ECON 1002 WEEK 4 QUIZ WITH ANSWERS – MGMT 3503 (30/30)
ECON 1002 WEEK 4 QUIZ WITH ANSWERS – MGMT 3503 (30/30)
• Question 1
3 out of 3
... [Show More] points
Suppose the market price of lobster suddenly increases substantially. We can expect that most lobstermen will:
Selected Answer:
spend more hours catching lobster and supply more lobsters.
Correct Answer:
spend more hours catching lobster and supply more lobsters.
• Question 2
3 out of 3 points
All of the following are characteristics of perfectly competitive markets except:
Selected Answer: A
all firms produce a differentiated product.
Correct Answer:
all firms produce a differentiated product.
• Question 3
3 out of 3 points
In a firm's production planning horizon, the "long-run" refers to
Selected Answer:
the period during which all of the firm's inputs can be varied.
Correct Answer:
the period during which all of the firm's inputs can be varied.
• Question 4
3 out of 3 points
Assume Firm A has half the fixed costs of Firm B, but they have the same variable costs and total revenue for all quantities. Which of the following statements is true?
Selected Answer:
Firm A will produce the same quantity as Firm B.
Correct Answer:
Firm A will produce the same quantity as Firm B.
• Question 5
3 out of 3 points
Suppose a barber shop that has fixed cost equal to $900/month and total costs equal to $4,000/month. This shop will continue to operate in the short run as long its total revenue is greater than:
Selected Answer:
$3,100/month.
Correct Answer:
$3,100/month.
• Question 6
3 out of 3 points
Assume a firm's average total cost equals $80 and average variable cost equals $70 at the current level of production. If the marginal cost of producing the next unit equals $75, then:
Selected Answer:
average total cost will fall and average variable cost will rise.
Correct Answer:
average total cost will fall and average variable cost will rise.
• Question 7
3 out of 3 points
A firm's accounting profit is given by total revenue:
Selected Answer:
less explicit costs.
Correct Answer:
less explicit costs.
• Question 8
0 out of 3 points
In the long-run in perfectly competitive industries:
Selected Answer:
firms cannot earn economic profit and economic rent cannot persist.
Correct Answer:
firms cannot earn economic profit but economic rent can persist.
• Question 9
3 out of 3 points
Whenever a market is not in equilibrium:
Selected Answer:
a transaction can be made that will benefit both buyers and sellers.
Correct Answer:
a transaction can be made that will benefit both buyers and sellers.
• Question 10
3 out of 3 points
Price subsidies generally serve to:
Selected Answer:
decrease economic surplus and increase consumer surplus in a market.
Correct Answer:
decrease economic surplus and increase consumer surplus in a market. [Show Less]