🩵: FROM REVIEWERS

Question 1

Economists typically assume that firms aim to maximize (?)

Answer 1

PROFIT

Question 2

(?) cost refers to direct, out-of-pocket payments (like wages, ingredients, rent).

Answer 2

EXPLICIT

Question 3

(?) cost are opportunity costs of using owner’s resources (e.g.,an owner could have earned $100/hr painting instead of running a business, or could have rented the business building that he owned)

Answer 3

IMPLICIT

Question 4

(?) profit = Total Revenue − Explicit Costs

Answer 4

ACCOUNTING

Question 5

(?) profit = Total Revenue − (Explicit + Implicit Costs)

Answer 5

ECONOMIC

Question 6

(?) is a function that shows the relationship between inputs (like workers) and output (like cakes).

Answer 6

PRODUCTION FUNCTION

Question 7

(?) refers to the additional output from hiring one more worker.

Answer 7

MARGINAL PRODUCT

Question 8

(?) Marginal Product: States that as more workers are added, each additional worker contributes less to output due to limited equipment or space.

Answer 8

DIMINISHING

Question 9

Total Cost Curve gets steeper as output (?) because of diminishing marginal product (more
labor is needed for smaller increases in output).

Answer 9

INCREASES

Question 10

Production function gets (?) as output increases (output rise more slowly)

Answer 10

FLATTER

Question 11

(?) are costs that don’t change with output (e.g., rent, full-time bookkeeper).

Answer 11

FIXED COST

Question 12

(?) are cost that change depending on output, such as ingredients and hourly wages

Answer 12

VARIABLE

Question 13

Total Cost = Fixed Cost + (?) cost

Answer 13

VARIABLE

Question 14

Average total cost is calculated as total cost divided by the (?) measuring per-unit production cost.

Answer 14

QUANTITY

Question 15

The marginal cost curve intersects the average total cost curve at its lowest point, which reflects the minimum point on the ATC curve. This intersection represents the most (?) scale of production—the point where producing one more unit costs exactly as much as the current average.

Answer 15

EFFICIENT

Question 16

A firm is a (?) if it is the sole seller of its product and if its product does not have any close
substitutes.

Answer 16

MONOPOLY

Question 17

The Monopolist’s demand curve slopes (?)

Answer 17

DOWNWARD

Question 18

The (?) Effect refers to the increasing effect in total revenue (R) due to the increase in quantity
produced

Answer 18

OUTPUT

Question 19

The (?) Effect refers to the decreasing effect in total revenue due to the increase in qty produced leading to price decrease

Answer 19

PRICE

Question 20

In a monopoly, the firm determines its profit-maximizing output by comparing marginal revenue (MR) and marginal cost (MC). The optimal or profit-maximizing output occurs where MR (?) MC

Answer 20

= (EQUALS TO)

Question 21

What is the profit-maximizing quantity for the monopoly?

Answer 21

Qmax

Question 22

What is the profit-maximizing quantity for a perfectly competitive market?

Answer 22

Qmax

Question 23

What is the monopoly’s profit-maximizing price for its product?

Answer 23

P2

Question 24

At which price will a perfectly competitive market charge?

Answer 24

P1

Question 25

It is possible for a monopoly firm to produce and sell a quantity of output below the level that maximizes total surplus. And this leads to (?) loss, which measures how much the economic pie shrinks as a result

Answer 25

DEADWEIGHT

Question 26

An (?) is a market structure characterized by a few sellers who dominate the industry and hold significant control over market share

Answer 26

OLIGOPOLY

Question 27

In an oligopolistic market, there’s also a tendency for (?) where companies may work together, either formally or informally, to fix prices or restrict output, although this practice is generally illegal

Answer 27

COLLUSION

Question 28

(?) equilibrium is a situation in which economic actors, interacting with one another, each choose their best strategy given the strategies that the others have chosen.

Answer 28

NASH

Question 29

The (?) dilemma, which provides an insight into why cooperation is difficult; Many times in life, people fail to cooperate with one another even when cooperation would make them all better off. An oligopoly is just one example. This provides a general lesson that applies to any group trying to maintain cooperation among its members.

Answer 29

PRISONER’S

Question 30

Self-interest makes it hard for oligopolists to maintain the cooperative outcome with low production, high prices and monopoly profits

Answer 30

TRUE

Question 31

In MERLA, “A” stands for

Answer 31

ADAPTING

Question 32

(?) is the continuous and systematic collection of data on specified indicators to track progress toward expected results.

Answer 32

MONITORING

Question 33

(?) is systematic assessment results to determine its effectiveness, impact, sustainability, and relevance. It determines what changes occurred and how and why the changes occurred

Answer 33

EVALUATION

Question 34

TOC stands for?

Answer 34

THEORY OF CHANGE

Question 35

(?) is an explicit articulation (graphic display, matrix, or summary) of the different levels, or chains, of results expected from a particular intervention, project, program, or development strategy

Answer 35

RESULTS FRAMEWORK

Question 36

(?) refers to the total number of people living in a defined geographic area, whose size, structure, distribution, and growth patterns significantly influence a country's economic performance, development strategies, and policy priorities

Answer 36

POPULATION

Question 37

[T OR F] In a perfectly competitive market, all firms are price makers.

Answer 37

FALSE; THEY ARE PRICE TAKERS

Question 38

[T OR F] Perfect information in a competitive market means all buyers and sellers know prices and product quality.

Answer 38

TRUE

Question 39

[T OR F] The foreign exchange market and some agricultural markets come close to perfect competition.

Answer 39

TRUE

Question 40

[T OR F] In perfect competition, products are differentiated to attract consumer preference.

Answer 40

FALSE; PRODUCS ARE HOMOGENOUS

Question 41

[T OR F] A monopolist produces at a higher quantity and lower price compared to a firm in perfect competition.

Answer 41

FALSE; A MONOPOLIST PRODUCES LESS AND CHARGES MORE

Question 42

What is the fundamental cause of a monopoly?

Answer 42

BARRIERS TO ENTRY

Question 43

Barriers to entries of Monopolists (3)

Answer 43

(1) Ownership of a key resource (2) Government regulations (3) Economies of scale

Question 44

Why does Microsoft not charge $10,000 for a copy of Windows, even though it has monopoly power?

Answer 44

Higher prices reduce the quantity demanded

Question 45

What best describes the National Grid Corporation of the Philippines (NGCP)?

Answer 45

A regulated private monopoly in power transmission

Question 46

What type of monopoly exists when one firm can supply the entire market at a lower cost than multiple firms?

Answer 46

NATURAL MONOPOLY

Question 47

Manila Water Company is considered a geographic monopoly because (?)

Answer 47

No other company is allowed to operate in its zone

Question 48

Why do governments sometimes create monopolies through patents and copyrights?

Answer 48

TO ENCOURAGE INNOVATION AND CREATIVITY

Question 49

What type of market power does a monopolist have that a competitive firm does not?

Answer 49

The ability to set prices above marginal cost

Question 50

How does the demand curve faced by a monopoly differ from that faced by a competitive firm?

Answer 50

IT IS DOWNWARD SLOPING FOR MONOPOLIES

Question 51

What is one societal drawback of monopolies as discussed in the lesson?

Answer 51

Their pricing leads to underproduction and inefficiency