ECN 110 : M TB Sample Questions Ch 4.pdf

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fuchsiacat140

16 Oct 2014

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Multiple choice identify the choice that best completes the statement or answers the question. ___: there are thousands of wheat farmers who produce and sell wheat and there are millions of consumers who use wheat and wheat products. What would the market for wheat be considered: oligopolistic, monopolistic, perfectly competitive, monopolistically competitive. ___: alyssa rents 5 movies per month when the price is . 00 each and 7 movies per month when the price is law of price law of supply. What has alyssa demonstrated: actions of an irrational consumer law of demand. ___: what impact would a higher price for batteries tend to have? increase the demand for flashlights increase the demand for electricity, decrease the demand for electricity increase the demand for batteries. ___: what is the sum of all individual demand curves for a product? total demand, consumption demand, summation demand, market demand.

Related Questions

6. along a unit elastic demand curve, if the market price increases then

a. total revenue will remain the same

b. total revenue will increase

c. total revenue will be zero

d. total revenue will decrease

e. total cost will remain the same.

7. a good economic model should

a. present normative, not positive economic analysis

b. be a complete and accurate description of the real world.

c. be as complicated as possible

d. give the policy recommendation favored by the reasearcher

e. accurately explain or predict some aspect of the real world.

9. a unit elastic supply curve must

a. none of the answers are correct

b. be vertical

c. be horizontal

d. be a straight line out of the origin

e. be curved.

10. for a straight line demand curve, price elasticity of demand near the "choke price" where quantity demanded approaches 0 approaches

a. it depends on the price where quantity equals zero (vertical intercept)

b. zero

c.1

d. the slope of the demand curve

e. infinity

12. if two goods are substitutes, their corss-price elasticity will be

a. zero.

b. negative

c. positive

d. 1

13. alyssa rents 5 movies per month when the price is $3 each and 7 movies per month when the price is $2.50. this is the

a. law of supply

b. actions of an irrational customer

c. law of demand

d. law of price.

turquoisebee531

Classify each of the following businesses by their characteristics. For parts a. through d., write Pure Competition, Pure Monopoly, Monopolistic Competition or Oligopoly. Answer the questions in parts e. through h.

a. Rick owns a Greek restaurant in a small, rural town. There are four other restaurants in town and five other fast food establishments; however, none of the others sell Greek Cuisine. (6 pts.)

b. Katie owns her own research firm. Much by accident she stumbled onto a chemical combination that, when inhaled, cures the common cold in a matter of minutes with no adverse side effects. She has a patent on the new drug. (6 pts.)

c. Ted and Chris own the only two gas stations in a 40 mile radius. When Ted lowers his price, Chris quickly follows because his sales start to fall off very quickly. Ted experiences the same result when Chris decides to lower his price. (6 pts.)

d. Sophia owns a farm and produces wheat. When she takes her wheat to sell it, she can sell her entire harvest, but she has to accept the going price on the market because there are so many other wheat farmers. (6 pts.)

e. In which market structure is there the greatest opportunity for economic profits? (6 pts.)

f. In which market structure(s) are there no economic profits in the long run? (6 pts.)

g. Letâs assume that Monopolistically Competitive firms in a particular industry are earning short-run economic profits. What will happen? What will the end result be? (7 pts.)

h. Why wonât a purely competitive firm earn economic profits in the long run? (7 pts

assify each of the following businesses by their characteristics. For parts a. through d., write Pure Competition, Pure Monopoly, Monopolistic Competition or Oligopoly. Answer the questions in parts e. through h.

a. Rick owns a Greek restaurant in a small, rural town. There are four other restaurants in town and five other fast food establishments; however, none of the others sell Greek Cuisine. (6 pts.)

e. In which market structure is there the greatest opportunity for economic profits? (6 pts.)

f. In which market structure(s) are there no economic profits in the long run? (6 pts.)

g. Letâs assume that Monopolistically Competitive firms in a particular industry are earning short-run economic profits. What will happen? What will the end result be? (7 pts.)

h. Why wonât a purely competitive firm earn economic profits in the long run? (7 pts

ECN 110 : M TB Sample Questions Ch 4.pdf

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