ECON 2100 Midterm: ECON 2100 Kennesaw State ECON2100 Summer2016 Exam3B

19 views8 pages

turquoisegnu128

31 Jan 2019

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Econ 2100 (summer 2016 sections 10 & 11) According to the ftc classification of market concentration, a market is not concentrated if. Hhi is __________ and is highly concentrated if __________. below 1; above 1. below 1,000; above 1,800. above 75; below 25. negative; positive. Kyle sells potatoes in a perfectly competitive market. Last year he: produced 30,000 pounds of potatoes, sold each pound of output at a price of , had fixed costs of ,000, and earned a profit of ,000. More than one (perhaps all) of the above answers is correct. Brenda operates a lemonade stand for 2 hours. She spends for ingredients and sells of lemonade. During these two hours she could have instead mowed a neighbor"s lawn for (using the neighbor"s lawn mower and gas). It follows that from running the lemonade stand she has an accounting profit of _____ and an economic profit of _____.

Related Questions

1) The supply curve of a perfectly competitive firm is

a) Its entire MC curve

b) The upward-sloping portion of its MC Curve

c) It's MC Curve above shutdown point

d) Its MR Curve

2. The Long Run supply curve in a constant cost industry is

a) Upward sloping and linear

b) Downward sloping and linear

c) Horizontal and linear

d) Concave upwards

3. The curve which shows different combinations of inputs that yield the same level of output, is called

a) An isoquant

b) An isocost curve

c) Production function

d) Production possibility curve

4. When labor used is 12 units and output is 36, then

a) The marginal product of labor is 3

b) The total product of labor is 1/3

c) The average product of labor is 3

d) None of the above

5. Say the average product of 6 workers is 15. If the marginal product of the 7^th worker is 18, then

a) Marginal product is falling

b) Marginal product is constant

c) Average product is rising

d) Average product is falling

6. Which one of the following statements is TRUE?

a) AP_L cuts the MP_L curve from above

b) MP_L cuts the AP_L curve from above, at the maximum point of the AP_L curve

c) Average and marginal product do not intersect

d) AP_L cuts the MP_L curve from below.

7. The MRTS is equal to the

a) The slope of the total product curve

b) Change in output divided by the change in labor

c) Change in output minus the size of capita

d) Ratio of the marginal products of the inputs

silvermallard649

1-7 True or False

1) In the short run, a perfectly competitive firm can earn positive, zero, or negative profit depending on the market price of the firm's output.

2)In the model of the perfectly competitive firm, the firm's fixed costs are equal to its implicit costs of production.

3)Assume the market price is greater than average total cost at the perfectly competitive firm's profit-maximizing level of output. In this case, the firm is earning positive economic profits, which act as an incentive for new firms to enter the market.

4)Assume that at the current level of output, price equals marginal revenue, but is less than average total cost. So long as price is greater than average variable cost, the firm should continue to operate in the short run to minimize its losses.

5)The fact that a firm is a price-setter does not ensure it will make a positive economic profit in the short run and over time.

6)Barriers to entry serve to limit the number of firms that operate in a particular market and, as 11) such, reduce the amount of total profit earned in the market.

7)In the prisoner's dilemma game, each player's dominant strategy is also the Nash equilibrium.

14-17 Multiple Choice

14) Marginal revenue is equal to:
A) the change in P x Q due to a one unit change in output. B) the change in quantity divided by the change in price.

C) the change in price divided by the change in output. D) price, but only if the firm is a price searcher.

15) In order to maximize its profits, a price-taking firm should produce the level of output at which:

A) marginal revenue = marginal cost. B) total revenue = total cost.

C) variable revenue = variable cost. D) average revenue = average cost.

16) Assume that there is an improvement in the technology used by firms in a perfectly competitive industry that is initially in long-run equilibrium. In the short run this would cause:

A) cannot be determined with the information given. B) no change in the firm's economic profit.
C) a decrease in the firm's economic profit. D) an increase in the firm's economic profit.

17) Assume at the firm's profit-maximizing level of output P = AVC. In this case, the firm will be:

A) incurring an economic loss. B) earning a positive economic profit.

C) earning economic profit = 0. D) breaking even.

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.

ECON 2100 Midterm: ECON 2100 Kennesaw State ECON2100 Summer2016 Exam3B

Document Summary

Get access

Related Documents

ECON 2100 Midterm: ECON 2100 Kennesaw State ECON2100 Summer2016 Exam3B Key

ECON 2100 Midterm: ECON 2100 Kennesaw State ECON2100 Summer2016 Exam3A Key

ECON 2100 Midterm: ECON 2100 Kennesaw State ECON2100 Summer2016 Exam3A

Related Questions

		price and demand are inversely related.
		price elasticity of demand is equal to one.
		demand is perfectly inelastic.
		demand is perfectly elastic.

		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.

		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.

		the supply curve.
		the process of outsourcing.
		the process of downsizing.
		the process of creating and selling a product.

		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.

		perfectly competitive.
		monopolistically competitive.
		a monopoly.
		an oligopoly.

		economic profits are zero.
		normal profits are zero.
		when accounting losses are zero.
		a. and b. are true

		act independently.
		engage in strategic behavior.
		have perfect knowledge of the behavior of others.
		openly collude.

		falling.
		rising.
		horizontal.
		shifting.

		market horizon.
		short run.
		calendar year.
		long run.