Unit 2

Question 1

An entrepreneur needs sweaters for sale the entrepreneur has fixed cost is $100 when you make sense what is in one month to spend $17 and if he has never caused what is the marginal cost of the 11th sweater

Answer 1

$2

Question 2

Which of these is most likely to lead directly to a black market

Answer 2

Rationing

Question 3

What happens to a monopolistically competitive firm that begins to charge an excessive price for this product

Answer 3

Consumers will substitute a rivals product

Question 4

Why do companies practice price discrimination

Answer 4

Price discrimination recognizes that groups of consumers are willing and able to pay different amounts and maximize profits by changing each group a different price

Question 5

What kind of table lists the quantity of a good day personal by a different prices

Answer 5

Demand schedule

Question 6

Which of the following is an example of lower production cost brought about by the use of technology

Answer 6

The use of email to replace lower surface mail

Question 7

According to figure 5.4 what term describes elasticity of supply in this market as a price inclines from one dollar to two dollars a slice

Answer 7

Inelastic

Question 8

A new office building has open and the demand for pizza has increased demand curve states that consumers..…

Answer 8

$2, 250 slices

Question 9

Sunshine island has three large supermarkets the supply most of the groceries for the islands population the gas station also sells a very small selection of groceries how would you describe the market for groceries on seaside I would

Answer 9

Oligopoly

Question 10

What determines the price and the quantity of product of most goods

Answer 10

The interaction of supply and demand

Question 11

According to figure 4.4 how many slices of pizza will actually buy if the price is $1 per slice

Answer 11

two

Question 12

According to figure 6.3 in the market a unit price of $1 would be…

Answer 12

Price ceiling

Question 13

Which of my industries have been D regulated in in recent years

Answer 13

Airlines

Question 14

When prices rise which of the following happens to income income

Answer 14

It buys less

Question 15

Which of the following is a fixed cost for a store

Answer 15

Rent

Question 16

In response to rising car traffic demand for bicycles has increased the new equilibrium point will show…

Answer 16

More bikes sold sold but at a higher price

Question 17

What is monopolistic competition

Answer 17

Many companies selling similar but not identical products

Question 18

How much control over priced perfectly competitive market have

Answer 18

None

Question 19

What determines how a change in price will affect total revenue for a company

Answer 19

Elasticity of demand

Question 20

The price of pizza has just increased by $1 from an earlier low price based on Ashley’s demand curve in figure 4.4 which of the following statements is true

Answer 20

Ashley will buy two few were slices of pizza

Question 21

Which of the following is an example of government influence on supply

Answer 21

Subsides

Question 22

According to figure 6.2 in this market price of $1.50 would be

Answer 22

The equilibrium price

Question 23

What is the definition of oligopoly

Answer 23

Two or four firms produce in about 70% to 80% of the output

Question 24

Which of the following events could cause the demand curve of a sports magazine to shift to the right

Answer 24

A star baseball player interest thousands of people in professional sports for the first time

Question 25

It Baker calculate suspending $16 on labor and materials she can make 10 cakes a day dollars and 2412 cakes…

Answer 25

Decreasing marginal returns

Question 26

Elena is looking for an apartment which of the following is an example of her search costs

Answer 26

Elena misses two days of work at the supermarket to visit different apartments available for rent

Question 27

When the government deregulate a product or service what happens to it

Answer 27

Some government regulations over the industry are eliminated

Question 28

Which of the following statements is true about profits in a Monopolistically competitive market

Answer 28

Many firms were in profits in the short-term but they must constantly innovate and compete to earn demand will fall

Question 29

How is the current demand for a good related to its future price

Answer 29

If the price is expected to drop current demand will fall

Question 30

What is the effect of import restrictions on price

Answer 30

They cause prices to rise

Question 31

According to figure 5.4 what is the elasticity of supply is the price decreases from $3 to $1.50 a slice

Answer 31

.86

Question 32

Be some figures to explain to you what is a possible equilibrium point on the market after it has been affected by supply shock

Answer 32

$2, 150 slices

Question 33

Which of these industries has not been considered a natural monopoly in the past 30 years

Answer 33

Diamonds

Question 34

The price of the ticket into town has risen from $7 dollars I know what is most likely effects of the charge in price

Answer 34

The quantity demand movie tickets will decrease

Question 35

Shoe factory has an elasticity of supply of .5 as the price of $50 how many will be produced at the new price

Answer 35

125, 000

Question 36

Technology process has reduced the cost of manufacturing MP3 players if demand is unchanged,

Answer 36

More MP3 players will be sold at a lower price

Question 37

Which of the following is not a condition for perfect competition

Answer 37

Sellers offer a wide variety of products

Question 38

Complete this sentence: in a monopoly market quantity sold will be ___ the quantity sold in a perfect competitive market

Answer 38

Less than

Question 39

What kind of change would be expected in the demand of the country that has a growing population

Answer 39

A rise in the demand for shelter

Question 40

Which receives government subsides that are in place to protect the population rather than for economic reasons

Answer 40

Small formers in France

Question 41

What is the name of the smallest amount they can legally be paid to most workers for an hour of work

Answer 41

Minimum wage

Question 42

What is one kind of Monopoly that the US government generally permits

Answer 42

Professional sports leagues

Question 43

The monopolist will see its production at a new level when marginal cost is equal to

Answer 43

Marginal revenue

Question 44

Centeris paribus or "all of the things held constant" is an assumption on that has which of the following effects on a demand schedule

Answer 44

It takes only prices into account

Question 45

New restaurant is open Ashley's demand for pizza has decreased and her demand curve has shifted based in figure 4.4 which combination and quantity demand would you expect to find her demand curve

Answer 45

$2, one slice

Question 46

If the market price for pizza is $to a slice how many sizes will be supplied by all producers in the market according to figure 5.4

Answer 46

2,500

Question 47

According to figure 6.2 at equilibrium price him a slice of pizza will be sold

Answer 47

200

Question 48

What is one of the effects that the Internet has on businesses

Answer 48

It has reduced start up cost for many businesses

Question 49

Which of the following goods would be likely to be bought in the same quantity even if he doubled in price?

Answer 49

Pencils

Question 50

Complete the following sentence: at the most profitable level of production the firm marginal cost will be ___ the market price

Answer 50

Equal to