Question 16
-
If price is cut and demand is elastic, total revenue will rise because
the change in quantity demanded is greater than the percent change in price.
the percent change in quantity demanded is greater than the change in price.
the percent change in quantity demanded is greater than the percent change in price.
customers can't find substitutes.
3 points
Question 17
-
If price is cut and demand is inelastic, total revenue will fall because
the change in quantity demanded is less than the percent change in price.
the percent change in quantity demanded is less than the change in price.
the percent change in quantity demanded is less than the percent change in price.
customers can find substitutes.
3 points
Question 18
-
If something is addictive, then
price and demand are inversely related.
price elasticity of demand is equal to one.
demand is perfectly inelastic.
demand is perfectly elastic.
3 points
Question 19
-
In general, elasticities measure
the change in quantity demanded when a product attribute changes.
the change in consumer spending when income changes.
the change in an attribute for a percentage change in price.
the percentage change in the quantity demanded resulting from a fixed percentage change in some attribute.
3 points
Question 20
-
Average total costs are defined as
total costs divided by the change in output.
total costs divided by output.
the change in total costs when output changes.
average variable costs plus marginal costs.
3 points
Question 21
-
If a firm is experiencing economies of scale, then the long-run average cost curve is
falling.
rising.
horizontal.
shifting.
3 points
Question 22
-
If average total cost is rising
marginal cost is above average total cost.
marginal cost is rising.
marginal product is rising.
marginal cost is above average total cost and is falling.
3 points
Question 23
-
The period of time over which all inputs are variable is the
market horizon.
short run.
calendar year.
long run.
3 points
Question 24
-
The supply chain refers to
the supply curve.
the process of outsourcing.
the process of downsizing.
the process of creating and selling a product.
3 points
Question 25
-
When the capital (a fixed input) changes
short-run marginal costs rise.
short-run average total costs fall but do not shift.
labor inputs decline.
the short-run average total cost curve shifts.
3 points
Question 26
-
A market of price takers is called
perfectly competitive.
monopolistically competitive.
a monopoly.
an oligopoly.
3 points
Question 27
-
A market with a single seller is called
perfectly competitive.
monopolistically competitive.
a monopoly.
an oligopoly.
3 points
Question 28
-
A market that mainly stresses product differentiation is called
perfectly competitive.
monopolistically competitive.
a monopoly.
an oligopoly.
3 points
Question 29
-
Entry into a competitive market will continue until
economic profits are zero.
normal profits are zero.
when accounting losses are zero.
a. and b. are true
3 points
Question 30
-
Firms in an oligopoly
act independently.
engage in strategic behavior.
have perfect knowledge of the behavior of others.
openly collude.
Question 16
-
If price is cut and demand is elastic, total revenue will rise because
the change in quantity demanded is greater than the percent change in price.
the percent change in quantity demanded is greater than the change in price.
the percent change in quantity demanded is greater than the percent change in price.
customers can't find substitutes.
3 points
Question 17
-
If price is cut and demand is inelastic, total revenue will fall because
the change in quantity demanded is less than the percent change in price.
the percent change in quantity demanded is less than the change in price.
the percent change in quantity demanded is less than the percent change in price.
customers can find substitutes.
3 points
Question 18
-
If something is addictive, then
price and demand are inversely related.
price elasticity of demand is equal to one.
demand is perfectly inelastic.
demand is perfectly elastic.
3 points
Question 19
-
In general, elasticities measure
the change in quantity demanded when a product attribute changes.
the change in consumer spending when income changes.
the change in an attribute for a percentage change in price.
the percentage change in the quantity demanded resulting from a fixed percentage change in some attribute.
3 points
Question 20
-
Average total costs are defined as
total costs divided by the change in output.
total costs divided by output.
the change in total costs when output changes.
average variable costs plus marginal costs.
3 points
Question 21
-
If a firm is experiencing economies of scale, then the long-run average cost curve is
falling.
rising.
horizontal.
shifting.
3 points
Question 22
-
If average total cost is rising
marginal cost is above average total cost.
marginal cost is rising.
marginal product is rising.
marginal cost is above average total cost and is falling.
3 points
Question 23
-
The period of time over which all inputs are variable is the
market horizon.
short run.
calendar year.
long run.
3 points
Question 24
-
The supply chain refers to
the supply curve.
the process of outsourcing.
the process of downsizing.
the process of creating and selling a product.
3 points
Question 25
-
When the capital (a fixed input) changes
short-run marginal costs rise.
short-run average total costs fall but do not shift.
labor inputs decline.
the short-run average total cost curve shifts.
3 points
Question 26
-
A market of price takers is called
perfectly competitive.
monopolistically competitive.
a monopoly.
an oligopoly.
3 points
Question 27
-
A market with a single seller is called
perfectly competitive.
monopolistically competitive.
a monopoly.
an oligopoly.
3 points
Question 28
-
A market that mainly stresses product differentiation is called
perfectly competitive.
monopolistically competitive.
a monopoly.
an oligopoly.
3 points
Question 29
-
Entry into a competitive market will continue until
economic profits are zero.
normal profits are zero.
when accounting losses are zero.
a. and b. are true
3 points
Question 30
-
Firms in an oligopoly
act independently.
engage in strategic behavior.
have perfect knowledge of the behavior of others.
openly collude.