenient. This situation is best 63 described as O differentiation by style or type. 66 O differentiation by a cartel. monopolistic competition with differentiation by location. 69 a market with horizontal demand. perfect competition because there are so many drugstores in the area. Question 70 (1 point) (FIRM) (MARKET) P MC $35 ATC $35 $30 TAVC $30 .... $25lowa X My Apps X D21 Week 5 DQ 2- Thom X D2L Quizzes - ECON-160 x CengageNOWv2 | Or x Civil Engineering bac Army Continuing Ed upperiowa. brightspace.com/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d2|?ou=132897&isprv=&qi=109124&cfal=0&dnb=0&fromQB=0&i... Relaunch to update Tube Maps Translate M7: Final Exam 2:35:44 remaining X -- perfect competition because there are so many drugstores in the area. 55 56 57 Question 70 (1 point) (MARKET) 59 60 P $35 $35 $30 $30 62 63 $25 $25 $20 $20 $15 $15 $10 $10 65 66 $ 5 $5 68 69 Consider the perfectly competitive market depicted in the graphs. Assuming the market is in equilibrium, what should this firm do? leave the market permanently in the long run keep producing in the short run Information shut down temporarily in the short run lay off workers temporarily in the short run