1. Which one of the following is the least-likely to be subject to exploitation as a common property resource?
A. The atmosphere
B. An open-ocean fishery
C. A public park
D. A parking lot
E. A river
2. What is the typical shape of a total product curve?
A. An S-shape
B. A U-shape
C. An inverted U-shape
D. A constantly increasing line
E. A constantly decreasing line
3. The open access equilibrium for a common property resource occurs at the point where...
A. Average revenue equals marginal cost
B. Total social benefits are maximized
C. Total private benefits are maximized
D. Marginal revenue equals marginal cost
E. Marginal revenue equals total costs
4. The economic optimum production level for a common property resource occurs where ...
A. Total revenue equals total costs
B. Average revenue equals marginal cost
C. Average revenue equals average cost
D. Marginal revenue equals total costs
E. Marginal revenue equals marginal cost
5. The open access equilibrium is usually ...
A. Economically efficient but ecologically unsustainable
B. Economically efficient and ecologically sustainable
C. Economically inefficient but ecologically sustainable
D. Neither economically efficient nor ecologically sustainable
E. Highly profitable for resource users
6. Which one of the following variables is most likely to increase as production effort is increased?
A. Net revenue
B. Marginal costs
C. Marginal revenue
D. Total costs
E. Average revenue
7. Which one of the following variables is most likely to decline as production effort increases?
A. Marginal cost
B. Total revenue
C. Marginal revenue
D. Total costs
E. Total production
8. The efficient price of a license fee is determined by the difference between ...
A. Marginal revenue and marginal cost
B. Average revenue and marginal cost
C. Total revenue and total cost
D. Average revenue and total cost
E. Total revenue and marginal cost
9. Which one of the following statements is false?
A. The economically optimal level of production is less than the open-access equilibrium level of production
B. The economically optimal level of production occurs at the maximum sustainable yield
C. Charging a license fee for access to a common resource will reduce the production level below the open-access equilibrium
D. The
1. Which one of the following is the least-likely to be subject to exploitation as a common property resource?
A. The atmosphere
B. An open-ocean fishery
C. A public park
D. A parking lot
E. A river
2. What is the typical shape of a total product curve?
A. An S-shape
B. A U-shape
C. An inverted U-shape
D. A constantly increasing line
E. A constantly decreasing line
3. The open access equilibrium for a common property resource occurs at the point where...
A. Average revenue equals marginal cost
B. Total social benefits are maximized
C. Total private benefits are maximized
D. Marginal revenue equals marginal cost
E. Marginal revenue equals total costs
4. The economic optimum production level for a common property resource occurs where ...
A. Total revenue equals total costs
B. Average revenue equals marginal cost
C. Average revenue equals average cost
D. Marginal revenue equals total costs
E. Marginal revenue equals marginal cost
5. The open access equilibrium is usually ...
A. Economically efficient but ecologically unsustainable
B. Economically efficient and ecologically sustainable
C. Economically inefficient but ecologically sustainable
D. Neither economically efficient nor ecologically sustainable
E. Highly profitable for resource users
6. Which one of the following variables is most likely to increase as production effort is increased?
A. Net revenue
B. Marginal costs
C. Marginal revenue
D. Total costs
E. Average revenue
7. Which one of the following variables is most likely to decline as production effort increases?
A. Marginal cost
B. Total revenue
C. Marginal revenue
D. Total costs
E. Total production
8. The efficient price of a license fee is determined by the difference between ...
A. Marginal revenue and marginal cost
B. Average revenue and marginal cost
C. Total revenue and total cost
D. Average revenue and total cost
E. Total revenue and marginal cost
9. Which one of the following statements is false?
A. The economically optimal level of production is less than the open-access equilibrium level of production
B. The economically optimal level of production occurs at the maximum sustainable yield
C. Charging a license fee for access to a common resource will reduce the production level below the open-access equilibrium
D. The
Related textbook solutions
Related questions
QUESTION 22
For a perfectly competitive firm, profit maximization (or loss minimization) occurs at the level of output at which
| a. |
MR = MC. |
|
| b. |
MR = AVC. |
|
| c. |
P = ATC. |
|
| d. |
MR = ATC. |
4 points
QUESTION 23
If MR > MC, then
| a. |
profits are being maximized. |
|
| b. |
the firm is producing too much of the good to be maximizing profits. |
|
| c. |
the firm can increase its profits (or minimize its losses) by increasing output. |
|
| d. |
the firm must be incurring losses. |
4 points
QUESTION 24
If firms are earning zero economic profits, they must be producing at an output level at which
| a. |
price minus marginal cost. |
|
| b. |
total revenue equals total costs, in other words, normal profits. |
|
| c. |
price equals average variable cost. |
|
| d. |
marginal revenue equals marginal cost. |
|
| e. |
none of the above |
4 points
QUESTION 25
In the theory of perfect competition,
| a. |
the market demand curve is horizontal. |
|
| b. |
the single firm faces a horizontal demand curve. |
|
| c. |
the single firm faces a downward-sloping demand curve. |
|
| d. |
the market demand curve is downward sloping. |
|
| e. |
b and d |
