5 Written questions
5 Matching questions
- If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then:
- (Last Word) When patents on new medications expire, the market for those drugs:
- The ability of a good or service to satisfy wants is called:
- What do the income effect, the substitution effect, and diminishing marginal utility have in common?
- A supply curve that is a vertical straight line indicates that:
- a change from being monopolistic to being competitive.
- b They all help explain the downsloping demand curve.
- c a change in price will have no effect on the quantity supplied.
- d utility.
- e the price elasticity of demand is 2.25.
5 Multiple choice questions
- and industry output will be less than the initial price and output.
- buyer responsiveness to price changes.
- relatively price inelastic.
- both allocative efficiency and productive efficiency are being achieved.
5 True/False questions
Which type of goods is most adversely affected by recessions? → less price elastic than the demand for Honda Accords.
The process by which new firms and new products replace existing dominant firms and products is called: → buyer responsiveness to price changes.
Anchoring → to firms in all types of industries.
The MR = MC rule applies: → demand is elastic at high prices.
In answering the next question(s), assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.
For a purely competitive firm, total revenue graphs as a: → straight, upsloping line.