5 Written questions
5 Matching questions
- The demand for autos is likely to be:
- The MR = MC rule applies:
- Consider This) Newspapers dispensing devices seemingly "trust" people to take only a single paper but the devices actually rely on the law of:
- (Last Word) When patents on new medications expire, the market for those drugs:
- If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
- a less price elastic than the demand for Honda Accords.
- b change from being monopolistic to being competitive.
- c diminishing marginal utility.
- d decrease
- e to firms in all types of industries.
5 Multiple choice questions
- Alex's behavior is consistent with the endowment effect.
- creative destruction.
- people isolate purchases and sometimes make irrational decisions.
- Josh will only be happy with that salary if his cost of living has not increased.
- a change in price will have no effect on the quantity supplied.
5 True/False questions
The primary force encouraging the entry of new firms into a purely competitive industry is: → economic profits earned by firms already in the industry.
The demand for a necessity whose cost is a small portion of one's total income is: → less price elastic than the demand for Honda Accords.
In the short run a purely competitive firm will always make an economic profit if: → P > ATC.
Suppose a purely competitive, increasing-cost industry is in long-run equilibrium. Now assume that a decrease in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price: → The firms in the market are part of a decreasing-cost industry.
Anchoring → can influence decision-making with irrelevant information.